If you own a two wheeler (bike, scooter etc.) in India, then, a comprehensive Two Wheeler Insurance policy has always been an essential pre-requisite. This thoughtful policy serves the vast majority of motorists on the Indian roads (two wheelers number more than four wheelers) by offering them complete protection against natural and man-made calamities. Accidents happen without warning, and most times we are caught unaware. Two Wheeler Insurance ensures that in case of an accident or untoward event that impacts your cherished vehicle, you are prepared- financially and mentally.
About Two Wheeler Insurance in India
2 Wheeler Insurance is an important component of the motor insurance ecosystem. In a rapidly digitizing scene, two wheeler insurance online has made it very easy for customers to purchase and/or renew the policy quickly, and with the least expenditure of time, money and patience. In the following sections, read all about 2 wheeler insurance in India, the various players in this competitive field and what it takes to qualify for a loan. Read on…
Bike Insurance Features & Benefits
An average, comprehensive two wheeler insurance policy in India will offer the following features and benefits. Note that this is just a generalized list, and companies in their individual capacity may offer slightly differing options,
- Signing up for a 2 wheeler insurance policy is simple and involves limited documentation and quick turnaround times.
- When it comes to online two wheeler insurance, a confirmation copy and digitally signed policy document is issued immediately after subscription or renewal. Stay protected, at all times.
- Avail cashless claims servicing across the country, at selected network garages.
- Aside from personal accident cover for the driver/owner, co-passengers are also eligible for optional personal accident cover.
- No Claim Bonus (NCB) is applicable on renewals if the insured abstains from raising a claim through the previous policy year.
- Option to shift your two wheeler insurance from one insurer to another, while also taking along your accumulated NCB amount.
- Discounts apply on renewal if the applicant is a member of specified automobile or biking associations, has implemented specific anti-theft devices in his/her two wheeler, or satisfies other such conditions.
- Aside from the main comprehensive 2 wheeler insurance policy, a plethora of add-on covers are available to take care of conditions and situations that aren’t covered in the main policy.
2 Wheeler Insurance Coverage
A good insurance policy is an effective shield against the uncertainties of life. A good two wheeler insurance is solid protection against a number of unexpected events that negatively impact your bike or scooter. What are these ‘events’ against which your vehicle holds protective coverage? The primary list is as follows-
- Damage or Loss of Vehicle due to Natural Reasons- These include fire, self-ignition, lightning, flood, cyclone, landslide, earthquake, frost, inundation, etc.
- Damage or Loss of Vehicle due to Man-made Reasons- These include theft, riot, strike, terrorist activity, malicious acts, damage caused when transported by road, rail, elevator, etc.
- Personal Accident Cover- The applicable conditions include injuries caused when driving, travelling on, mounting and/or dismounting from the 2 wheeler. The coverage amount ranges upto Rs.1 lakh. Also, this cover is available to co-passengers as an option.
- Third Party Liability- This coverage applies in cases wherein your two wheeler was involved in or caused an accident that resulted in the injury, death and/or damage to third party. This coverage isn’t applicable to you, but the unfortunate victim of an accident that involves your two wheeler.
Policy Exclusions- What isn’t Covered?
The following conditions aren’t usually covered as per the two wheeler insurance coverage. Kindly note that this is a generalized list, and banks in their own capacity can impose additional exclusions.
- Depreciation or any consequential loss.
- Breakdown of the mechanical or electrical nature.
- Normal wear and tear due to normal usage and ageing of the vehicle.
- 2 Wheeler being used in ways that violates the terms set in the limitations as to use.
- Injury to driver and/or damage to vehicle when driven without a valid license.
- Injury to driver and/or damage to vehicle when driven under the influence of drugs, liquor or other mood altering substances.
- Loss and/or damage to vehicle due to war, mutiny or conditions involving nuclear energy.
- Damage to tyres and tubes of the 2 wheeler. However, if this damage occurs in a bigger accident that is covered by the main policy then the insurer is responsible for 50% of the cost of replacement of said parts.
Claim Process of Bike Insurance Policy
A ‘claim’ refers to the instance when you intimate your 2 wheeler insurer about an accident, injury caused by an accident, or any other such situation involving your vehicle, and expect the insurer to extend a financial coverage for the said accident. The process to raise such a claim is pretty straight forward, and involves the following timely steps-
Immediately After the Accident-
- Note down the numbers of the other vehicles involved in the accident. If there are witnesses, do note down their names and contact details as well.
- Contact your insurer immediately. Usually, the insurer will have a 24x7 call center that can be reached.
- The customer support executive will register your claim and provide you a tracking number. Also, he/she will provide you information about the nearest network garage where you can take your vehicle for repairs.
- If there is property damage, bodily injury and/or theft, file an FIR at the nearest police station.
