What is two wheeler insurance?
But when it comes to getting an insurance cover to protect them, their vehicles, and third parties, they seldom give much thought and rather opt for the easiest plan or lowest-premium policy available in the market.
Availing two-wheeler insurance is a must even before you take your vehicle out on the roads. A two-wheeler insurance policy safeguards you against any financial contingencies that may arise in case of accidents. Based on the type of insurance purchased, it would not only insure you against liabilities to any third party involved in case of an accident caused by the two-wheeler, but also give coverage for your vehicle and the owner.
Accidents have more or less become the norm than the exception on Indian roads. Hence, the Indian Road Safety Act and Indian Motor Vehicles Act have made it mandatory for all new vehicles to carry an insurance cover before they run on the roads. Many buyers would choose to spend months, sometimes even years, to figure out their ideal bike or scooter.
However, just like not every finger is the same, every bike or two-wheeler has its own specifications and requirements. Accordingly, the owner should choose the plan that best covers their needs.
Types of two-wheeler insurance
Before buying two-wheeler insurance, it is important to study the different types of cover offered on your vehicle. It’s also important to take a cover that will match yours and your two-wheeler’s needs. Two-wheeler insurance is divided into two types.
Third party insurance cover: According to the Indian Road Safety Act and Indian Motor Vehicles Act, opting for this policy is mandatory before you run your vehicle on the road. It can be taken as a standalone policy or as part of a comprehensive two-wheeler insurance plan.
Any damage to a third party’s property, or injury or death to the third party involved in the accident caused by the insured vehicle, is covered under this plan. This policy offers protection in situations when the third party is uninsured or underinsured.
However, as the name suggests, this type of insurance does not cover damages to your own vehicle or the owner in case of an accident.
- Any claims arising due to the death or injury caused to any third party by the insured vehicle.
- Any damages caused to property of a third party due to accident involving the insured vehicle.
- Third party policy does not include any damages or liabilities accruing to the insured vehicle and its owner.
Comprehensive insurance plan: This policy not only covers death of, injury to, or damages to property of the third party, but also it covers the vehicle and its owner. Hence, it is called comprehensive insurance plan where you get a full coverage to cover most of the risks.
Hence, apart from the third-party insurance, it also covers any damages to your two-wheeler due to accident, natural causes, theft, or other uncontrollable factors.
Therefore, the premium under this cover is higher as it gives you full protection against many risks. The premium varies depending on the age, cubic capacity, IDV (Insured Declared Value) of the vehicle and the area of registration.
- Damages to the property, harm to life, or bodily injury to any third party
- Damages to the vehicle due to natural causes such as flood, lightning, earthquake, and cyclone
- Damages to the vehicle due to accident, unnatural causes such as theft, riot, or during transit by road, rail, or air
- Damages to the owner arising due to accident involving the insured vehicle
- Depreciation of the vehicle
- Driving while intoxicated
- Electrical and mechanical breakdown
- Common wear and tear of the vehicle
- Use by an unauthorised person without a valid driving license
Hence, you can choose either of the above two policies, but make sure you are well-insured to cover any damages arising in case of an accident involving your two-wheeler.
What is the need for Two Wheeler Insurance?
Two wheelers are the most convenient option for daily traveling in India. Public transport like buses may not have the frequency you desire, while other options like cabs, auto rickshaws, or driving your own car may not be cost-effective. On the other hand, having your own two-wheeler is convenient in terms of maneuverability, mileage, and travel time.
However, heavy congestion and perilous road conditions mean that road accidents are frequent and most of them are two-wheeler accidents. This necessitates having two-wheeler insurance in place, which can help recoup some or most of the damages incurred due to such accidents.
Explanation of Two-wheeler Insurance
Two-wheeler insurance protects the policyholder from any losses due to involvement of the insured two-wheeler in any road accidents, theft, robbery of the vehicle, and even in events like natural disasters based on the type of insurance purchased. If the rider is injured in a road accident with the insured two-wheeler, he or she can even get compensation amount for the medical treatment.
Advantages of a Two-wheeler insurance policy
In the recent past, the two-wheeler insurance scenario has drastically changed for the better. With loads of beneficial features attached to two-wheeler policies, insurance companies have also made the purchase of these policies quite smooth and free from many hassles.
Here are some of the major benefits of two-wheeler insurance policies in India:
- Quick and hassle-free policies: With the advent of the new technologies in the financial and banking world, buying insurance for your two-wheeler is now really easy. You immediately get the digital insurance policy document when bought online, and there is no need to wait for days to receive the policy papers.
- Choose the cover according to your requirement: Along with the mandatory covers like protection against damages due to road accidents, you can include other extra protection for the pillion rider, spare parts of the vehicle, etc. Though these additional covers come at a higher premium, it is economical if you compare the expense of the higher premium with the price of the spare parts and accessories of two-wheelers.
- Legal requirement: In India, it is mandatory for every two-wheeler rider to have a liability-only policy, which would cover any damage or loss to any third party or third party’s property in case of accidents.
- No Claim Bonus: If you don’t claim against your insurance policy in the previous periods of insurance, the insurance companies in India reward you with a ’No Claim Bonus‘ or NCB to the rider or the policy holder as an incentive for safe driving.
Two-wheeler insurances are specifically designed to cover any loss or damage of two-wheelers and any physical harm to the rider (insured person) or third parties in case of any unfortunate event. Mishaps like accidents, fire, or earthquake, and even unnatural events like robbery can happen at any point in time without your knowledge. A two-wheeler insurance plan covers your risks in such cases.
Key benefits and features of two wheeler insurance
Owning a two-wheeler can be one of the joyous moments of life but before you drive your new bike or scooter check for the insurance component. You should at least have third party insurance in place which is mandatory as per the Indian Motors Act. Of course you can enhance the protection component and make your two-wheeler insurance broader by opting for a comprehensive insurance plan. Here are some of the key benefits and features of two-wheeler insurance apart from the fact that it is a legal requirement.
Ability to choose between insurance types: You can choose between mandatory third party insurance and comprehensive two-wheeler insurance. A comprehensive policy insures the bike against any damages and theft apart from third party liabilities. Insurers are also offering long term insurance plans which have a tenure period of up to 3 years making bike insurance long term and pocket friendly.
Enhanced protection by various add-ons: Comprehensive two-wheeler insurance can be more even more protective by opting for various add-on covers. For example a zero depreciation cover, protection for the pillion rider or return to invoice cover can mean enhanced protection for your bike.
Availability of a personal accident cover: All comprehensive two-wheeler insurance plans come with a personal accident cover for the rider for Rs. 1 Lakhs. You can make use of additional rider or add-on to enhance the personal accident cover for the pillion rider making your insurance doubly protective for you as well as your bike or scooter.
Online instant policy: With a rise in the popularity of two-wheeler insurance more and more
General insurance companies are offering insurance for two-wheelers. You can easily purchase an insurance plan for your bike or scooter online without having to worry about physical inspection of your two-wheeler. Insurers offer instant policy online making buying two-wheeler insurance fast, easy and convenient.
Access to various discounts: Two wheeler insurance companies offer various discounts like a no claim bonus discount or discount on premiums for members of automobile associations or when using enhanced safety mechanisms like advanced anti theft devices for your bike.
Benefits and features of two-wheeler insurance at a glance
- 3rd party two wheeler insurance is mandatory as per the Indian Motors Act.
- Opting for comprehensive two-wheeler insurance offers enhanced protection against damages and theft.
- Comprehensive two-wheeler insurance offers a personal accident cover of Rs. 1 Lakhs for the driver.
- The personal accident cover can be enhanced for the pillion rider by opting for appropriate insurance add-on.
- You can opt for a long term insurance plan with policy tenure of up to 3 years locking premium and IDV for the policy term.
- There are various discounts on offer when seeking a comprehensive insurance plan making insurance pocket friendly and easy.
- Two-wheeler insurance can be purchased online with ease without worrying about physical inspection of the bike or scooter.
- Two-wheeler insurance gives you and enhanced sense of security ensuring you to drive confidently.
Top 10 two-wheeler insurance companiese
It is mandatory to take an insurance policy for your two-wheeler to cover liabilities to third parties before you drive your vehicle on the roads in India. There are many insurance companies offering cover for two-wheelers, each offering a plethora of options, features, and add-ons.
Here are the top 10 two-wheeler insurances companies offering both ‘liability only’ cover and comprehensive insurance plans.
1. Bajaj Allianz: This insurance provider has received AAA rating from ICRA which recognises the company for its highest claim paying ability. It offers both ‘Liability Only’ and comprehensive plan. It offers both one-year and three-year coverage period. It also offers zero depreciation cover.
2. TATA AIG Insurance: They offer different types of two-wheeler insurance policies depending on the needs and requirements of the owner. The company provides auto-secure two-wheeler package or long-term policy depending on the requirements. It also offers add-on covers for two wheelers.
3. Reliance General Insurance: This company claims to give you up to 40% discount on two-wheeler (bike & scooter) insurance premium amount. They also have 159 network garages to use cashless facility. Their two-wheeler insurance starts at Rs 3 per day.
4. The Oriental Insurance Co. Ltd: This government insurance company deals in various projects such as power plants, petrochemical, steel and chemical plants. Under two-wheeler insurance, it offers both Liability Only and Comprehensive Plan. It also offers various add-on covers on extra premium. It also offers coverage at shorter duration of less than a year.
5. The New India Assurance Co. Ltd: This company was founded by Sir Dorabji Tata in 1919 and provides a range of policies across all sectors. It offers insurance on all types of vehicles that ply on roads. It offers both the Liability Only and Comprehensive cover under two-wheeler insurance. It also offers add-on covers such as Nil Depreciation Cover for two-wheelers.
6. SBI General Insurance: This is a much sought after insurance provider as it provides coverage to 56 cities pan India. The company offers long-term two-wheeler policy for two or three years with discounted premium. It offers both Liability Only and Comprehensive cover with bonus packages.
7. Bharti AXA: This insurance policy service provider offers a rather unique feature in its two-wheeler insurance policy. It offers a compulsory personal accident cover for owner-driver for both third-party and comprehensive plans. They have over 2500 cashless garages across India and 79 branches across India.
8. ICICI Lombard: This insurance company has a wide reach, providing coverage to business, personal, and project liabilities across rural as well as urban areas. It claims to protect more than 60 Lakhs two-wheelers every year. It provides personal accident cover of Rs 1 Lakhs to the rider while travelling, mounting, or dismounting the vehicle.
9. HDFC Ergo Insurance: It offers both the Liability Only and Comprehensive Plans, and offers various features on each of them. It claims 94% claim settlement ratio and one can buy insurance for up to three years in a single transaction.
10. National Insurance Company Limited: It gives coverage limit of Rs 7.5 Lakhs on damages to third party. It also offers free 24*7 road side assistance and various add-on covers such as zero depreciation, medical, and accessories cover.
There are other insurance providers that are equally good and offer their own set of features and add-ons. Study the market and choose the provider who suits your insurance needs the most.
What is the right IDV (Insured Declared value) for my two-wheeler?
You have purchased your favourite two-wheeler and planning to buy an insurance policy to cover any damages that may happen to third party or the owner or the vehicle itself. However, you get stuck at IDV – Insured Declared Value – for your two-wheeler when you plan to purchase an insurance policy?
What is this IDV? - It is the maximum sum assured that the insurer will pay you as compensation in case of theft or damage of the vehicle beyond repair. In short, it’s the market value of the vehicle that you are entitled to receive if your vehicle is stolen or damaged beyond repair.
How is it calculated? - It is calculated on the selling price of the two-wheeler in the showroom or the manufacturer’s listed selling price minus depreciation of the vehicle. However, the registration and insurance costs are excluded when calculating IDV. Besides, if any accessory is not factory-fitted, then a separate IDV is calculated for them to determine whether it will require an insurance cover too.
