Ensure your vehicle is insured !

There are various insurance companies offering a number of policies, each with its own terms and conditions. Selecting an appropriate insurance policy for your motorcycle could be difficult and confusing. It is important that you select a policy that suits your requirements and budget, for which you need to determine all details that your vehicle’s policy must cover.

Three types of policies are applicable for vehicle:

1. Third party liability insurance: In this category, insurance company pays damage or injury expense to third parties that have been affected by an accident for which you are responsible. It does not cover expenses that may arise for treating you or repairing your vehicle. By law, it is mandatory that third-party liability insurance needs to be adopted by every driver.
2. Collision insurance policy: In this category, along with the third parties, the damage to your vehicle and expenses for treating your injuries are covered, even if you are responsible for the accident. If the monetary value of your bike is more than its cost of maintenance, then this category of insurance cover is adopted.
3. Comprehensive insurance policy: This insurance policy is the most expensive of all. This not only covers collision-related damage, but other damages like earthquake, theft, fire, storm, flood, vandalism, etc. The premium differs from company to company.
4. Zero depreciation or zero debt policy: This policy is for a new car owner and it also has a higher premium than other categories. It is similar to the comprehensive policy. The only difference is that, in the comprehensive policy, the insurance company pays claim money calculating current value (depreciation) of your vehicle; but in zero depreciation policy, the insurance company will pay the whole cost of damage, without calculating the depreciation value of the vehicle.
5. NO claim bonus: It provides a bonus to the policy holder, if he/she does not make claims for a particular year. As there is no claim made, insurance company provides discounts in the premium of next year. This no-claim bonus can also be transferred from one vehicle to a new vehicle. Discount varies from company to company, but it is usually in the range of 20-50%.

Depending upon your requirements, budget and the risks involved, choose your insurance policy. The selection of an insurance company for providing your insurance policy is also a tricky job. Every insurance company has its own clauses and prices, so proper research is to be done before selecting any insurance company.  After selecting a genuine insurance company and comparing prices, read the clauses mentioned in the policy with utmost care and check whether it fulfills all requirements.

The premium amount is the major concern for most people. If you want very less premium amount, then third party liability insurance is ideal. Premium amount will be decided on various factors like the type of bike, year of the model, the distance the vehicle has covered, mileage the vehicle offers, and many more. Companies also ask for records like occurrence of a previous accidents, etc.

It is best to select insurance cover for your vehicle with better understanding and knowledge of company policies in order to get maximum benefits.