Most people who love bikes ensure that they select a good brand and model and spend a hefty amount on the purchase. And once they buy a bike, they also choose a suitable two-wheeler insurance policy to protect their bike against damages. However, at times, these damages can be extensive in nature which is why you should know how much you will receive as compensation.
Depending on the nature of the damages, here are two things you can calculate with a two-wheeler insurance premium calculator before filing a claim:
- The IDV before filing a claim for the loss/theft of your bike:
The IDV or Insured Declared Value should be the market value of your bike, based on which your premium payments are calculated. The IDV is the amount you will receive as compensation from your insurance company if your bike is stolen or lost.
Usually, the IDV is calculated when you purchase your bike and want to check for the insurance of your vehicle to get an idea of the premiums. However, with time, your vehicle’s depreciation value will increase, which means that the market value of your bike will decrease. At the time your bike is stolen or lost, you will need to calculate the IDV once again to understand how much compensation you could receive from your insurer.
- The No Claim Bonus (NCB) before filing a claim for damages:
When you buy an insurance policy for your bike, you are entitled to receive a No Claim Bonus (NCB) discount from your insurer if you do not file a claim for damages during the policy term. People mainly calculate the NCB online to check how much discount on the premium they can get by not filing a claim each policy year.
However, another instance where you can calculate the NCB is before you file a claim for damage to your bike. You could do this to get a second opinion on whether:
- you should file the claim and lose the NCB discount in the coming year or,
- pay for the damages out of your own pocket and retain the discount to pay lower premiums next year.
Generally, if the damage is minor, then it is not worth claiming the insurance and losing the discount on your premium. Moreover, if you have accumulated up to 50% of NCB benefits, then you should refrain from filing small claims.
However, do not hesitate to file a claim if you realise that the damages are way too much for you to spend on. After all, this is the reason why people have insurance policies.
Can you use a two-wheeler insurance calculator before filing a third-party claim?
It is difficult to estimate the damages in the case of a third-party claim as the insurance is meant to compensate the affected third-party and not the policyholder. Therefore, when there is third-party damage to a person or a vehicle due to your bike, you cannot gauge the extent of the damage to someone else’s vehicle.
Furthermore, the insurance company will not entertain any claim on your behalf as the third-party agreement states that the cover is meant only for third-party liabilities. However, with a comprehensive bike insurance cover, you will be able to file a claim for damages to your vehicle, yourself and the third party as well.
However, it is extremely important to always have a third-party insurance policy, even though it will not cover damages to your vehicle. This is because having a liability cover is a legal requirement in a country like India that witnesses several bike accidents each year, minor or fatal.
How to use a bike insurance premium calculator?
A bike insurance premium calculator is of primary importance when you are looking for a suitable bike insurance policy online. While this tool is quite useful for first-time policy buyers, even the renewal of your two-wheeler insurance becomes easier with this calculator.
To know how to use a bike insurance premium calculator, you can refer to the steps below:
- Start by selecting your bike’s make and model.
- Next, choose the registered location/state/city of your bike.
- Select the year in which you purchased your two-wheeler.
- Fill in the section that asks if you claimed No Claim Bonus (NCB) in the past policy year
- In the last step, once the details have been filled in, the bike insurance calculator will give you premium quotes for your two-wheeler insurance plan.
The process of buying bike insurance online has become easier, thanks to the use of a bike insurance premium calculator. However, as discussed, a two-wheeler insurance calculator not only helps you calculate the premiums but also the components like IDV and NCB before you file a claim. This shows that a bike insurance calculator is a versatile online tool that has made all insurance-related processes simpler.