It’s important to know the depreciation schedule at which the IDV will be calculated. Here they are:
|Age of two-wheelers
Please note that for two-wheelers above 5 years, the IDV is calculated based on a mutual agreement between the insurer and the insured. Surveyors, car dealers assess the vehicle’s condition to determine the IDV of old vehicles instead of following the regular depreciation charts.
Why IDV and choosing the right value is important?
IDV will give you the sum assured that the insurer will pay you if your vehicle is stolen or suffers total damage. Hence, selecting the right IDV is important. It is important to choose an IDV which is close to market value of the car.
What if you select lower IDV?
Lower IDV will charge you less premium. But if you deliberately choose a lower IDV than the market value so that you have to pay low premium, then be prepared to pay from your pocket if the accidental expenses on your vehicle is more than the sum assured on IDV. You should not fall for this trap in order to save a few hundred bucks on premium. Instead, choose the right IDV so that you are adequately compensated in case of theft or total damage of your two-wheeler.
What if you select a higher IDV?
You might be tempted to go for higher IDV thinking you will get a higher claim in case of theft or total loss of the vehicle. Also, you will be under the impression that a higher IDV will give you good returns if you plan to sell your vehicle. But that’s just a bubble because you need to remember that it is also the type of loss that will determine your claim amount even though the latter will be dependent on IDV.
Hence, choosing the correct IDV is of utmost importance when buying a two-wheeler insurance policy so that you are adequately compensated in case of theft or total damage to your vehicle.
Useful tips to buy two-wheeler insurance.
You might have spent days and months to save for your favourite bike or scooter. But once you reach the showroom, you realise there is so much paperwork to be done before you can ride your it on the road. And an important and mandatory thing to do before you ride your two-wheeler on the road is to get an insurance cover for your vehicle.
According to the Indian Road Safety Act and Indian Motor Vehicles Act, it is mandatory to buy a policy that will cover liabilities such as damages to life, injury or property of third party. However, for the layman, insurance can be an alien concept and hence, he or she might need some tips on how to buy a two-wheeler insurance policy. Here are some tips to purchase a two-wheeler insurance plan.
Choose which plan to buy: There are two types of two-wheeler insurance – ‘Liability Only’ and Comprehensive plan. ‘Liability Only’ plan will cover damages to life, injury or property of third party. Comprehensive plan will give you additional cover against damages to life of owner and vehicle apart from the third party. While a comprehensive coverage is must for a new two-wheeler, for old vehicles you can opt only a ‘Liability Only’ cover if you want to save on premium.
Higher the cubic capacity (cc) of your bike, higher will be the premium: There are three categories of vehicles as per cubic capacity - 0-150CC, 150-350CC, 350CC and above. If your cubic capacity of your bike rises, premium will increase too. So, choose your vehicle accordingly if you are willing to pay higher premiums for it.
Choose add-on coverage meeting your requirements: If you think you or your vehicle are at risk against certain factors, then choose the specific add-on coverage. So, you can opt for collision coverage, fire, theft and vandalism cover, insurance for the pillion rider depending on your requirements.
Choose your IDV wisely: IDV or Insured Declared Value is the market value of the vehicle less depreciation. It remains fixed during the term of the policy. So, you should choose an IDV closer to the market rate. Do not choose a lower IDV to save on premiums. And do no choose a higher IDV to get a higher claim in case of theft or total damage of the vehicle.
Uninsured motorist cover: You might choose to go for this cover to cover any damages due to accident with an uninsured rider. Without this cover, you won’t be able to get any claim if you meet with an accident with the uninsured rider.
Check for cashless facility: Many insurance providers give cashless facility with over 1000 garages. This will help reduce the burden of reimbursement claims where you need to pay upfront and then run after the insurance companies to get the bills reimbursed.
Check for third-party comparison sites to buy the best insurance for your vehicle: There are so many insurance providers in the market. Hence, choosing the right one will be difficult. In such a situation, online insurance marketplaces help to compare the coverage and premium costs of all companies and to select the best insurance plan for your two-wheeler.
It’s important to study an insurance provider and their various plans before opting for a two-wheeler policy as it will provide the safety net to you and your vehicle.
Most effective ways to reduce your two-wheeler insurance premium.
If you don’t buy products on discounted rates, they are likely to miss out saving some money. This is true in case of insurance also.
There are a number of ways you can buy a comprehensive insurance cover for your two wheeler at a premium comparable to what is required for a bare basic Third party cover which is the minimum legal requirement in India.
But the trickiest part is that you should know how to do it. This is because unlike retail, no one will announce discounts for insurance.
Start with increased deductible
Deductible, in insurance parlance, is what you propose to pay during a claim. But you have to hit a right balance there. The greed of a low premium may egg you on to raise the deductible to an unpractical proportion of the claim you may need. Accidents happen to the safest of the riders and one never knows when the need of claim may arise.
Keep Your DL (Driving License) spotless:
A clean DL, year after year, will ensure cumulative NCB’s. That itself is a big premium reducer. And there’s more to it. No Claim Bonuses are person specific, not vehicle specific, which means that even if you sell your bike, say after five years, you can get the benefit of NCB accrued to you transferred to your new policy.
Avoid Minor Claims:
This is actually a corollary to the above proposition. It is obvious, that a minor dent or a broken tail light can be taken care of out of one’s own purse. You don’t want to leverage your NCB advantage for such trifles.
Anti-theft Aids and Security Implements:
Most insurers will offer a lower premium for a two-wheeler installed with safety locks, handle locks, gear locks or anti-theft alarms. Check out with your insurer whether they do it or not.
Choice of your Ride:
Yes, the model, make, cubic capacity, mileage – all these things go on to decide your IDV and in turn, your premium. The fancier, the chunkier, the more extraordinary, the greater fuel guzzler, the more expensive bikes are insured at greater premiums. That is to say, if you can be smart with your choice of bike, you can save a lot in terms of premium there.
A word of caution
Impediments and Exclusions: It is always a safe bet to read this part of your policy proposal before giving in to the lure of a low premium. Find out the conditions and situations when your insurer will NOT pay the claim.
- Did you know most insurers will insure your motorized vehicle for less if it is bereft of a pillion? If you’re a lone ranger why not get that load off your back?
- Your mode of payment of premium may also save you precious bucks. Check with your insurers for discount on an upfront payment, a lump sum payment or an annual payment of premiums.
- You can also check with your Life/ Health Insurance Company whether they offer a package deal? Oftentimes they will discount you in your two wheeler insurance premium, if you’re already their valued customer.
Don’t buy a comprehensive cover; go for a Third Party cover instead: The law of this land requires you to buy at least a third party cover for you two-wheeler. You can throw caution to the winds and complete the formality. The downside of this is obvious. You don’t get anything in case of mishaps and accidents. (Not advisable).
Compare, Compare, Compare: The advantage of comparing policies online can’t be stressed enough. The internet abounds with listicles, tables, comparisons and such like tools to enable you choose a suitable policy with affordable premiums for your two-wheeler. Just dig in those resources there and chances are you’ll find your best fit.
A lot of industry experts warn against premium bargaining mentality. They say it defeats the very purpose of insurance. That is very true; you want insurance against mishaps – minor and major. So it is not always a great idea to go pick the lowest bidder.
What is break in policy renewal in case of a Two Wheeler policy.
Forgetting something is human but forgetting your insurance renewal is serious. A recent report by IRDAI reveals a shocking fact that over 75% of two-wheeler owners are not insured. This can be a temporary break-in period after expiry of one policy and subsequent renewal or a deliberate non-renewal of policy due to ignorance of its consequences.
So what is break-in-period in a two wheeler insurance?
The mandatory motor insurance policy for two-wheelers has to be renewed annually. Today there are long term two wheeler policies, which are valid up to 3 years.
A motor insurance policy is valid from the midnight of the date of issuance till the previous day of the subsequent year. For example, if you renew your policy of Jan 1st of 2017, it will be valid from the midnight of Jan 1st till midnight of December 31st 2017. In this case if you are renewing the policy on Jan1st 2018, it will be valid from the midnight of Jan 1st 2018 only and the hours between the midnight of December 31st 2017 and midnight of Jan 1st 2017 is considered as break in period of the policy. The insurance company will not be liable to pay you for claims arising during this break-in period, even if it is an hour.
Is there a specific time window to renew a lapsed policy?
There is no specific timeframe for renewing a lapsed policy. The sooner you renew it, the better it is.
You can renew a lapsed policy at any time, but there are certain conditions as below:
- The insurance company will not pay you any claim against a lapsed policy
- To renew a lapsed policy physical inspection of the vehicle by the company required
- If a policy is lapsed beyond 90 days, the policyholder will lose his No Claim Bonus (NCB), which is a rebate offered to him by the insurance company for every claim free year and thereby have to pay a higher premium at the time of renewal.
- There are penalties as per Motor Vehicle Act for driving without valid insurance policy.
You are also subject to insurance inspection, for which an insurance surveyor will be appointed and subject to his approval.
How can you renew your lapsed policy?
Many insurance service companies are rendering instant renewal service for lapsed policies both online and offline, offering a smooth experience. It is quick and needs only few clicks to be able to do the renewal. When you log in to your insurer’s website, or in online insurance marketplaces, you can provide the key information and choose the best insurance cover for the vehicle. There are options to avail add-on cover too.
The lapsed policy owner has an option to approach an insurance agent as well but if you choose to do it online, you have an opportunity buy an insurance policy in few minutes. IRDAI now gives an option to buy long-term insurance for two-wheelers for 3 yrs term; it is a good way to get rid of quick renewals if one year is short for you.
What is a cover note for two wheeler insurance? Is it a valid insurance document?
While buying two-wheeler insurance online is swift and easy, it may still take some time for you to get your hands on the final insurance registration copy. So does this mean your bike is not insured till the time you have insurance certificate in your hand? Not quite as insurance companies issue what is known as a ‘cover note’ as soon as you pay your premium for your bike insurance.
Understanding a cover note for your bike insurance: Cover note is like a temporary acknowledgement by the insurance company which is fully acknowledged by the insurer as per your insurance policy. The reason why insurers issue a cover note is that it may take them some time to underwrite the motor insurance policy you may have opted.
Now since Atleast a third party insurance is mandatory to drive your bike on the road, insurers issue a cover note which is a valid document for your bike insurance. The validity of cover notes can vary from one insurer to another. Usually the validity of a cover note ranges from 15 days to 60 days.
Once your insurer issues you a cover note for your bike insurance make sure to check the make and registration details of your two-wheeler. Also check the year of manufacture, engine and chassis number, cubic capacity and insured declared value (IDV) to avoid any discrepancies in the original policy document.
Cover note and validity concerns: A cover note is a completely valid document till its validity date. Should you need to make a claim before your insurer issues a full insurance certificate, you can seek claims on basis of a cover note. The claims can also be exercises on a cover note even after the validity deadline should the insurer fail to send you the complete insurance policy certification on time.
Everything you need to know about cover note
- Cover note is a temporary document issued by the insurer confirming your two-wheeler insurance.
- Some insurers also issue a cover note during the course of negotiations to provide provisional cover for your bike or two-wheeler.
- The cover note is valid from 15 to 60 days depending on the insurer before which the insurer sends you a physical copy of your bike’s insurance certificate.
- You can keep the cover note with your bike documents as it is valid for any traffic police checking.
- Cover note is a simple documents and not lists detailed terms and conditions of your bike insurance policy.
- Once a cover note is issued, your bike is insured and you do not have to worry about any lack of protection.
