5 Things To Consider When Changing Bike Insurance Company
Owning a bike is a great way to commute in Indian cities. However, it is important to have adequate insurance coverage for unforeseen accidents or damages. Over time, your needs may change or you may find better offers from other insurance providers. This is when you should consider changing your existing bike insurance company. Here are 5 key things you need to evaluate before making the switch:
1. Coverage and benefits
The primary purpose of bike insurance is to provide financial protection in case of an accident or theft. Compare the coverage offered by different insurers. Check what perils are covered - third party liability, own damage, engine protection etc. Also check add-on benefits like zero depreciation, consumables cover, emergency roadside assistance etc. Opt for a plan that offers maximum coverage at an affordable price.
2. Premium amount
Insurance premium is the amount you pay annually or in instalments to the insurance company. It is directly linked to the sum insured, add-ons chosen, your age and claims history. Get premium quotes from multiple insurers for an identical coverage plan. Compare not just the base premium but also discounts offered on NCB (no claim bonus), online purchase, payments via certain modes etc. Opt for the insurer with the most competitive premium rates.
3. Claim settlement ratio
Claim settlement ratio is an important metric that shows how well an insurance company is honouring its commitment towards its customers. It is calculated as the percentage of total claims filed by policyholders that the insurance company has approved and paid out. A higher claim settlement ratio, such as 80-90%, means the insurer is settling majority of claims received. This demonstrates the insurer's financial ability and credibility. One should check an insurer's claim settlement ratio over the past 3-5 years from public sources before deciding, to ensure better claim servicing experience.
4. Customer service
In case of an insurance claim, you will have to interact extensively with the insurer's customer support team. Evaluate the service standards of different providers based on their response time over calls/emails, grievance redressal mechanism, branch network etc. Opt for an insurer that is easily accessible, responsive and has a good track record of resolving policyholder issues smoothly.
5. Financial strength
The financial strength of an insurance company determines its ability to pay out claims. When buying an insurance policy, it is important to ensure the company will still be in business if you need to make a claim. They assign ratings based on factors like capital, investments, profits and risk management. A high rating means the insurer has strong finances to handle claims even during market downturns. Policyholders should check ratings before choosing an insurer for peace of mind.
Conclusion
Carefully evaluating the above key factors will help you choose the best third party bike insurance as per your budget and protection needs. Don't forget to review your policy annually to ensure you are not overpaying for coverage. Opting for the right insurer is as important as having the right insurance for ensuring financial security while riding your bike.
