Last updated on June 3rd, 2021 at 06:17 pm
Whenever you buy a two-wheeler, irrespective of the fact, whether it’s new or old, it is mandatory to insure it before you hit the road. In general, when it’s about opting for bike insurance, the two common types that are available in the market are third party bike insurance and comprehensive bike insurance plan.
Unlike the comprehensive bike insurance plan, the premium rate of the third party insurance companies are regulated by IRDAI and is comparatively cheaper.
Before you opt for third party bike insurance, it’s always better to have some research on your own so that you can make a decision effectively. Go through the online third party bike insurance that is available and make a choice accordingly. But, before you make a decision, take a look at some of the parameters that affect the premium while applying for an online third party bike insurance.
Factors that affect Premium for Online Third-Party Bike Insurance
Insured Declared Value of the Vehicle
It affects the premium of the comprehensive two-wheeler insurance plan as compared to third party bike insurance. The calculation of the IDV is done based on the depreciation rate, the selling price of the vehicle and the rate varies from biker to biker.
The premium rates for the third party bike insurance are calculated based on the cubic capacity of the bike’s engine. In accordance with the Indian Motor Tariff Act, the engine capacity of the bikes are categorized under three categories 0-150cc, 150-350cc and 350cc and above. For the higher cc bike category, the premium charged is high compared to other range bike categories.
The premium rates also vary depending upon the geographic location. The metropolitan city is more prone to danger; therefore, if you stay in a city like Delhi, Kolkata or Mumbai, you have to pay a higher premium for the third party bike insurance. Moreover, the premium rate is comparatively lower in two-tier or one-tier cities for availing online third party bike insurance as compared to the metropolitan cities.
The security features that are installed in your two-wheeler can also have an impact on the insurance premium. If your bike is enhanced with a security device, it means that it will have less exposure to risk. These devices can also reduce the impact of damage, which reduces the cost of premium of a biker. As per the rule, if the bike is equipped with security features, then the biker will get a discount on the insurance premium while applying for online third party bike insurance.
Age of the Rider
The age of the owner of the two-wheeler is also taken into consideration during the time of availing an online third party bike insurance. In case of having a third party bike insurance, the young rider has to pay more premium than a middle-aged individual. This is because of the fact that the risk exposure of a teenager is comparatively higher than an aged person.
No Claim Bonus
In case of a third party bike insurance, if the insured person didn’t raise any claims during the policy period, he will get a reward from the insurer in the form of No Claim Bonus. It will also reduce the premium of the biker for the next year. Moreover, the policyholder is entitled to get a discount of up to 50-60% on the no claim bonus.
Age of the Vehicle
In availing a third party bike insurance, the age of the vehicle is hardly taken into consideration as it is mandatory for every biker to have a third party bike insurance. But during the time of renewal of the third party bike insurance policy, the premium may vary depending on the age of your two-wheeler. For having an old two-wheeler, you may have to pay a higher premium as it is more prone to damages.
Before availing a third party bike insurance, it is better to have an idea on the voluntary deductible. It is an amount that a policyholder has to pay only in the event of a claim. Therefore, if you choose a high voluntary deductible, you have to pay less premium for your third party bike insurance.
There is a chance that a modification of your two-wheeler can lead to attracting a higher rate of premium on your third party insurance policy. It is because modification of the bike can increase its risk to accidents, especially if it is done from an unauthorized service centre. Therefore, the premium charged on availing third party insurance is comparatively higher.
If you are looking to purchase a third party bike insurance, then it’s advisable that you should first go through the parameters mentioned above. While opting for an online third party bike insurance, make sure to plan your budget beforehand so that it meets your overall needs.