Know how bike insurance is calculated

A two-wheeler has become the need for people. Just owning a bike is not sufficient, but you also need to take care of it. And, caring does not only mean regular servicing, but you need to make sure that your bike holds valid bike insurance. But, do you know how it all works? How much can you claim? What is the period for the insurance to keep it valid? What are the things you need to keep in mind to claim the premium, and how do companies calculate the claim amount and on what basis?


Here are few ways through using which general insurance premium for bikes are calculated.


  1. Premium Declared Value – Also known as IDV – Insured Declared Value, is the amount declared by the insurance companies. The sum insured is according to the agreement between the owner and the insurance provider.


  1. Cubic Capacity (cc) of the engine – The premium for bike insurance is calculated according to the cc of the bike. The higher the cubic capacity, the higher will be the premium amount. In the case of regular bikes, the premium is less when compared to bikes having the cubic capacity of 350 and above.


  1. Bike Registration Zone – The premium for bikes also depends on the area where the registration of the bike is done. For example, a bike registered in a metropolitan city like Delhi, Kolkata, Mumbai, etc., the premium amount will be high. It is because in such cities the traffic is heavy and the average distance covered by the bikes is more when compared to that of a smaller town or areas like Pune, Ahmedabad, Nagpur, etc. Location is considered to be an essential factor in premium calculation.


Most insurance companies, we approach, claim to be the best on the same grounds of being genuine and supportive with easy claims. At the same time, these companies also commit to cover all kinds of damages when there is a mishap. With this, it is also essential for the bike owners to know the exact amount of premium charged. There are various ways to do so:


  1. Year of Manufacture – For older bikes, the insurance premium is less when compared to the new ones. As and when the bike keeps getting older, the premium and the claim amount starts to diminish with time. The insured declared value for a bike of the same model and brand purchased now, and after six months, there will be a difference in the premium.


  1. Many companies have the facility to calculate the premium on their websites. To calculate the amount of bike insurance premium manually, you need to have certain documents like the Registration Card, previously purchased insurance copy, etc. ready. Once you have them, log on to the website of the insurance provider and look for the option where they allow the users to calculate the premium manually. You will be asked to key in the model of your bike, make, variant, city of purchase, registration date, etc. The system will check and scrutinize the information and will provide you with apt options to choose the best insurance plan.

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