- The onus is on the insurer to ensure you get an insurance certificate before the expiry of the cover note.
- You can send a reminder to the insurer by getting in touch with its customer care department should it not send you the insurance certificate in time.
While cover note offers you optimum protection as per your bike insurance policy, it is a good idea to follow up with your insurer to get the original policy document at the earliest.
Benefits of renewing your two wheeler insurance policy on time.
Benefits of renewing your two wheeler insurance policy on time
Two wheeler is a prized asset in many Indian households; in fact small town prefers motorbike over a car. However, ensuring protection of their two wheeler against a number of unforeseen events such as accidents, burglary, theft and a lot more is the prime responsibility of the owner.
Though it is mandatory to have a two wheeler insurance as per Motor Vehicle Act, in order to continue the coverage and benefits under your existing bike insurance policy, make sure you kick-start with the renewal procedure well in time. Following are the benefits that you would enjoy on renewal of your policy.
a) Protection against natural calamities
It is always safe to remain insured when it comes to renewal of your bike’s insurance policy. Natural disasters like cyclone, fire, earthquake, flood, landslide etc are very much unpredictable and can create havoc to your dream vehicle. Renewed insurance could save you from heavy expenses that may get incurred due to lapse of the policy.
b) Protection against man made calamities
In case your policy expires, it is advisable to get it renewed as it would shield your two wheeler from various man made calamities like theft, riots, burglary, strike, accidents, terrorist attacks etc. Owing to the high cost of repairing, servicing or replacement, it makes almost impossible to get things done all from scratch – a timely renewed policy acts as oxygen to such situation.
c) Protection against litigation
Third party insurance, which is compulsory as per Indian law, ensures the owner of the insured vehicle is free from any third party liability that may arise in any event of an accident where the insured vehicle is involved. Renewed policy takes care of the expense incurred for fixing the damages to two wheeler vehicle, person or property in the vicinity. Even your expenses to fight any legal case arising from vehicle accident, gets covered in the policy.
d) Being eligible to discounts and perks
Timely renewal of your existing two wheeler policy makes you eligible for NCB (No Claim Bonus). NCB can be claimed on renewals in the event where no claims are made during the previous policy period. So, eventually you end up paying higher premium in case NCB is denied due to lapsed policy.
e) Having peace of mind
Mental peace is something, which you get at the end of the day from a renewed policy. While the insurer secures your vehicle you can remain stress free and drive your dream bike. It gives you confidence to drive on the road and past through those traffic check posts by showing valid insurance papers; else you end up paying a hefty fine or adopt other routes to avoid the traffic police.
These days its hassle free to get your existing two wheeler insurance renewed. You should just keep in mind the expiry date and renew it well in advance to avoid any late payment charges or fine. Online policy renewal has cut down the time consumed completely from the tedious process. However, it is recommended to compare quotes online before renewing your existing policy with your current insurer to get the best deal. You might want to get certain add-on extra this year, which you might have omitted due to budgetary constraints last year. Also, read the terms and conditions carefully before signing on the dotted line of your policy renewal papers.
Top 10 Two-Wheeler Insurance Plans
With a rise in the number of general insurance companies offering two-wheeler insurance, bike owners today are spoilt for choice when choosing an apt insurer. Comparison of insurance quotes from multiple insurers along with policy inclusions-exclusions and claim settlement ratios should be done to zero is on the most suitable insurance plan for your bike or two-wheeler. Here is a look at ten of the most popular two-wheeler insurance plans offering both third party and comprehensive insurance.
1: ICICI Lombard two-wheeler insurance
ICICI Lombard two-wheeler insurance plan is one of the most popular bike insurance plans offering protection to almost 60 Lakhs two-wheelers every year. The policy comes with a renewal option of 1, 2 or 3 years making it apt for all policyholders including ones looking for a long term insurance. The policy offers a protective cover against loss or damage of the vehicle against natural calamities like flood, fires etc as well as manmade calamities like theft or damage in transit. ICICI Lombard two-wheeler insurance provides a personal accident cover of Rs. 1 Lakhs for the driver. The same is available for the pillion rider as well through an add-on cover. ICICI Lombard has a networked garage exceeding 2150 pan India making it a popular cashless policy.
2: HDFC Ergo Two Wheeler Insurance
HDFC Ergo Two Wheeler Insurance offers both third party insurance and comprehensive policy for your bike’s optimal protection. HDFC ERGO’s comprehensive bike insurance comes with a three year worry free long term policy for two-wheelers. Irrespective of the claims taken during policy tenure, HDFC ERGO’s long term policy ensures the ‘No Claim Bonus’ discount remains protected during entire policy tenure. HDFC ERGO with its 24x7 claim assistance by rained in-house insurance experts and a 94% claim settlement ratio is one of the go to insurer for many two wheeler owners.
3: Bajaj Allianz two-wheeler Insurance
Bajaj Allianz two-wheeler Insurance offers a 3 year long term policy for two-wheelers with a transfer up to 50% of the current No Claim Bonus from any other insurer for online purchase. The policy covers loss or damage to the two-wheeler due to natural calamities and theft. The policy offers a personal accident cover of Rs. 1 Lakhs for the driver with an option to upgrade the personal accident cover fro pillion by opting for a rider. Any loss due to depreciation or normal wear and tear and general ageing of the vehicle is excluded in the policy. Bajaj Allianz offers 24X7 customer support with SMS updates for all claims.
4: Tata AIG two-wheeler insurance
Tata AIG two-wheeler insurance offers you to choose from its annual two-wheeler insurance plan and a long term insurance plan valid for 3 year tenure. Tata AIG offers coverage for all third party liabilities along with loss or damage on account of accident or calamities like fire or flooding. Users can choose from a host of policy add-ons including the likes of NCB protection, depreciation reimbursement, key replacement, return to invoice and protection for pillion rider. Tata AIG also offers a liability only policy for your two-wheeler as per the provisions of Motor Vehicle Act 1988.
5: Reliance General Insurance two-wheeler insurance
Reliance General Insurance two-wheeler insurance policy offers both third party as well as comprehensive policies for optimum protection of your bike. Reliance two-wheeler insurance comes with a facility of availing cashless facility across 159 network garages pan India. The policy offers Nil Depreciation Cover along with a personal accident bundle cover to protecting both the rider as well as the pillion rider against accidents with a capital sum assured of Rs. 5 Lakhs.
6: New India Assurance two-wheeler insurance plan
If you are seeking for two-wheeler insurance from a government owned insurer, the New India Assurance co. Ltd. offers a popular protection plan for your needs. Offering both liability only and a packaged policy which is comprehensive bike insurance, New India Assurance two-wheeler policy offers claim options as both reimbursement and cashless insurance with networked garages pan India. The policy is also linked to the central government’s Solatium Fund Scheme providing a compensation between Rs. 12,500 to Rs. 25,000 involved in any "Hit and Run " motor accident.
7: SBI General insurance-Two-wheeler insurance
SBI General insurance offers customized price based two-wheeler insurance with discounts for policyholders between the age of 25 and 55. The insurer also offers additional discounts on premium for continued insurance without a break. Offering both third party cover and a comprehensive cover, SBI General's Two Wheeler Package Policy comes with a personal accident cover of Rs. 1 Lakhs for individual owners holding a valid driving license. Normal wear and tear, general ageing of the vehicle and depreciation or any consequential losses is excluded from the policy cover.
8: National Insurance Two Wheeler Insurance
National Insurance two-wheeler insurance plan offers both liabilities alone cover and a comprehensive cover depending on the needs of the bike owner. The third party property damages cover on offer are up to Rs. 7.5 Lakhs while protecting the bike against any natural and manmade calamities including theft. Any consequential losses, wear and tear, mechanical or electrical breakdown, failures or breakages are excluded from the policy cover.
9: IFFCO Tokio Two Wheeler Insurance
IFFCO Tokio Two Wheeler Insurance offers protection against third party liabilities as well as a comprehensive cover protecting against losses due to natural or manmade calamities. The policyholder does not have to spend money for repairs upfront and can avail the services of cashless claim facility available at multiple cashless garage networks across India. IFFCO Tokio Two Wheeler Insurance comes with a personal accident insurance cover of Rs. 1 Lakhs for driver with the option of an add-on for protection of the pillion rider.
10: Bharti AXA Two Wheeler Insurance
With a network of over 2500+ cashless garages pan India, Bharti AXA Two Wheeler Insurance is a popular two-wheeler insurance offering both liabilities only and comprehensive cover. The comprehensive policy covers financial looses for damaged and stolen bike with a 24/7 claim assistance with a strong customer support. With over 79 Branches across India and 4.2 million policies, Bharti AXA two-wheeler insurance offers add-ons including personal accident cover for occupants along with a zero depreciation cover. Premium discounts are offered for bike owners who are member of the Automobile Association of India (AAI) or have installed anti-theft devices that are approved by the Automotive Research Association of India (ARAI).
What is a comprehensive & liability only cover for two wheelers
Two wheeler is the most preferred form of commuting for mass Indian for quick mobility and ease. Your motorcycles, scooters, etc can turn out to be even more expensive if it is not insured under right kind of motor insurance policy.
Like any other financial cover, a two wheeler insurance plan protects from any accidental damage, theft and third party liability. In India, motor insurance has been mandated by Motor Vehicle Act, thus if someone is caught riding an uninsured bike, motorcycle, scooter; he/she might have to face legal procedures.
Before availing two wheeler insurance, having clarity on their types is a must. Basically it’s of two types:
- 1. Liability Only cover
- 2. Comprehensive cover
Liability Only cover : This policy is also known as ‘Act Only policy’ and is mandatory as per Indian law. It’s a bare minimum and basic policy that covers against property damage, loss, death or bodily injury to a third party in any unfortunate event of an accident caused by the insured two wheeler. The bike owner is also covered under this policy. This cover gives you a respite when a third party sustains fatal or non-fatal injuries, or his/her property gets damaged due to your vehicle.
Comprehensive cover : This policy is also know as ‘Package policy’ and covers almost everything which a motorbike owner would need. Over and above the basic policy, this one covers any loss or damage caused to the two wheeler due to any natural disaster and/or manmade calamities. As the name suggests, this policy gives you a comprehensive coverage option.
This cover shields your vehicle from unpredictable natural disasters like cyclone, fire, earthquake, flood, landslide etc that creates havoc and various man made calamities like theft, riots, burglary, strike, accidents, terrorist attacks etc.
Comprehensive cover also provides additional accidental cover. Two wheelers are vulnerable to fatal accidents that might cause temporary or permanent disability – this cover includes compensation for such damages when you are riding it, mounting or dismounting it. In some policies, you also get pillion rider or your co-passenger cover.
Apart from this, many add-ons and options can be further attached to the comprehensive plan as per policy holders’ requirement and budget. More you have add-ons, your policy becomes expensive accordingly, and however that comes with a wholesome protection of you and your vehicle, along with the accessories.
There are certain factors that determines the premium of a Comprehensive cover and they are mainly –
- Insured declared value
- Engine capacity
- Age and gender of the rider
- Place of vehicle registration
- No claim bonus
It is vital to pickup the right policy for your safety and your vehicle’s up keep. And hence buy from IRDA approved insurers. It can be bought online or offline, however opting for the right sum insured ensures that you are fully covered against all losses or damages as applicable under the policy.
What are Add on / Optional Covers in TW Insurance
Comprehensive insurance cover for your two-wheeler is always best to go for. No matter how cheap the third party insurance cover looks like, it is always recommended to have a wholesome cover, that will shield you during your worst days which might come in form of natural disaster or man-made calamities.
Every insurer offers some beneficial add-ons to the comprehensive policy to beautify its appeal towards the policy buyers. However, these add-ons cannot be ignore and based on your requirement it can be evaluated and availed for an effective cover of your dream motorbike.
