In the modern world, insurance is an essential amenity to survive any uneventful situations. Be it health, property or automobiles – one must cover them under insurance plans. All these insurances are for a specific tenure and need to be renewed upon lapse. Even for a simple vehicle, such as a bike, insurance is a must. You must compare bike insurance plans of various companies and go for the best plan that caters to your needs at minimum premium payments. Similarly, when it’s time to renew bike insurance, you must do some research to find the best offers and rebates. Five easy ways to get discounts on bike insurance renewal are:
- Two-wheeler insurance renewal online: With the easy availability of the Internet, online shopping has gained a lot of momentum. You can compare bike insurances online and get the best deal. The insurance renewal of the vehicle can also be done on the Internet. The primary benefit of online renewal is that you can examine the various offers side by side and select the best premium rate. Nowadays, many companies offer a premium discount when you buy online.
- Always opt for long-term policy: Earlier, bikes were insured for 1 year only. Annual renewal of insurance left a huge number of old bikes uninsured. To resolve this, IRDAI increased tenure period to 5 years. These long-term policies have greater benefits compared to the single year plan. Long-term insurance renewal proposes better discounts. Insurance companies offer 10% – 15% concession in the installment premium if you renew bike insurance for the tenure of 5 years. Previous benefits of single year insurance are also carried forward to the latest renewal plan. Two-wheeler insurance renewal online process of various companies offer this deal.
- Request NCB discount: No Claim Bonus or NCB is the reward provided to the insured by the insurance company when he/she does not make any claim in the previous year. The discount percentage rises with every successive claim-free year. Say, if your NCB was 20% after first claim-free year, it increases to 25% after second claim-free year and 35% after third year and so on. After 5 continuous claim-free years, NCB would have increased to 50%. So, when it is time to renew bike insurance, you can make use of this collective discount rate and get a good reduction in your premium.
- Take security measures to protect your bike: Bikes are a prized possession for the owner. It is of equal importance to the insurance company, as they are liable to compensate if your bike gets stolen or damaged in any unforeseen event. Thus, if you safeguard your bike by installing security devices like anti-theft, GPS tracker or security alarm etc., it provides some relief to the insurance provider too. The company, therefore, accolades your effort with premium discounts.
- Go for voluntary deductibles: Bike insurance policy has two types of deductibles. Deductibles are a fraction of claim that you are supposed to pay from your wallet. The first type is mandatory. So, every time you request for the claim, this mandatory portion of the money has to be paid by yourself. The second type of deductible is a compulsory one. This is the amount of money that you have willingly decided to pay from your own pocket at the time of claim and it is called voluntary deductible. This portion has to be higher compared to the mandatory deductible.Let’s say, for your bike insurance policy, you have to pay an obligatory amount of Rs.500 at the time of claim. You select a voluntary deductible of Rs.1,500. So, if a claim of Rs.10,000 has been passed, you will have to pay Rs.2,000 (mandatory + voluntary deductible). The insurance provider will pay the remaining amount of Rs.8,000. Since this scheme reduces the company’s claim liability the company rewards you by giving a premium discount.
As you can see, applying the above techniques whenever your bike insurance has to be renewed will no longer pinch your pocket. You should always keep an eye for such offers and increase your savings.
Kidal Delonix is a contributor to Mr. Hoffman's blog. The views and opinions are entirely his/her own and may not reflect Mr Hoffman's views.
