You are here

Factors That Impact Your Bike Insurance Premium

Submitted by rituroy on Tue, 06/22/2021 - 04:06

Purchasing a two-wheeler has never been more thrilling in India. Existing manufacturers are releasing new models and overhauling their product lines, while new manufacturers are also joining the market.
However, as a bike owner, your responsibilities don't end with studying and selecting the best bike for you. Two wheeler insurance is also required. Primarily, to keep you safe from any unexpected road collisions, and secondarily, to avoid the recently implemented heavy fines.
While it should come as no surprise that your bike is important when purchasing two-wheeler insurance, it is important in more ways than you may realise. Whether you acquire bike insurance online or in person, the cost is equal to the value of your bike.
Here are a few of the most important considerations:
Bike Manufacturer
The manufacturer of your bike is a major aspect that can affect your bike's insurance premium. Indian bikes from Yamaha, TVS, Hero, and other manufacturers are common in India.
There are, however, some quality bikes available for enthusiastic riders, who may now choose from brands like MV Augusta, Benelli, Indian, Harley Davidson, and others. These high-end motorcycles have a lot to offer in terms of features, driving enjoyment, and beauty, as well as igniting your passion. These characteristics, on the other hand, raise the cost of your bike insurance.
An Indian-made scooter or motorcycle, on the other hand, will have a reduced bike insurance premium rate.
The Bike’s Make and Model
While the manufacturer of a bike plays a part in determining the policy premium and coverage, the model you choose is as vital.
In fact, with the same manufacturer but different models, 2 friends will wind up paying different insurance prices. Both of them, for example, own Yamaha motorcycles. They will end up paying radically different premiums because one has a Yamaha FZ and the other owns an MT 15.
The Bike’s Age
In most cases, the value of a bike decreases as it ages. Unless you're riding an antique bike. As the age of the bike increases, so does the wear and tear, as well as the possibility of other problems. When you buy bike insurance online, the lower the value of your bike, the lower the coverage rate.
As a result, with an older bike, you might expect a lower insurance price.
Engine capacity of your bike
A motorcycle's engine is one of its most important components. When purchasing bike insurance online, you will be able to check the premium pricing differences based on engine capacity. For third-party liability insurance, the IRDAI, or Insurance Regulatory and Development Authority of India, has established premiums based on engine capacity.
There are 4 major categories: up to 75cc, 75cc to 150cc, 150cc to 350cc, and 350cc and higher. Needless to mention, the policy premium rises as the engine capacity rises.
RTO Location
The RTO has an impact on your two-wheeler insurance premium. The zones are separated into 2 categories based on the location of vehicle registration: Zone A and Zone B.
Zone A includes Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Pune, and Ahmedabad. Rest areas are classified as zone B. The premium varies depending on the engine capacity, damage factor, and the zones where the bike is registered.
Insured Declared Value or IDV
The IDV or Insured Declared Value of a bike is the current value of your bike after taking into account several aspects such as the bike's manufacturer, age, depreciation, and so on. When you get two-wheeler insurance online, the IDV of a bike is the single most important component in determining the rate. If you lose your bike or it is damaged beyond repair, your insurance provider will offer compensation equal to the IDV that you choose.
You do have the chance to change the IDV of the bike during policy renewals. A larger IDV would result in a higher total premium, whereas a lower IDV would result in a lower policy premium.
No Claim Bonus (NCB)
The no claim bonus or NCB is a discounted percentage reward on Own Damage premium offered to drivers who do not file any claim throughout a policy term. Over the course of 5 years, the percentage rises from 20% to 50%. This is often recognised as one of the most effective methods for obtaining discounts on two-wheeler premiums. The NCB has a direct effect on the two-wheeler premium.
To sum up…
You have the option of purchasing bike insurance online or in person. The most crucial thing, though, is to purchase a bike insurance coverage. The number of automobiles on Indian highways is steadily increasing, adding to the complexities and dangers. Riding without a bike insurance policy exposes you to a range of dangers. If you are involved in an accident, you will be responsible for paying for the damages out of your own money.
However, having adequate bike insurance will ensure that you are not responsible for any repairs or damages. According to the new Motor Vehicles Amendment Act, it will also save you from paying substantial fines. For riding an uninsured bike, a person must pay INR 2,000, which is often more than the applicable policy premium.