Here are some of the add-ons that you can avail with your two wheeler insurance policy by paying some extras.
a) Enhanced personal accident cover
The figures of daily road crash cases are horrifying, they are fatal and 25% of such road accident deaths are associated with two wheelers. An accident cover acts as a saviour during crisis. The owner / driver will be compensated under this cover in case of accidental death and or permanent total disability. You can increase the standard inbuilt personal accident cover of Rs.2 Lakhs, or opt for accident cover for all passengers. The Motor Accident Claims Tribunal (MACT) decides the amount to be paid to the family of deceased.
b) Zero Depreciation cover
This option can be handy to cover any costs incurred due to repairing and servicing. Bike needs utmost care and should be serviced and maintained for flawless functioning. But bike owner’s pocket burns when it comes to replacement of spare parts and any other depreciation costs involved. With this add-on, you get complete cover for the invoice value of the vehicle without considering depreciation
e) Invoice price cover
To get complete coverage for total loss of your motorbike, you need to tag along Invoice Price Coverage with your comprehensive bike insurance, so that you can purchase another one with it. Or if the damage of your bike is beyond repair, then the insurance company will reimburse the invoice value of the vehicle along with the cost of registration, road tax and insurance; all under this add-on.
NCB protection cover: ‘No Claim Bonus’ (NCB) is an incentive offered by insurers for safe drivers. There may be times when you need to claim insurance but may result in paying higher premium upon renewal due to NCB denial. With NCB protection cover add-on, you can lodge claims up to a specific amount and still enjoy NCB at the time of renewal.
Quick road assistance cover: What if you are met with a break down at an odd hour or at a remote location? With quick road assistance add-on, you can seek claims for payment for any fuel assistance, cab ride, or accommodation benefits in such situations.
Key Replacement Compensation: Misplacing your keys or getting key stolen is not very uncommon. In such cases if the insurer compensate you for the cost of replacing your key is a relief, saving you from some unwanted cost. In case of a theft, however, you will have to produce the FIR copy to get compensation.
Medical expenses: Medical expenses are one the most killing aspect in case of an accident. You might have a health insurance, but your two-wheeler policy can give you some additional relief to your financial burden, if opting for this add-on.
Get these add-ons attached to your comprehensive policy to get a better cover. But then be mindful about the factor that doesn’t cover injuries caused due to pre-existing injuries or disabilities, riding under the influence of alcohol or drugs, mental instability, participating in hazardous sports or any other criminal act.
How to Calculate Two-wheeler insurance Premium?
Looking to buy insurance for your bike but wondering how much should be your insurance premium charges?
Depending on the type of bike and the kind of insurance cover you are seeking, insurance companies fix the final premium amount for the insurance of your vehicle. Having a high end sports bike for example, can mean a higher insurance premium as compared to a regular scooter or bike.
Here are some of the core factors that insurers take into account when determining the final insurance premium amount for your two-wheeler.
The details of the two wheeler including the manufacturer, model, age of the vehicle and cubic capacity of the vehicle play a role in determining the final premium for two wheeler insurance. Since it is mandatory for every vehicle to have atleast a third party insurance, the third party insurance rates as determined by IRDA take into account all the factors listed above.
Calculation of final premium account takes into account the geographic location of the bike and its owner. Since some cities are earmarked to have higher risks for insurance companies the premium charges are higher compared to lower risk centers. IRDA regulations have divided India into 2 zones namely zone A and Zone B depending on the risk faced by vehicle owners. The cities of Mumbai, New Delhi, Bangalore, Chennai, Kolkata Ahmedabad, Hyderabad and Pune are in Zone A while all other cities come under Zone B.
Insured Declared Value:
IDV or Insured Declared Value is the maximum amount that you can claim under a vehicle insurance policy. Depreciation percentage as listed by IRDA is taken into account to ascertain the final insured declared value of the vehicle.
Type of covers:
Vehicle insurance in India is classified into two types as third party insurance and comprehensive insurance. Third party insurance is compulsory for all vehicles including cars and 2 wheelers as per the Motors Act. Since third party insurance offers limited protection and covers only for a liability for third party damages, they are cheaper as compared to more comprehensive insurance plan.
Add on covers
When choosing insurance for your bike, it you opt for any additional riders or add-on covers the total premium of your bike insurance increases. Depending on the type of cover you may need or opt for as per your risk factors, the insurance company finalizes the premium charges.
No claim bonus
Insurance companies offer all policyholders the benefit of a No Claim Bonus discount. NCB discounts are offered when a policyholder files for no claims for a fixed number of years. Depending on the NCB bonus on offer by the insurer and the number of years of no claims, NCB bonus can go as high as 50%.
Insurance companies offer a service to you as a policyholder and hence all insurance policies offer a service tax component. The service tax component is fixed at 18% with the introduction of goods and service tax or GST.
Two Wheeler insurance premiums at a glance
- Bike manufacturer and model plays an intrinsic role in determining the final premium amount.
- The age of the vehicle is used to determine the final insured declared value or IDV of a 2 wheeler after accounting for depreciation.
- The premium amount for 3rd party insurance is fixed by IRDA for every financial year.
- Comprehensive insurance offering more protection has a higher premium than 3rd party insurance.
- Add on covers like zero deductibles or engine protection cover increase the overall insurance premium of your 2 wheeler policy.
- Use of security features like anti theft devices can lead to discount in insurance premium.
- The overall premium estimate can be broadly categorized as IDV of the vehicle * age of the bike – NCB + the taxation component.
All about two wheeler claim procedure
As the insurance sector is getting bigger, companies today are vying to serve customers with the best of products and services. With increasing ease with which companies are willing to assist the customer, the days of claim settlement that were riddled with hassles and delay are over now. The process of getting a claim for a two wheeler is now simple and involves very few procedures, provided all the relevant document are provided.
Let’s look at the process of getting your claim settled for a two wheeler insurance and the steps involved.
The process would depend whether the claim is cashless or reimbursable.
The basic documents required for a claim intimation
- Original claim form duly filled and signed by the insured
- Copy of valid vehicle Registration Certificate (R.C.)
- A true copy of police report / FIR, in the case of any injury to occupants or TP, theft, property damage & malicious activity.
- Copy of valid Driving License (D.L)
- Sometimes one may need to submit KYC documents (Address Proof as per policy & ID proof) for liability exceeding one Lakhs.
The process of claim settlement is a bit different for cashless and reimbursable claim let look at how to go about the same
Process for Cashless Claim
Step 1: The first step is to register the claim by either calling the helpline of the company or sending them a mail. One can also call the local representative but it is always advisable to register the claim yourself.
Step 2: Send the vehicle to the networked garage and submit the above-mentioned documents. The surveyor will check the documents at the garage
Step3: Once the surveyor is satisfied with the documents, a work order would be issued to the garage.
Step 4: Once the repairs are complete, the company would issue a delivery order and the garage would release the vehicle after making one sign a satisfaction voucher.
Process for reimbursable claim
Step 1: Register the claim as mentioned above
Step 2: Submit the documents to the surveyor for inspection
Step 3: The surveyor gives a work order to go ahead and do the repairs
Step 4: The garage would give you a repairing bill & money receipt which is to be submitted to the insurance CO. along with discharge voucher duly signed by the Insured ONLY
Step 5: The company settles the bill and reimburses the amount by check or transfer to one’s bank account
For Theft cases
The most important step is to lodge a FIR with the police this step is must once you have done this then inform the company and the RTO of the same
The following documents are required
- Original Certificate/Policy Document
- Original Registration Book, with Theft endorsement from concerned RTO, and tax payment receipt
- All the sets of keys/service booklets/Warranty card
- Police Panchanama / FIR and final investigation report/JMFC report
- Acknowledged copy of letter address to RTO intimating theft and making vehicle "NON-USE"
One should approach the claim process with ease and an open mind. The company and all the other agencies involved are sensitized to help you and the only thing that is required is to complete the documentation and follow the laid down procedure.
Documents needed to make a claim under two-wheeler insurance policy
Buying an insurance plan for your two-wheeler is the best way to safeguard yourself against any liabilities that may arise in case of an accident involving your vehicle. You can choose either third party insurance cover or comprehensive insurance policy for your vehicle. Remember that it is mandatory to take a policy that covers liabilities such as death, injury, or damages to the property of a third party, according to the Indian Road Safety Act and Indian Motor Vehicles Act.
After the insurance cover is taken, you can drive on the road with peace of mind as any damages to the third party, vehicle, or the owner (depending on the cover taken) will be covered under the policy.
However, in case you actually incur damages in case of an accident involving your insured vehicle and a third party, you will have to make a claim to the insurance company.
Here is a checklist of all the documents you need before making a claim for damages under your two-wheeler insurance policy.
Documents required to claim under two-wheeler insurance policy
You can make a cashless claim or a reimbursement claim for the damages depending on the mode of claim you have selected while taking the insurance policy.
Documents needed in case of cashless claim: In case of a cashless claim, the following documents would be needed for a claim.
- The original claim form duly filled and signed by the insured party
- Registration Certificate of the vehicle involved
- A copy of the insured party’s PAN card
- A copy of the insured party’s driving licence, duly self attested
- True copy of police report or FIR must be furnished in case there is an injury to the rider or to the third party, partial theft, damage, or any risks covered under the insurance policy.
Documents needed in case of reimbursement claim: In addition to all the above documents in cashless claim, the insured party must provide the below documents in case of reimbursement claims.
- A cancelled cheque or filled NEFT Mandate for online transfer.
- Original repair bill and money receipt along with discharge voucher must be submitted to the insurance company.
It is important to make a note of all the documents you need while claiming for damages under two-wheeler insurance policy in order to avoid a last-minute rush. It will also help you to get timely claim for your damages involving your insured two-wheeler.
Documents required when applying for two-wheeler insurance policy
You may have bought your dream bike or scooter with all the registration and paperwork down pat and may be ready to zoom off on your first ride, but stop and consider. You still can’t drive your vehicle on the road until and unless you buy an insurance cover for your two-wheeler.
According to the Indian Road Safety Act and Indian Motor Vehicles Act, it is mandatory to buy a policy that covers liabilities such as loss of life, injury, or damage to property of a third party. While a ‘liability only’ policy covers the above liabilities, it does not cover damages to the vehicle itself. Hence, you can go for the comprehensive insurance plan that will cover liability to third party as well as owner and vehicle.
There are many insurance companies offering a bouquet of plans with protective cover for your two-wheeler. Once you have gone through all the plans of different insurers, compared them, and zeroed in on the best policy for your needs, you can rest assured that you have taken adequate cover for all the damages you foresee due to usage of your vehicle on the roads.
To purchase the insurance plan of your choice, you need to keep handy the documents required for the same. We outline below the documentation required to purchase two-wheeler insurance.
Documents needed to buy two-wheeler insurance:
- Proof of identity: Passport / driving license / Aadhaar card / PAN card / government-issued photo ID. In today’s time, Aadhaar card is a must in every application. Hence, irrespective of whether you have a valid PAN or Voter ID card, you may still be asked to submit a photocopy of Aadhaar card.
- Proof of address: Passport / driving license / Aadhaar card / PAN card / government-issued photo ID cum address proof / bank or post office passbook
- Recent passport size photograph
- Personal details such as name, address, date of birth, gender, and occupation
- Photocopy of driving licence
- Two-wheeler’s registration number and registration certificate
- Credit / debit card / net banking details for online payments
However, if you have already taken a policy that has elapsed and want to renew it, you still need to submit the above documents again. But in such a case, you also need to submit a few additional documents as well.
