2 Common mistakes while buying bike insurance

There are many things you should consider while buying policy online. If you have proper knowledge about the product, you can choose the best company for your bike insurance. There are two common mistakes which policy holder does not know and ignore it while buying the policy.

No Claim Bonus Rules and Benefits

The insurance company given bonus in the comprehensive package policy. The bonus is given on own damage premium when the person does not take any claim during the policy period. The bonus can range from 20% to 50% depending upon the renewal year. In case of third-party policy, no claim bonus is not applicable. The policy holder can avail the benefit of No Claim Bonus by getting a discount on premium even after the policy is expired but with in 90 days of expiring the policy. In case the policy holder switches the company at the time of renewal, the bonus will be same in the new company also.
The discount of no claim bonus starts from first renewal. At the time of first renewal, you can claim No Claim Bonus of 20% only. In the portal you will have the option to choose bonus so with the proper knowledge, choose No Claim Bonus because, which buying the policy you can write or choose anytime but while getting the claim, everything will be checked by the company’s claim department.
First year No Claim Bonus is 20%, seconds year it increasing from 20% to 25%, third year 35%, then 45% and ends at 50%. For future renewals you can claim 50% bonus only which is the maximum limit.

Incorrect Information

While renewing your bike insurance policy or buying a new bike insurance policy online you should have enough knowledge about the rules and the information you enter. Your speeling should be correct and the vehicle details you enter should be exact same as mentioned in your Registration Certificate (RC). You should also know the mandatory and optional add on cover and their benefits while paying for them. In online portal, nobody will be there to tell you or the customer care support will focus on sales only. Mis selling is also very common in insurance industry. So, either buy policy from your agent or keep proper knowledge while buying bike policy online.

While issuing the policy it takes 5 minutes* and the company does not check your details. So, it is completely your responsibility to enter the details properly. The company will verify at the time of claim and if any Rong information found, you claim can be rejected.

Example: Mr Rajesh buy a fresh bike insurance policy after 3 years. For 3 years he was not having any policy. Due to lack of knowledge, he entered No claim bonus as 50% discount. As the result, when the claim arises company check historical data and found that the policy is not eligible for bonus. The claim can be rejected in this situation.

A part from that the policy holder should know about the calculation of IDV. It is the basically the value of vehicle. IDV stands for insured declared value, means the value according to the policy holder and the policy holder should be aware of the correct value and rules of depreciation of the value.


With the online bike insurance policy portals, you can do everything and get a policy in 5 minutes but at the time of company do not check your and vehicle details so you should be responsible for what information you give and which chooses you choose. Everything will be verified at the time of claim.

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