How to evaluate a Bike Insurance Company?

Getting a new bike is an exciting endeavour. You spend months researching the right power, look and comfort, and finally settle on a choice. But when it comes to choosing an equally important element while buying a new bike, we fail to put in as much effort – getting the right bike insurance policy.
Most of us want to forego that not-so-glamorous process of deciding on the right policy.
However, it is important to choose the right insurance company because they are the ones who will have your back when you are in financial trouble.
Here are some fail-safe ways to choose the right bike insurance company for protecting your bike.

1. Claim settlement ratio – Claim settlement ratio is a significant yardstick in evaluating a bike insurance company. It is the ratio of the number of claims settled to the total number of claims submitted to a company. The higher the claim settlement ratio, the higher will the number of claims settled. This means that the probability of your claim being rejected will be very low.

2. Customer care availability – If you land in an accident in the middle of the night, then having a 24×7 customer care facility for your insurance company becomes impertinent. After seeking immediate help from the necessary officials about the accident, the next step should be intimating your insurance company about the same. The longer it takes for you to reach out to them, the higher the probability of rejecting your claim on the grounds of it. So ensure your company has a 24×7 customer care facility.

Read more: Get a Zero Down Payment Bike Loan

3. NPS Score – The Net Promoter Score is a general scale system used to measure how loyal customers are to a company. Customers will be surveyed on questions like “How happy you are with the service”, “How likely will you recommend the company to others?” on the scale of 1-10. These results are then converted into a larger scale of -100 to +100. Higher the NPS score is, the better their services would be.

4. Online reviews and ratings – If you want to know how the general public feels about the insurance company, go for online reviews and ratings. They are readily available in Google ratings, Facebook ratings and other websites that are solely dedicated to this. Read more through their comments. Make use of online forums like Quora and Google forums to ask questions. Make an informed decision on the feedback received.

5. Network of cashless garages – Most insurance companies have the option for a cashless reimbursement facility wherein you can drop your damaged vehicle in any of the garages that have a tie-up with the company, and the company will directly pay for the repairs on your behalf. This way, you will not have to go through a myriad of procedures to get your IDV reimbursed. The more extensive the network of garages, the higher the probability of having one near you and the easier you will be able to opt for it. In another perspective, a larger network of garages also inadvertently means the company is a credible one.

6. Turnaround Time for claims – Turnaround time for claims is the amount of time it takes for the company to complete processing your claim from the moment you have submitted it. A fast TAT means an efficiently run company. You can easily walk out with the IDV amount and won’t have to hassle much over the process.

7. Availability of add-ons – You can increase the scope of coverage of your existing comprehensive bike insurance policy with add-ons. If your insurer offers an eclectic mixture of such add-ons, it is a green flag. Apart from the usual Zero Depreciation add-on, other add-ons include Return to Invoice cover, Engine and Gearbox protection cover, Breakdown assistance cover etc.

8. Premium vs IDV – The premium that you pay must be well-worth the IDV that you will get in return. Compare the premium to IDV ratio of various insurance companies to get an idea. It should at least fall in a bracket. You must be wary of too low a premium and a similarly high one. The freedom to set the IDV value is another parameter with which you can judge an insurance company.

9. No Claim Bonus amount – No Claim Bonus is the bonus you get for not filing any claims with the insurer during the policy tenure period. For every year that you haven’t filed a claim, you will get either a discount in your premium or an increment in your IDV amount. It will be tough to resist the gravitational charm of an attractive NCB amount.

10. Discount and other perks – An honest company always rewards its loyal customers. Discounts and perks to new customers is a surefire way to gauge a company’s attitude towards its customers. It exhibits a company’s priority of serving customers over making profits.