Additional documents in case of renewal of expired policy:
- Old two-wheeler insurance policy number
- Insurance policy renewal form
It is important to keep the documents ready in case of taking a new two-wheeler insurance cover or renewing an old policy. Keep this list handy and use it before purchase or renewal to ensure a smooth transaction.
Top 10 two-wheeler insurance companies
It is mandatory to take an insurance policy for your two-wheeler to cover liabilities to third parties before you drive your vehicle on the roads in India. There are many insurance companies offering cover for two-wheelers, each offering a plethora of options, features, and add-ons.
Here are the top 10 two-wheeler insurances companies offering both ‘liability only’ cover and comprehensive insurance plans.
1. Bajaj Allianz: This insurance provider has received AAA rating from ICRA which recognises the company for its highest claim paying ability. It offers both ‘Liability Only’ and comprehensive plan. It offers both one-year and three-year coverage period. It also offers zero depreciation cover. Website:https://www.bajajallianz.com/
2. TATA AIG Insurance: They offer different types of two-wheeler insurance policies depending on the needs and requirements of the owner. The company provides auto-secure two-wheeler package or long-term policy depending on the requirements. It also offers add-on covers for two wheelers. Website: https://www.tataaiginsurance.in/
3. Reliance General Insurance: This company claims to give you up to 40% discount on two-wheeler (bike & scooter) insurance premium amount. They also have 159 network garages to use cashless facility. Their two-wheeler insurance starts at Rs 3 per day. Website: https://www.reliancegeneral.co.in
4. The Oriental Insurance Co. Ltd: This government insurance company deals in various projects such as power plants, petrochemical, steel and chemical plants. Under two-wheeler insurance, it offers both Liability Only and Comprehensive Plan. It also offers various add-on covers on extra premium. It also offers coverage at shorter duration of less than a year. Website: https://orientalinsurance.org.in/
5. The New India Assurance Co. Ltd: This company was founded by Sir Dorabji Tata in 1919 and provides a range of policies across all sectors. It offers insurance on all types of vehicles that ply on roads. It offers both the Liability Only and Comprehensive cover under two-wheeler insurance. It also offers add-on covers such as Nil Depreciation Cover for two-wheelers. Website: http://newindia.co.in/index.aspx
6. SBI General Insurance: This is a much sought after insurance provider as it provides coverage to 56 cities pan India. The company offers long-term two-wheeler policy for two or three years with discounted premium. It offers both Liability Only and Comprehensive cover with bonus packages. Website: http://www.sbigeneral.in/SBIG/
7. Bharti AXA: This insurance policy service provider offers a rather unique feature in its two-wheeler insurance policy. It offers a compulsory personal accident cover for owner-driver for both third-party and comprehensive plans. They have over 2500 cashless garages across India and 79 branches across India. Website: https://www.bharti-axagi.co.in/
8. ICICI Lombard: This insurance company has a wide reach, providing coverage to business, personal, and project liabilities across rural as well as urban areas. It claims to protect more than 60 Lakhs two-wheelers every year. It provides personal accident cover of Rs 1 Lakhs to the rider while travelling, mounting, or dismounting the vehicle. Website: https://www.icicilombard.com/
9. HDFC Ergo Insurance: It offers both the Liability Only and Comprehensive Plans, and offers various features on each of them. It claims 94% claim settlement ratio and one can buy insurance for up to three years in a single transaction. Website: https://www.hdfcergo.com/
10. National Insurance Company Limited: It gives coverage limit of Rs 7.5 Lakhs on damages to third party. It also offers free 24*7 road side assistance and various add-on covers such as zero depreciation, medical, and accessories cover. Website: https://www.gibl.in/national-insurance/national-two-wheeler-insurance/
There are other insurance providers that are equally good and offer their own set of features and add-ons. Study the market and choose the provider who suits your insurance needs the most.
What are the factors affecting premium of Two wheeler Insurance
Having your own vehicle would give you a lot of convenience and save some of your precious time, now you can dump that public transport and drive your two wheeler at ease. But protecting your vehicle from any calamities or manmade mishaps is your prime responsibility; else it might cost you dearer in the near future.
Get a comprehensive two wheeler insurance that can secure your motorcycle from unexpected events like theft, accident etc and lessens your burden of sudden expenses. There’s no fixed price and the premium for bike insurance can vary based on various factors.
1. Condition of your vehicle
This is a very basic factor that is being taken into account while calculating your two wheeler insurance premium. Following information are vital and would influence the premium value.
- Manufacturing year of the bike
- Fuel type
- Model and class of the motorbike
- Place of registration
- Engine capacity
- Make of the bike
- Accessories and other modifications carried out
- Showroom price of the two wheeler
- Number of miles rode
Undoubtedly, a sports bike will bear higher premium as compared to normal motorbike, because of its enhanced engine capacity and added accessories. Even purchase zones affects premium – Zone A which comprises mainly of metros and mini-metros charges higher premium than Zone B, which are non-metros and smaller towns.
2. Type of coverage
Your insurance premium will also depend on the type of coverage you seek. As per Motor Vehicle Act, third party cover is mandatory which will cover damages done to the third party – that’s bare minimum. But on the even of accident, loss of life, damages, theft, fire, vandalism etc. you would need a comprehensive cover to avoid any financial burden in later stage. And hence you have to pay extra premium for the same.
3. Driver’s Experience and Other Factors
Insuring companies look into the factors like overall riding experience of the driver, age and gender of the driver, as well as driving record to fix up a premium. This is basically input to the calculation based on the risk. So, a young male aged between 20-25 years, having a riding experience of six months might end up paying more premiums as compared to one having more than 2 years of riding experience and aged between 35-40 years.
4. Add-on Covers
If you have a high end motor bike, where you have spend a good amount of money in its accessories, then you might want to cover them as well – that’s when Add-on covers comes in rescue. So zero depreciation cover, medical cover, and personal accident cover, cashless hospitalization cover etc will have a substantial spike in your premium costs. Choose intelligently as per requirement.
5. Volunteer for a high deductible
One of the ways to reduce the premium cost is to opt for a high voluntary excess or deductible. It is basically the amount the insured has to pay in case of making a claim. The insurance will pay only any claims above the deductible amount and after the insured paying the deductible.
6. Change of ownership or vehicle
In case you decide to sell off your vehicle, you can transfer your existing insurance to the buyer. Also, when you decide to change your two-wheeler, your existing plan can continue on the new bike, provided the premium is adjusted on pro-rata basis and the new vehicle is of the same value.
Let the biker in you enjoy a seamless ride, while your two wheeler insurance protects your vehicle and you from any unexpected events in future.
Is it safe to buy a two wheeler insurance online?
The world is smart enough to buy electronics, garments, groceries, furniture and even dating online but many are still reluctant to buy insurance online. It is due to several reasons like its not enough habitual for buyers to assure the safety of their documents online. This hesitation can be sensed well when it comes to buy even two-wheeler insurance.
What make people think that buying TW insurance online isn’t safe?
1. Nobody’s there to guide you
Most common perception that makes buyers think that it is unsafe to buy insurance online is the lack of guidance they sense while buying. Unlike traditional route where an advisor sits with you and gives options to customize your policy, in the online route nobody is there to guide you. But you can be your own guide by comparing the plans offered by all companies at a single platform like online insurance marketplaces and choose the best one for you in few clicks.
2. Risks involved with providing documents
Risk is the very factor that demotivates insurance seekers to get deals online. Many are still reluctant to make payments online and provide copies of documents like RC book, identity proof etc. But there are many trusted sites and with proper due diligence you can ensure 100% safety in online transactions.
Steps to be taken to ensure safety
Buying TW insurance online is never unsafe; however, one should take safety measures while purchasing two-wheeler insurance online.
Transparency means more credibility: With online purchasing of two-wheeler insurance, transparency is the factor, which scores most determining the credibility of the site. Do not get lifted up with luring promises. Look out for transparency in their plans, details and policies.
Security of online transactions: Two wheeler owners buying insurance online will have some safety concerns. It is mandatory to check SSL certification of the insurance website, which make the transactions legit and encrypted. SSL certified websites will have ‘https’ instead of ‘http’ web address or URL. Never use any public or unidentified wi-fi networks for money transactions to avoid security risks. Payments for insurance premiums can be made using debit cards, credit cards, or net banking safely managed through secured gateways.
Avoid public Wi-Fi networks to make financial transactions: When transacting online, the internet connection you are using is a reason for data theft and thus a security risk. As a best practice, always make sure you use a secure personal Wi-Fi network while making any online financial transactions.
Online insurance means more options to choose from, easy comparison between various plans, and saving time. With no broker or agent, buying insurance online helps you to save on premium. If you choose a credible website, with all online financial transactions over an encrypted network, buyers need not worry about security.
Top 10 Offline Two Wheeler Insurance Plans
You must buy an insurance plan for your two-wheeler to cover any damages due to accident, theft or loss of vehicle. According to the Indian Road Safety Act and Indian Motor Vehicles Act, it is mandatory to buy a ‘Liability Only’ plan for your two-wheeler to cover any damages to life, injury or property of a third party. There is also a ‘Comprehensive’ plan that gives additional security to owner and the vehicle.
Buying an insurance plan for your two-wheeler is easier said than done. There are so many insurance providers claiming to give you the best cover for your two-wheeler. There are offline and online insurance plan for your two-wheelers. Buying online is the most preferred option these days as it saves time and energy.
But offline methods too are preferred as you would like to visit the insurance branch, talk to a representative, take your time before choosing to buy the best insurance plan for your two-wheeler.
Here are the top 10 offline insurance plans for your two-wheeler.
Bajaj Allianz Two Wheeler Insurance: Bajaj Alliance offers long term two wheeler insurance policy, with coverage up to 3 years. Long term policies help you to save money if in case of premium hikes or service tax hikes during that period. The company offers 24X7 claim assistance and offline as well as online renewal of policies.
Reliance General Insurance: Reliance is one of the sought-after insurance providers for two-wheelers. It has over 2,100 network garages across India that provides free repair or replacement services. Besides, it also offers Rs 1,500 allowance on towing charges. Among its various benefits, it also provides no claim bonus, discounts on premium if anti-theft devices installed, and easy settlement of claims.
Tata AIG Motor Insurance: If you are looking for extra services than the normal insurance cover for your two-wheeler, then Tata AIG Motor Insurance is the best plan for you. They not only provide Liability only and Comprehensive plans, but also claim to compensate you for loss of your personal belongings that are kept inside the vehicle during the time of accident. Besides, it provides six-month warranty for accident repairs, and add-on covers are also available.
ICICI Lombard Two Wheeler: ICICI is another big name in the world of two-wheeler insurance. It provides free servicing over 3000 cashless network garages across India. It offers the option of paying one-time premium. And if you are a member of Automobile Association, you are eligible for discounts as well. It says in its website that it has issued over 11 million polices and settled over six million claims.
SBI Motor Two Wheeler Insurance: SBI needs no introduction and SBI General Insurance offers customised two-wheeler plan. The two wheeler insurance offered by SBI General comes with customised pricing based on customer profile, and with special discount for vehicle owners between 25 years and 55 years of age. In addition to providing Liability Only cover, it also offers a personal accident cover of Rs 1 Lakhs to the owner if the two-insured two-wheeler meets with an accident. It has a broad reach of over 56 cities and has a brand value second to none.
New India Assurance Motor Policy: New India has a strong global presence in more than 27 countries and is wholly owned by the government of India. It has made a niche for itself in the insurance market. Two-wheeler insurance of new India comes under their broad offerings of Motor Insurance, assuring a quick claim processing system. It provides both ‘Liability Only’ and Comprehensive insurance plan with a host of add-on covers.