In the Following Hours-
- Your insurer will contact you to detail about the ensuing procedures. This call will ideally reach you within 24 hours after registering the claim.
- Submit the following documents to your dealer for verification-
- Duly filled claim form.
- Copy of vehicle’s R.C Book.
- Copy of the DL of the individual driving at the time of accident.
- R.T.O paper that is duly verified by the local R.T.O.
- If the car is hypothecated, a NOC letter from the finance company.
- Letter of Indemnity & Subrogation as issued by a notary.
- Legal notice that was sent to you by the third party.
- All original documents as required for verification.
- Your vehicle will be assessed by an expert from the insurance company and a spot approval issued.
- Post the repairs, the insurance company settles the costs directly with the network garage.
- If additional work was done on the 2 wheeler that isn’t covered by the scope of your insurance policy, then the cost for the same will be borne by you.
Tips- Save Money, Breathe Easy!
- Compare the available 2 wheeler insurance options before you buy. A third party comparison website like BankBazaar.com can help you here. Comparison helps you find an option that works the best for you.
- Including anti-theft devices in your vehicle do two things- a) Reduce your premium amount, b) Save your precious 2 wheeler from theft.
- Intimating an accident to your insurer is top priority. In the heat of the moment, don’t let this crucial detail slip your mind.
- Servicing your damaged vehicle at a network garage is cheaper on your pocket. Plus, a lot less documentation.
- Keep copies of all essential documents handy- you never know when any of it will be required.
- Observe traffic rules and ride safely. Nothing saves your money better than avoiding accidents.
Two Wheeler Insurance Renewal Online in India
Renewing a two wheeler insurance policy is no longer a cumbersome process. With insurers offering “Online Renewal” on their web portals, the process is a cake walk. Of course, the conventional method of renewing offline, at designated offices still holds good.
To save time and money, online renewal is the most recommended/preferred method as it is convenient and quick. Before renewing online, details and documents such as existing policy document, Registration certificate, and bank/card details should be available to make sure there are no hassles during the process.
Simply log into the web portal of the insurer and use the relevant section to initiate the process. Provide the required details and ensure correctness of information provided before submission. You can use net banking/credit card to make a payment. In just under a few minutes, the new policy document is instantly available for download/print. Preserve this copy and look forward to a sealed hard copy that will be mailed by the insurer as per the timeline.
Tip: Keep a track of the two wheeler insurance cover and renew before expiry to ensure continuity in cover and also to avoid additional inspection charges.
FAQ of Motor Cycle Insurance
Can my 2 wheeler insurance be renewed online?
Yes. Most insurers offer this facility as one of the USP. Ideally, online renewal must be carried out within a maximum of 6 days after the lapse of the policy, or 2 months before the policy expiry.
Can I buy a 2 wheeler insurance policy for a vehicle that doesn’t belong to me?Yes. Anyone can buy a two wheeler insurance online, or from an offline source, for a vehicle that may not necessarily be their own.
Are modified 2 wheelers eligible for such insurance policies?
When it comes to modified 2 wheelers, the 2 wheeler insurance only applies to vehicles that have been modified for use by handicapped individuals. In such instances, a discount of 50% is applicable on the own-damage premiums, as offered by many Indian insurers.
What are the factors that impact the applicable 2 wheeler insurance premium amounts?
- Type of 2 wheeler
- Age of the vehicle
- City where registered
- Coverage period (when <12 months)
- Any applicable discounts
When must I report an accident to the police?
Incidents that resulted in third party property damage, bodily injury to self, bodily injury or death of third party and theft must be reported to the nearest police station and an FIR generated. This document will be crucial in the ensuing claim process.
News About Two Wheeler Insurance
Is Long-term Insurance Cover for your Two Wheeler a Necessity?
Despite the fact that driving a two-wheeler on Indian roads without a third party liability insurance is illegal, only a third of the 10 crore two-wheelers in India are insured. Even though a comprehensive two-wheeler insurance cover for a 150cc bike will average around Rs.1000 to Rs.2000 for a declared value of Rs.30,000, bike owners are reluctant to take a cover. But thanks to the mandatory clause and discount offers from auto dealers, most of the new two-wheelers now hit the roads only with an insurance policy. By the second year, bike owners eventually end up not renewing their policy owing to the hassles and the cost involved. Last year, in a move to combat non-renewals, IRDS introduced long-term two-wheeler insurance policies with tenures ranging up to three years.
India’s largest general insurer, the New India Assurance, has become the first to roll out policies with two to three years tenures. However, option for a long-term policy is only an option and is not mandatory. The pros of having a long-term two wheeler insurance policy is that customers needn’t worry about renewing the policy year-on-year and that they will eligible for a 30% discount on the cover as well as no-claim bonuses post the tenure. The only flipside of having a long cover is that if the premium goes down, the policyholder will be locked in a cover with higher rate without having any chance to improve the cover.
20th July 2015