Owning your own vehicle is a matter of pride for anyone, but if safe driving is not commensurate with that pride, there can be dire consequences, both for the owner and their vehicle. And till recently, except for the fear of injury and material loss, and the fear of causing injury and material loss to the other party, there was hardly anything to motivate people to drive safely. However, last year the Insurance Regulatory and Development Authority of India (IRDAI) made certain changes to the “own motor damage” products of the insurance companies which reward safe driving. Thus, you stand to gain a lot not only in terms of premium on two-wheeler insurance policies but in many other related ways. Here’s how:
Direct impact on two-wheeler or bike insurance
Insurance companies will now calculate bike insurance premiums based on data gathered not only about how safely or rashly you drive but also on the average distance you drive in a specific period. Such data can be gathered in various ways including through something as simple as a mobile app. The people who drive safely will have to pay less premium on the same bike insurance policy compared to someone who tends to drive rashly.
Safe drivers will gain through depreciation rules
When you drive safely, it is reasonable to presume that your two-wheeler will be in a better condition a few years down the line than the two-wheeler of someone who drives rashly, as the latter’s bike is likely to have suffered more through bumps and minor crashes. And the condition of your vehicle not only directly impacts the resale price of your two-wheeler but also attracts less depreciation and, by extension of the same logic, less renewal premium on your bike insurance.
No claims bonus on your bike insurance policy
When you drive safely you tend to cause less wear and tear on your bike, and therefore are more likely to end up not claiming anything from the insurance company from which you have taken your bike insurance. And the insurance companies always reward the people who have made no claims on their insurance policies during the valid period of the policy, when they come up for renewal of their policies at the end of the said valid period. The insurance companies are also more likely to consider covering your two-wheeler for a larger sum if you have demonstrated a tendency to drive safely than otherwise.
Chances of snagging a better policy from another insurance company
Additionally, now with the Insurance Information Bureau of India (IIBI) maintaining a nation-wide data repository for all insurance companies, your driving behavior can be easily accessed by insurance companies other than the one from which you have taken out your bike insurance policy. This can induce other insurance companies to offer safe drivers even more attractive policies than the ones they have. Bharti AXA offers you some of the most attractive bike insurance policies, so do check with them before buying your bike insurance cover.