HDFC ERGO Two Wheeler Insurance: HDFC Ergo is an ISO certified insurance provider. The company offers customised long term two-wheeler insurance policy up to 3 years with NCB lock-in, thereby saves you from the hassles for renewing every year. They also offer additional discounts in the subsequent years and offers convenient both offline and online.
Royal Sundaram Two Wheeler Long Term Insurance: Royal Sundaram is a subsidiary of Sundaram Finance. The company offers long term two-wheeler insurance cover for two to three years on one-time payment and promises claim settlement within 10 working days. It offers unlimited liability for third party’s death or bodily injury claims. It also offers personal accident cover for pillion riders.
IFFCO Tokio Two Wheeler Insurance: IFFCO Tokyo Two Wheeler Insurance provides cashless claim facility across their garage networks across India for damages to your vehicle arising from accidents and natural calamities. It says in its website that its discounts on No Claim Bonus can go as high as 50 %. It also offers a cancellation policy and promises to repay the premium subtracting the pro-rate portion for the period the policy was in force.
Bharti Axa Two Wheeler Policies: Bharati Axa is a well-known insurance provider promising services across 2500+ cashless garages and claims 42 million policies issued. It has over 79 branches across India. The company offers discounts on premiums with No-Claim Bonus, personal accident cover for all occupants and discounts on premium if anti-theft devices are installed in your vehicle. It also offers various add-on covers such as personal accident cover for pillion rider and zero depreciation cover.
Before buying an insurance plan, do make it a point to cover the benefits of different policies before choosing the best one meeting your requirements.
What is the difference between cashless claim and reimbursement for two wheeler insurance?
Going “cashless” is a convenience everyone loves to have. Whether it is digital payments or enjoying cashless facilities, customers are pampered with options today. Cashless facility is the prime attraction of any general insurance policy, whether it is a two-wheeler policy or a health insurance.
Buy customers are not able to enjoy cashless facilities everywhere. Some times, they have to wait for reimbursement of the expenses incurred while making a claim.
Here’s everything you may want to know about cashless claim and reimbursement in your two wheeler insurance policy.
Cashless Two-wheeler Insurance Claims
In case of an accident or damage of the vehicle, if you are approaching a garage in the network of your insurer, you can enjoy cashless facility. The insurance company and the garage will settle the deal amongst themselves, and you need not pay anything from your pocket. You need to pay some amount only if there is any excess amount of claim, or if any repairs are excluded from your policy. In such cases, only that amount needs to be paid by the vehicle owner.
Reimbursement for Two-Wheeler Claims
If you go for reimbursement claim settlement for your two-wheeler, then you can service your bike at any garage, pay them out of your pocket and later submit the original copy of the bill to the insurance company for reimbursement. The insurance company will settle the amount to your account after cross checking the bill, and the repairs undertaken. You can choose any garage of your choice, even the ones outside insurance company’s choice list.
The tough choice comes when you need to decide whether to use the insurance as a cashless claim or for reimbursement.
Key differences between the cashless and reimbursement
- In cashless claims, the insurer has to service the vehicle in one of the network service centers of the insurer. If you go for reimbursement, you can service the vehicle in the nearest garage of the accident spot or at any garage of your choice.
- Cashless claims may sometimes delay the release of the vehicle if the insurer delays the claim process. In case of reimbursement, you can settle the amount out of your pocket and release the vehicle and claim the amount from the insurance company later.
- Most service centers that have tie-ups with insurance companies are professional and reliable. So you can expect more prompt and good service. On the other hand, your local mechanic might not be that best if you service your vehicle from the local garage and claims the reimbursement.
You need to choose wisely between these two options for a better return on your money. Before finalizing the insurance company, it is recommended to check the network service centers and Claim Settlement Ratio (CSR) to make sure that you can avail the best and cashless at your convenience.
Most effective ways to avoid your claim rejection by Insurers
Claiming insurance amount is an uphill battle for two-wheeler owners, as there are many terms and conditions to be adhered to. It is very much important to adhere to every condition before claiming the insurance, as an incomplete or inaccurate claim would only result in claim denial. There are plenty of clauses, exceptions, and conditions included in the current generation two wheeler insurance policies as false claims have increased over a period of time.
The important aspects to remember to avoid claim rejection by two-wheeler insurers include:
Fill up application form correctly: Many people leave the task of form filling to the advisor. This may lead to many errors in the form and in the insurance policy also. Whether you are filling the form yourself or leaving it to the advisor, make sure to double check everything. Even a small change in the vehicle number or chasis or engine number can result in claim rejection if this was ignored before.
Pay your premiums on time: Paying your premiums on time gives you a better profile advantage, where an insurer treats you as a premium customer and overlooks minor errors in the claim. Ensure you pay premiums on time and before expiration of the policy. You are not eligible for any claim if it the accident happens when the policy is not live, even if it is just an hour’s gap between lapse of the current policy and renewal.
Report accident correctly: Correct description of the accident is required while reporting a claim. If it is a road accident involving damage to third parties, an FIR is mandatory. FIR is mandatory for all vehicles registered as commercial vehicle, even if third party claim not involved.
Update nominee information: Many people overlook the need of updating nominee details in a two wheeler policy. In case of an accidental death of the vehicle owner the insurance company will settle the claim to the nominee if the nominee details are updated in the policy.
Do not delay in filing claims: Delay in filing claims is like buying a train ticket after the train’s departure. Insurance examiners are smart enough to look at every single aspect of the claim and take enough time to examine every part of the claim. Delaying in filing claim is the last thing you want to do, as it could make an already comprehensive process even longer, or sometimes counter-productive.
Take expert advice while claiming insurance: Claiming two-wheeler insurance claims may be an easy task for most experts, but a layperson would not have enough idea to file a claim in the perfect way. It is important to take an expert’s advice while claiming two-wheeler insurance, as they will have enough domain knowledge to fill details in an effective way and can help lessen the chances of claim rejection as well as speed up the claim filing process for you.
Claiming two-wheeler insurance is always a tough task, especially for new vehicle owners as they would not be fully aware about the nuances and the process. Ensure you follow the claim process properly and do not take any shortcuts in order to get the application processed quickly.
Common Myths Surrounding Two Wheeler Insurance
Lakhs of two wheelers are sold annually in India, and the world largest two wheeler companies are from India. Even though two-wheelers are a ubiquitous presence on our roads there are a lot of misconceptions and myths which surround two wheeler insurance. Also, due to a lot of jargon being associated with insurance policies, sometimes even simple fact turns into confusion for the consumer. Furthermore, the lack of awareness about insurance turns them into a myth.
Let’s look at some of these myths and try to unravel them.
The Color Matters: With dozens of companies in the market vying for consumer’s attention with new colors and models, it is a common myth that a bike which is bright red or a sparkling blue will cost more than a dull greycolor.But the fact is that color of the two wheelers has nothing to do with the premium charged. The premium depends on a lot of factors like make, model, engine and the age of the vehicle.
Your credit and driving history: The consumer thinks that his credit history affect the premium. Some companies do credit check and driving history check before issuing insurance, but for a two wheeler insurance, in most cases this is not being done. A bad credit history would result in the premium going up,so one should not assume that a two-wheeler insurance is just based on the vehicle, with the credit and driving history being available very easily the company does check it.
Just taking mandatory coverage is enough: Generally, the consumer thinks that if a cover that is mandated by law is taken, it’s enough to cover all the liabilities, but, that is not the case. In the event of an accident the liabilities can pile up and one may have to pay out their own pocket to cover the same. So it is advisable to take a comprehensive cover with additional add –on’s to ensure that all the liabilities are covered.
Both claim and policy procurement is cumbersome Many consumers consider insurance as a hassle that is time-consuming and that the companies try their best not to pay the claim.
This may be true when years when there was lack of choice. But now, with a regulator (IRDA) looking at everything with a watchful eye and consumer satisfaction being the new mantra of the companies it’s very easy to get both insurances as well as claims. All the services are now available at your doorstep and all the process is now online and can be easily understood and tracked.
Loss of no claim bonus: Many consumers think that they can avail NCB (No Claim Bonus) only if they stick to the same insurer by being their loyal customer. The fact is that the NCB is transferable and if one has a good driving record with no claims during the policy year, they could get the same at any company. So there is no reason to continue with a company that one feels is not consumer friendly.
Myths are part and parcel of every products and services and the insurance sector is not left. It is up to you, to make a wise decision
What if I don’t claim during entire tenure of my two wheeler policy?
You take pride in being a skilled driver or rider. You never break rules. You drive carefully and safely. You maintain a clean record in your driving. You have done all the paperwork concerning your vehicle and covered all the loopholes. You have also taken an insurance policy to cover any damages that may occur to your vehicle, yourself or any third party in case of an accident. You have been spotless in riding your vehicle and never had the need to make any claim.
Hence, to reward drivers or riders who never have to make any claim during the entire tenure of the policy, insurance providers introduced a feature called No-Claim Bonus or NCB.
This feature gives you discount on the insurance premium on the vehicle if you don’t make any claim in the preceding year. The percentage of discount varies depending on the consecutive number of years for which you have not made any claim. Hence, No Claim Bonus is a reward for keeping a claim-free record on your insurance cover.
Here are the discount rates:
|Age of two-wheelers
|Post one claim-free year:
|Post two straight claim-free years:
|Post three straight claim-free years:
|Post four straight claim-free years:
|Post four straight claim-free years:
So, if you keep your records clean and do not make any claim in any of the five straight years, then post the fifth year, you are entitled to a 50% discount on your insurance premium. That is half of your actual premium amount.
Exception: However, it is important to note that the discount is offered on the ‘Own Damage’ component of the premium and not on the third party liability premium.
If you have no choice but to make the claim: In such a situation, first determine the cost of the repairs. If you think the cost of the repairs is petty, then it’s better to self-finance it as any claim will make your NCB void that you may have build it up so earnestly over the years. Another option is to make use of the add-on cover as it retains a pre-defined percentage of your NCB.
What if you switch to a new car or another insurer: The good thing about NCB is that you retain the discount no matter if you have to switch to a new car or a new insurer. The discount can be easily carried forward from the old insurance to the new one.
Hence, it is always advisable to go for claim-free years so that you can reap the rewards of NCB. And for that you need to drive safely and do not make any claim.
What are the post sales services after buying two-wheeler insurance?
Post sales services are today one of the most essential aspects for all service sector enterprises. Insurance being a service offered by various government owned or private insurers the focus is as much on post sales service as it is on pre sales.
In today’s highly competitive world, insurance companies are improving their service quotient with each passing day to ensure they are able to retain majority of their clients as they work on adding new insurance clients into their fold.
If you think your obligations end with buying two-wheeler insurance, think again. You may need the services of the insurance company much more post sales for various aspects of your insurance even if you do not seek a claim during your policy tenure. Here are the essential post sale services you are likely to need after you buy two-wheeler insurance.
Replacing cover note with original insurance certificate: When you pay for your bike insurance you are offered an insurance cover. The validity of the cover is usually for 60 days. Usually the insurer sends you the full insurance certificate before that period. An important post sale service is to ensure you are able to receive your insurance registration certificate in time without having to send constant reminders to the insurer before the insurance cover expires.
Efficient handling of queries: All your queries are handled as part of the post sales process. The services may include seeking information on claims, filling of claims to checking on list of cashless networked garages. Ensure your insurer offers a 24/7 helpline along with email and phone channels for easier handling of all customer queries.
Quick claim settlement process: Claim settlement process is the most important part of post sale service. An inefficient post sale service means it defeats the sole purpose of seeking insurance cover for your bike. Check CSR of your insurer as it can reflect how good or bad their post sale services are. Every year the insurance regulator IRDAI issued a list of CSR or claim settlement ratio for all general insurance companies offering motor insurance. Claim settlement ratio is the ratio of number of claims approved by your insurer compared to the total number of claims it received in the year. By knowing the CSR numbers you can understand which insurer has more proactive after sales service when it comes to offering help for early claim settlement.
