Two Wheeler Insurance:
As per the Indian law, it is mandatory for all vehicles driven on Indian roads to have a valid insurance policy. This law is applicable for Two Wheelers as well. Two wheeler insurance refers to an insurance policy taken to cover against any damages that may occur to a two wheeler and/or its riders due to an unforeseen and unfortunate event like an accident, theft or natural disaster. You love your bike like your own baby. Yes, your two-wheeler is an important part of your life. It is your necessity and pride too. Keep your two-wheeler safe and secure. The plan also provides protection against liabilities arising from damages to a third party due to the accident. Two wheeler insurance or bike Insurance is the ideal solution to meet exceptional costs that may arise due to the damages caused to the two wheeler. The bike insurance cover provides protection to all types of two wheelers: scooter, motorcycle, moped and scooty and covers all uses: personal, commercial or mixed.
Types of Two Wheeler Insurance:
Third Party Liability Coverage: According to the Motor Vehicle Act 1988, it is mandatory to have third party insurance which covers the liabilities the insured party has to pay due to damage or injury occurred to any other individual by him/her. It refers to the minimum risks which are covered under the Auto Vehicles Act 1938. The insurance does not cover any damage being caused to one's own property.
Comprehensive Coverage or package Two Wheeler insurance: In addition to covering the damage done to third party in the form of injury, death or damage to vehicle, our own vehicle also get damaged; rider and his co-passenger also get hurt during any accident. Hence it becomes important to have a comprehensive cover. Many plans also cover:
- Damage/Loss due to man-made reasons: Accident by external means, theft, burglary, riots or strikes, malicious acts, terrorist activities, any in-transit damage when the two wheeler is being transported from one place to another.
- Damage/Loss due to natural calamities: Fires, explosion, self-ignitions, earthquakes, floods, inundations, lightning, hurricanes, storms, cyclones, hailstorms, tempests, typhoons, frost, landsides and rockslides.
- Insurance against third party liability: Due to bodily injury or death and damage to the property of the third party.
It is recommended to choose comprehensive plan as it covers maximum things and provide helpful benefits. This type of coverage is the most popular as it offers end-to-end coverage and thus less stress for the policyholder.
Benefits of Two Wheeler Insurance:
As we know that the two wheelers are more susceptible to road accidents than other vehicles. So it is highly important to purchase a comprehensive two wheeler insurance policy for your own safety that can protect you and your vehicle effectively.
Some of the key benefits of two wheeler insurance are:
- Cashless settlement at preferred workshops
- Instant claims assistance and support 24X7
- Third party property damage and third party physical injury coverage
- Coverage of damage/Loss due to man-made reasons: Accident by external means, theft, burglary, riots or strikes, malicious acts, terrorist activities, any in-transit damage when the two wheeler is being transported from one place to another.
- Coverage of damage/Loss due to natural calamities: Fires, explosion, self-ignitions, earthquakes, floods, inundations, lightning, hurricanes, storms, cyclones, hailstorms, tempests, typhoons, frost, landsides and rockslides.
- Covers any damages to the driver and to the pillion rider – In case of demise of the rider, the full amount of the cover is given to the nominees.
- No claim bonus: The insured is rewarded with discount on the renewal premium for every claim free year. It is cumulative and increases every year. It usually ranges from 10% to 50%. It will assist you in saving huge money in the premium also. In case if you have collected a nice no claim percentage then it will assist you in a future claim which you will make.
What is not covered in Two Wheeler Insurance?
- Driving without a valid driving license.
- Accident caused as a result drink and drive or drugs etc.
- Loss or damage if a policy is not in force.
- Damage to tyres and tubes.
- Damage/loss due to war, mutiny or nuclear energy causes.
- Damage to vehicle as a result of not following the Two-Wheeler manufacturer's guidelines.
Important factor that determines the cost of the premium:
City where a vehicle is registered: Two Wheelers in metropolitan cities have to pay higher premiums as the incidence of vehicle thefts and accidents is higher. Zone A=It includes cities like Delhi, Mumbai, Ahmadabad, Kolkata and Chennai Zone B= It covers rest of the country Premium rates are high in cities falling under Zone A as compared to Zone B.
Year of Manufacture: This lets the insurance company assess its Insured Declared Value (IDV) that facilitates the underwriter to decide the annual premium for your Two Wheelers. (IDV or insured declared value is the maximum amount to be paid by an insurer at the time of a claim if the vehicle gets stolen or lost. It is the sum insured which is fixed at the commencement of the policy issuance.)
CC (Cubic Capacity): The size of the engine plays an important role in deciding premium amount that you have to pay for a third party insurance cover. Premium would be same both in new and old vehicles because it is calculated on the size of an engine and not on the basis of its age. Engine capacity is not the criteria used for calculating premium rates for a comprehensive cover. You can find out cc of your vehicle’s engine from its registration paper. Bike insurance premium increases with the increase in the capacity of the vehicle.
No claim bonus: The insured is rewarded with discount on the renewal premium for every claim free year. It is cumulative and increases every year. It usually ranges from 10% to 50%. It will assist you in saving huge money in the premium also. In case if you have collected a nice no claim percentage then it will assist you in a future claim which you will make.
Anti-theft device: If you have installed an anti-theft device approved by ARAI, you can avail the discount on your premium.
6. Gender and profession of the driver are also considered while determining the premium price.
Additional Covers: Additional benefits come with additional cost.
Points to keep in mind While Buying/Renewing Two Wheeler Insurance:
Service centre network: Ensure that the insurance provider has a strong presence in your region.
24x7 Helpline: There should be a toll-free number where you can call in case of emergency and requirement of instant support.
Simplicity of procedure of raising a claim.
Read all the documents carefully: Know what is covered and what is not. The customer just pays the amount which is not covered as part of the insurance claim and the rest of the transaction is cashless. However, it is good to check on the procedure of settlement beforehand.
Always renew your two-wheelers insurance before the due date to avoid the inconveniences such as vehicle inspection as well a potential increase in premium cost.
If your Two Wheeler has any anti-theft device approved by ARAI, then you can get a great discount.
Documentation Required for Two Wheeler Insurance:
Getting a Two Wheeler insured requires minimal documentation. For a new policy, you must submit the filled up proposal form and copy of the Registration Certificate (RC). For renewals, you will need copy of the RC (Registration Certificate) along with the copy of previous insurance policy. It is advisable for you to fill your details carefully as by providing accurate and complete information you will face no issues at the time of a claim.
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