Trimming Bike Insurance Premiums: Avoiding Small Claims

The conventional wisdom regarding a two-wheeler insurance policy is to refrain from filing claims for minor damages. While insurance is a safety net against significant financial losses resulting from accidents or natural disasters, it may not be the most cost-effective solution for minor repairs. Policyholders often wonder why they should pay out of pocket when insurance is available. The answer is simple: insurance is meant for major damages, and using it for minor issues can lead to financial drawbacks.

Lowering Bike Insurance Premiums through Prudent Claim Management

Comprehensive bike insurance policies offer an array of inclusions, encompassing accident-related damages, fire or natural disaster harm, theft protection, and more. Some policyholders might opt for additional features like zero depreciation add-ons to maximise claim amounts. However, filing a claim for any damage, regardless of size, may not be advantageous. Claims are subject to terms and conditions set forth under the motor insurance policy.

The No Claim Bonus (NCB) is the cornerstone of managing insurance costs. NCB is a concession insurance company that provides a claim-free year for each, and its cumulative nature allows for substantial premium reductions. For instance:

One year without claims: 20% concession

Two consecutive claim-free years: 25% concession

Three consecutive claim-free years: 35% concession

Four consecutive claim-free years: 45% concession

Five consecutive claim-free years: 50% concession

Filing a claim resets the NCB cycle to zero, increasing premiums at two-wheeler insurance renewal. Consider a scenario where a policyholder, having maintained a clean record for five years, claims minor damages. Not only does this restart the NCB cycle, but it also leads to a surge in the premium, often exceeding the cost of repairing minor damages. Therefore, the prudent approach is to reserve claims for major repairs, theft, or incidents involving third parties. NCB does not affect third-party two-wheeler insurance premiums as it does not cover damage to the insured bike.

The Advantages Of Purchasing Two-Wheeler Insurance Online

Apart from claim management, purchasing insurance also affects cost optimisation. Opting for an online two-wheeler insurance policy offers several benefits contributing to lower premiums.

Cost Savings: Online policies are generally more cost-effective than their offline counterparts. The reduced operational expenses for online transactions enable insurance providers to offer lower-priced policies.

Time Efficiency: Online insurance purchases offer a swift and hassle-free experience, providing policyholders with a soft copy of their bike insurance within minutes of payment, eliminating the need to wait for physical documents, particularly when no inspection is necessary.

Comparison Opportunities: The online platform facilitates easy comparison of various insurance policies. Policyholders can thoroughly assess features, services, and costs without the time-consuming efforts required for offline comparisons. This ensures informed decision-making and the selection of a policy that suits individual needs.

Managing bike insurance costs involves strategic decisions such as avoiding minor claims to preserve NCB benefits and opting for online purchases. Recognising the intended purpose of insurance and aligning it with claim scenarios can lead to significant long-term savings. The chassis number of a bike serves as a unique identifier, essential for registration, insurance, and tracking the vehicle’s history. Additionally, online transactions’ convenience and cost advantages make them a favourable choice for those seeking an efficient and economical insurance experience. Claims are subject to terms and conditions set forth under the motor insurance policy.

Standard T&C Apply

All savings are provided by the insurer as per the IRDAI-approved insurance plan

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

Recent Articles

Related Stories