Premium reminders: You can lose all your protection even if your insurance cover expires for a day. A proactive post sale service will ensure you are sent constant reminders to ensure you renew your insurance policy well in time.
Checking on the post sales services are just as important as choosing the right insurance policy with apt protection for a seamless insurance experience for your two-wheeler.
Does a cheaper premium guarantee a better two wheeler insurance plan?
Buying an insurance policy for a two-wheeler that is being used on the road is a mandatory requirement by the law. So one has to have insurance that covers the perceived risks of such usage. However, with scores of insurance companies offering a variety of options, it is often confusing to select the most ‘value for money’ plan.
The question that often arises is should the premium amount be the sole criterion for choosing an insurance plan or should one look at other factors too?
The fact is, apart from the premium amount there are many other considerations that need to be factored in choosing an insurer or insurance plan. We outline a few important ones in this article.
One should look at the Claim Settlement Ratio (CSR), company reach and network and its presence in your region. If you just go for the cheapest plan available online and when you file a claim and the company does not have a representative in that area it could create a lot of difficulty for you.
The customer service of the company should also be taken into consideration. The ease with which consumers get their claim settled is an important factor.
Cash less network
In case of a damage if one can just take the vehicle to the garage and does not have to worry about how to pay for the damage especially if the vehicle is badly damaged. The option of the company directly settling the bill without the consumer having to do it and then waiting for the company to reimburse it could be a big relief.
So look at the kind of cash less network the company has. One can look up at the website of the company or can ask the company representative to provide the list of establishments where cash less facility is being offered.
Add On Benefits
There are various add-ons that are available which are really helpful like road side assistance, zero depreciation, engine protection etc. As these are optional, many people try to avoid them to save premium. But a careful analysis is required before opting out add-on covers. For example, if you are living in a flood prone area, where it is high likely to get engine damages due to flood, it is advisable to go for and engine cover add-on by paying additional premium.
Once all these factors have been taken into consideration and a quote has been generated then one should always compare the same with at least a couple of companies.
The easy way to do it is online; as one can compare what other companies are charging for the same benefits on various websites. If you have taken an offline quote still one can look at online quotes by keying the parameters in the quote or can ask for an offline quote from other companies.
You can choose to reduce your premium payable by opting for online payments or agreeing to pay a part of the claim in case of damage. If one has not made a claim in previous years the insurer gives a rebate on premium to the consumer. Now a days instead of opting to renew the policy annually one can opt for a 2 year policy and get a discount. Only few companies offer this. So there are several options by which one can reduce the premium amount.
The best way is not to go for the cheapest premium option but to go for the one that is providing the best ‘value for money’ with all the benefits.
What are the exclusions in the TW insurance policy?
Thousands of two wheelers are sold every day in India. They are a part of daily lives of millions of Indians and everybody wants to take the best possible care of their vehicle. While people may wash and clean their vehicle on a daily basis to keep it in good condition when it comes to insurance, nobody has the patience to go through the policy document and look at the fine print.
In fact, a majority of insurance policies are sold where the insured just signs where he is asked to, without reading the inclusions and exclusions of the policy. And they feel that they have got the best coverage for all circumstances just because he/she has paid the premium. But this is not the case.
Just like any other contract, an insurance policy also comes with its conditions which if violated can result in claim rejection. These conditions are known as exclusions in insurance parlance and it is very important that one understands them fully.
Let’s have a look at the exclusions that are applicable to a two wheeler insurance policy.
- Drink and drive: This exclusion is common sense but looking at the number of drink and drive cases that happen on the road every day, it very clear that few people take the advice. The first thing that is checked by the insurance authorities in case of an accident is the alcohol content of those involved in it. And it is a good reason for them to reject your claim.
- License is a must: If you are a parent who cannot say no to your underage child when he asks for the keys to your vehicle -think again. If The insurance company may reject your claim if they come to know that it happened when your vehicle is found to be driven by someone without a valid driving license .
- Any damage to the vehicle due to war, terror attacks, invasion, foreign enemy action, civil war, mutiny, rebellion, hostilities, radiation or nuclear material/weapons are excluded from the policy.
- If the manufacturer's guidelines are not adhered to and any damage to the vehicle is arising out of it, then this is a good reason for the insurer to reject your claim.
- If it comes to the company’s notice about any deliberate loss where the accident was done on will, your claim will be rejected.
- Damages to tires and tubes unless damaged during an accident are excluded
- General aging, wear and tear, mechanical or electrical breakdown and failure are also excluded from policy coverage
- If your bike is ridden outside the geographical areas of India, you cannot lodge a claim for any damages
- Consequential losses: If any damages happen to the vehicle due to any willful action of the policyholder and is not due to an uncertain event, then the claim may be refused. For example, if your vehicle gets stuck in a water logged area and you leave the vehicle in that situation and the engine seizes. This is considered as consequential damage and the claim may be refused.
So one must always read the fine print and be aware of the exclusions before taking a policy. It is always better to ask questions before than to be sorry later.
Dos and Don’ts while buying TW Insurance online
The world is running on technology, and the internet has become almost a necessity in our life. Consumers buy even groceries from online retailers, so buying or renewing an insurance policy online for the two-wheeler would not come across as surprising.
However, there are certain things to take care of before you purchase a policy for your two-wheeler online. Unlike perishables and other items of daily use, insurance cannot be simply discarded or disposed of if you have made the wrong choice. Insurance for two-wheelers is a necessity on Indian Roads as there is an element of risk and is also mandated by law.
In this article, we give you a few do’s and don’ts of buying two-wheeler insurance online.
Online insurance purchase is of course quite easier than physically purchasing it. However, you also need to do the following.
- Identify the type of insurance policy you want to have for your two-wheeler based on all the inclusions of the policy ie, what all liabilities it covers. It can be either a third party policy, which will cover only the liabilities related to third parties, or it can be a comprehensive plan covering all financial losses along with personal accident loss.
- There are lots of add-ons or extra benefits that you can buy by paying a little more than the basic premium. Online websites of the insurance companies provide all the details about the different add-ons like the cover for the pillion rider, for spare parts and accessories, etc. Check them thoroughly and include them in your policy if required.
- Insured declared value or IDV has to be calculated before renewing your insurance. As the value of the two-wheeler decreases, the IDV has to be re-calculated to find out the new premium amount.
- It is important to check the coverage of the insurance policy you are buying online. Most policies provide the essential coverage, that is, for accidents. However, if you want coverage against theft and damage of your vehicle from natural disasters, you need to pay an extra premium for that.
- If your driver was driving the car beyond permissible speeds while being intoxicated and faced an accident, the insurance company won’t be liable for honoring your claim. There may be more exclusions like this to the insurance coverage. Study the detailed policy of the insurer to check what is included and excluded from the policy.
While buying insurance for two-wheeler from online sites:
- Do not make your purchase decision solely based on premium cost. A small premium for the two-wheeler insurance would provide only the basic cover. If you buy a cheap insurance policy for your two-wheeler, you are not accounting for the risk to your life as well as the value of the vehicle.
- Do not wait for a long time for claiming after your vehicle has been damaged due to an accident or any other cause that is covered under the policy. The insurance company will scrutinize everything and then only it would pay the claim amount, so filing the claim online as quickly as possible is important.
- Do not forget policy renewals, as an uninsured vehicle will mean that risk to your life and your vehicle are not covered.
- Do not skip reading the terms and the conditions of the insurance coverage while buying it. This is the most important factor to keep in mind while buying insurance, whether online or offline. Read the legalities and every other detail in the policy to find out if there are any grey areas that can create issues during the settlement of the policy.
Buying two-wheeler insurance policy online is bound to be a smooth affair provided you follow the do’s and don’ts as mentioned above.
How much penalty do I need to pay in case my two-wheeler is not insured or my insurance has expired?
Many times the quest for driving a new bike on the road is too much to ignore some mandatory requirements. Just as driving a bike without a helmet is unlawful and highly risky; driving your bike without insurance can have serious consequences.
Getting a third party insurance for your bike or two-wheeler is mandatory as per the regulations of the Motor Vehicles Act of 1988. Driving without valid insurance can put you at risk of fines and penalties. Care must be exercised to ensure your insurance policy is active as any expired policy even if it is for a day may mean high financial risks and penalties from the traffic police.
Two-wheeler insurance simplified: Many new two-wheeler or bike owners often complain that they were not aware of the regulations for insurance. Here is a look at all important insurance related aspects you must know before your purchase a two-wheeler.
- Two-wheeler insurance is classified into two types, namely third party insurance and comprehensive insurance.
- Third party insurance is compulsory for all vehicles on Indian roads as per Motor Vehicles Act of 1988.
- Third party insurance offers cover for liabilities for any damages to a third party or property.
- Any damages to the self or bike or the driver are not covered.
- Theft of the bike is also not covered in third party insurance as it offers limited liability.
- A comprehensive insurance offers larger protection along with third party benefits.
- Premium for a comprehensive cover is higher than a third party cover.
- You can opt for various add-ons to make your comprehensive cover even more protective.
- Poplar insurance covers for bike insurance include zero depreciation cover and protection for pillion rider cover.
Legal obligations of not having bike insurance: Since having two-wheeler insurance is mandatory as per law, if you are found driving a bike or a two-wheeler without active insurance, you are liable for fines and penalties.
- Having no insurance can mean a fine of Rs. 1000 for a first time offence and Rs. 2000 for a repeated offence.
- The new Motor Vehicle Bill 2017 (amendment) has proposed to increase the quantum of fine from Rs. 1000 to Rs. 2000 for a first time offence.
- A bike owner with an expired policy is considered to be without insurance even if the policy has expired one day earlier. Always ensure to renew your bike insurance well in time to avoid such a scenario.
- Always carry the physical copy of your bike insurance with your driving license and bike registration certificate and pollution under control certification.
Can I pay premium for more than 1 year at one go? (For two wheeler insurance)
Are you worried about missing the deadline for your bike insurance policy renewal?
To make insurance more convenient and a long term affair, the insurance regulator Insurance Regulatory and Development Authority of India (IRDAI) gave a go ahead for long term insurance plans for two-wheelers. So you can now opt for a long term insurance plan with policy tenure of up to three years instead of a traditional annual insurance policy for your bike or two-wheeler.
The growing popularity of long term insurance plans for two-wheelers has meant that today almost every insurer is offering such a plan for their policyholders. Apart from making insurance more convenient by ruling out need for an annual renewal of the policy, long term plans come with multiple advantages for the policyholder.
Low non renewal risks: Unlike an annual policy, a long term policy has lower non renewal risks. For example, if a policyholder forgets to renew the policy on time, any loss or theft during the time the policy was not active can lead to a huge financial loss. The chances of such a loss are quite slim with a long term insurance in place.
Fixed premium for policy tenure: The premium for a long term insurance policy is fixed for the entire tenure. It means no annual increment for policy premium on account of increase in third party insurance premium rates.
Discounts galore: Many insurers offers discounts like discounts on own damage premium making long term insurance plans more pocket friendly.
NCB advantage over traditional policies: The no claim bonus slabs when renewing a long term insurance plan act differently compared to traditional annual policies. A claim free 3 year long term policy can as a result attract higher NCB than a claim free one year policy after 3 consecutive years.
Long term insurance for two-wheelers: Everything you need to know
- Yes you can opt for a long term two-wheeler insurance plan with tenure of up to 3 years.
- Long term insurance plans are more convenient and cost effective compared to traditional annual insurance policies.
- Most insurers are today offering such long term policies ensuring policyholder has ample choice.
- The premium amount for the insurance is fixed for the entire tenure saving you from any premium hikes on account of annual third party premium increments.
- NCB component is higher for long term insurance policies compared to annual policies.
Is pollution under control check mandatory for Car Insurance? What are the penalties if one doesn’t have PUC?
Mandatory or not, having a pollution under control or PUC certificate is our moral obligation towards the environment. For the record, the PUC certification is mandated by the Central Motor Vehicle Rule of 1989. No vehicle is therefore allowed to be driven on the roads without having a valid pollution under control certification.
The growing concern for degrading environmental surroundings, the Supreme Court of India has proposed to the Environment Pollution Control Authority to link vehicle insurance with PUC certification.
Everything you must know about PUC certification
A PUC or pollution under control is not just any other certification but is a certification assuring that your vehicle fulfills the emission norms and does not pollute the environment. Here are some of the essential aspects of pollution under control certification that you must be aware of.
- Central Motor Vehicle Rule of 1989 makes is compulsory for all cars and vehicles to have a PUC certification in place before driving on the roads.
- A PUC certification comes with a new vehicle and is valid from 6 months to one year depending on the vehicle type and model.
- Before the expiry of the PUC certification, PUC must be renewed by the vehicle owner after getting the vehicle tested at any of the designated PUC certification units.
- The validity of all subsequent PUC certifications is fixed at 6 months.
- 4 wheeled vehicles that are manufactured as per the Pre Bharat Stage II, Stage III or subsequent Norms should meet the criteria of 0.5% of CO emission and 750 ppm or lower for hydrocarbons emitted.
- An effective PUC testing means that your car is tested five times for emissions and an average is computed which then constitutes as the final reading.
Penalties for driving without a PUC
- A PUC certificate must always be carried with you in your vehicle.
- Not carrying valid PUC can lead to prosecution under Section 190(2) as per the Motor Vehicles Act.
- The penalty for not having a valid PUC starts with a fine of Rs. 1000 for first time offence and Rs. 2000 for all repeated offences.
- Even with a valid PUC certification, a traffic police officer can seek a repeat test if your vehicle is seen over polluting the environment.
- Insurers may seek the copy of your vehicle’s PUC certificate when opting for car insurance.
Two-Wheeler Insurance Statistics in Indian Economy
When it comes to vehicle insurance, two-wheeler insurance is lagging behind car insurance in India. In fact a recent survey conducted by General Insurance Council representing majority of general insurance companies in India revealed that nearly 60% of vehicles running on Indian roads were without insurance.
The GIC findings came as a surprise as it listed that out of 19 crore registered vehicles in the country in 2015-16 only 8.26 crore were insured. GIC findings also correlated that majority of these under insured or non insured vehicles were two-wheelers.
The grass is however greener on the other side as with growing awareness Indians are today opting for two-wheeler insurance across all segments. From the high end bikes to the budget scooters and bikes, the two-wheeler insurance sector is buzzing with activity. The rise in the third party premiums however act as a deterrent as they also mean a rise in annual premium for all bike owners irrespective of their financial position.
Long term insurance, the game changer: The introduction of long term insurance plans approved by IRDAI has offered a positive impetus to the bike insurance segment in the country. From a traditional annual insurance policy that had to be renewed each year with a higher premium, two-wheeler owners can now opt for a long term insurance up to 3 years. Now only is the IDV locked for 3 years, the premium is also fixed for the tenure making the policyholder feel protected from annual third party premium increase.
Popularity of cashless insurance in the two-wheeler segment: Insurers are increasing their tie ups with networked garages offering motorcycle and two-wheeler owners the options for cashless insurance. Since such an arrangement ensures that all financial dealings are taken care of by the insurer directly by dealing with the networked garage, it adds to user convenience making more two-wheeler owners seeking comprehensive insurance plans.
Rising accident fatalities and bike insurance: Government of India figures revealed that two wheeler accidental deaths accounted for nearly 29% of all deaths that happened in India in 2015. With a comprehensive bike insurance policy offering an accidental death protection cover along with add-on cover for the pillion rider, majority of bike owners are embracing a comprehensive bike insurance policy for genuine protection against any such eventuality.
Two wheeler insurance is gaining ground thanks to growing financial awareness and introduction of long term policies.
Important Terminologies of Two Wheeler Insurance
Jargons and legalese can make your road to purchase insurance a bumpy one. Even reading the policy documents of your two-wheeler insurance may prove to be a daunting task. So here's your ticket to a smooth ride -- a glossary of important terminologies in two wheeler insurance:
Glossary of important terms
Third party coverage: When you buy a Third party insurance, you are insured against financial liability towards a third party in case of an accident. The damages refer to death, bodily harm or physical damages to the property of the third party. A third party cover insures you against financial liability towards the victim. It doesn't give you immunity from the legal liability arising from the accident.
Comprehensive coverage: As the name suggests, a comprehensive coverage provides complete cover to the insured. It proposes to insure the vehicle as well as the third party. Comprehensive coverage insures your vehicle against both natural and manmade calamities, like floods, earthquakes, landslides, fire, explosion, theft or vandalism -- to name a few.
Insured Declared Value (IDV): This is the maximum amount an insured can claim for total loss of vehicle. IDV is an estimate of the current market value of your vehicle at the time of buying insurance. You can quote a lower IDV by all means and sure will find your premium lowered. But in case of total loss (explained below) you would be able to claim much less. Also, you should do well to bear minor damages out of your pocket as minor claims reduce IDV and eventually your final claim.
Total Loss: You make a claim for a stolen vehicle. This amounts to Total Loss. In case your vehicle has been damaged beyond redemption or so much that the cost of repairs would exceed the IDV of the vehicle, you will also get compensated for Total Loss. Of course, your bike or whatever remains of it, would come in the possession of the insurer!
Add-on Covers: These are like extra slices of cheese you order for your MacMaharaja burgers. And they do make the paycheck fatter. Suppose you'd like a Zero Depreciation Cover or an enhanced Personal Accident Cover along with the insurance cover for your vehicle, you can add them to your policy for steeper premiums.
Personal Accident Cover: An add-on mentioned earlier which insures you against death and disabilities for some extra bucks.
Zero Depreciation Cover: Also mentioned earlier, this is another add-on, which will increase your premium further but with the benefit of a greater claim. The insurer compensates the insured by deducting depreciation from IDV. With passing years, your vehicle will depreciate owing to normal wear and tear etc. But you can opt for this add-on to claim the full IDV.
Deductible: In case of damages the insurer pay for it in accordance with the IDV which may be less than the Claim. The insured has to pay the balance from his pocket. This amount is called 'Deductible'.
No Claim Bonus (NCB): Think how advantageous it is for the insurer when you complete a year without a claim. The insurance company rewards this in terms of revised lower premiums during policy renewal in subsequent years. And these reduction in premiums are considerable giving you all the more reasons to drive well and responsibly. NCB can range from 20% for the second year to as much as 60% for the sixth year making it lucrative enough to keep trying for claim free years.
Indemnify: When the insurer indemnifies the insured it means the former compensates the latter for their loss. simply put, you get paid for your loss by your insurance company.
This is not an exhaustive list by any means but is capable of equipping you with enough know-how (and perhaps cunning) to let you choose your two wheeler Insurance wisely and avoid red herrings on the way.
Q: What is a third party bike insurance?
A: Third party insurance is a liability only insurance, which is mandatory for all vehicles before they can run on the road as per the Indian Motor Vehicle Act. Third party insurance offers protection towards any legal liabilities for damages to a third party or a third party's property on account of any accident or mishap.
Q: What is comprehensive bike insurance?
A: A comprehensive cover is an additional cover available for all vehicle owners apart from the mandatory third party insurance cover. A comprehensive insurance plan offers more protection to your bike including protection against theft and any damages to the bike because of any accidents, fire, flooding or other such losses due to various natural calamities.
Q: Which insurance plan should I opt for third party or comprehensive?
A: Since a comprehensive cover is a more all around protection offering cover for losses due to multiple factors including a theft cover, it is recommended over a third party insurance. Being a more secure insurance cover, the premium charges for a comprehensive insurance plan are higher than the mandatory third party cover. But with the rising costs of repair and increasing cases of bike theft, the extra premium can be worth it when faced with any such eventuality. You can also choose to make the comprehensive insurance plan more protective by offering for various add-ons like zero deprecation and protection for the pillion rider etc.
Q: Is theft covered in my two wheeler insurance plan?
A: A bike theft is a real possibility and an ideal insurance plan should offer protection towards any such happenings. The theft protection however is available only in a comprehensive insurance plan and not with third party covers which offer a very limited liability oriented at third party damages.
Q: How much money will I be paid if my bike is stolen?
A: The amount of money that will be paid to you on account of a bike theft will depend on the insured declared value of your two-wheeler. The insured declared value or IDV is the maximum amount you are liable to get and is based on the age, manufacturer, model, your location and other parameters as fixed by IRDA.
Q: Does two-wheeler insurance come with a personal accident cover?
A: Yes. A comprehensive two-wheeler insurance plan offers accident cover for the driver of the bike. Depending on the insurance plan, the personal accident cover may vary from one insurer to another. On an average insurance companies offer a personal accident cover of Rs. 1 Lakhs for the rider. The personal accident cover is null and void if the rider is found to be driving under the influence of any drugs or alcohol.
Q: Does bike insurance offers personal accident cover for pillion passenger?
A: A comprehensive insurance plan usually does not offer a personal accident cover for the pillion rider. The protection for an accident cover is reserved for the rider alone but some policies may offer such a protection either in the policy or through an insurance add-on rider. Check with your insurance company about the possibility of such a protection for the pillion passenger.
Q: What is the tenure of bike insurance policy?
A: A: The tenure of a bike insurance policy is usually for one year. However in recent times many insurance companies have started offering long term bike insurance plans ranging from 2 to 3 years. Depending on the insurance company, you can opt for such long term insurance plans for your two-wheeler.
Q: What documents are required to buy 2 wheeler insurance policies online?
A: To buy bike insurance online you just need a copy of the registration certificate of your bike along with copy of the previous insurance of the bike. For a new bike, just a copy of the registration certificate will suffice along with KYC details of the bike owner.
Q: is inspection of vehicle compulsory to buy 2 wheeler insurance?
A: For online insurance there is no need to get your vehicle inspected by the insurance agent. However if you are renewing your policy after the due date, you will need to get your vehicle inspected by the insurance agent to trace for engine chassis number and other details for a genuine physical inspection.
Q: What is long term 2 wheeler insurance?
A: A long term two-wheeler insurance plan is one in which the policy term can range anywhere from 2 to 3 years. You do not have to renew your bike insurance every year and the premium charges are fixed for the entire duration of your policy.
Q: Does it make sense to opt for a long term insurance plan?
A: Yes. A long term insurance plan for your vehicle including two-wheelers offers multiple benefits. Firstly, there is a very low chance of policy lapse on account on non renewal every year as is with normal policies. Secondly, the insured declared value or IDV of your vehicle is fixed for the entire duration of the policy from 2 to 3 years. Even the premium is fixed for the entire duration and you do not have to pay any extra premium for each year.
Q: How is the premium charges determined for a bike insurance policy?
A: The annual premium is based on multiple parameters as fixed by IRDA. For a comprehensive two-wheeler bike insurance plan the premium estimate can be broadly categorized as IDV of the vehicle * age of the bike minus any no claim bonus plus the taxation component.
Q: What is NCB in bike insurance?
A: NCB means a no claim bonus which is a bonus offered by insurance companies to policyholders who do not seek a claim during the entire policy tenure. Depending on the number of years of no claims, NCB can go as high as 50% ensuring a discounted premium for future insurance premiums.