What is Two Wheeler Insurance?
Two wheeler insurance, as the name so aptly describes, provides protection against the financial liability that is likely to be incurred by you in instances of theft, damage or third party damage/death caused by your vehicle. Two wheeler insurance offers you peace of mind, saves your money in cases of extensive repairs or loss of vehicle and is an affordable, scalable and popular insurance product.
Why Two Wheeler Insurance is Required?
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.
- Provides financial protection to you in case your cherished two wheeler is damaged, stolen or is the cause of disability/death of a third party and/or damage to third party property.
- Is mandatory by law- a copy of the two wheeler insurance policy must always be in your person to be readily available for inspection, as and when required.
- By not claiming on your policy, you can avail the No Claim Bonus (NCB) that will further add to your margin and is usually adjusted against the applicable policy premium.
- Offers complete peace of mind in the knowledge that if the worst were to happen, you will not be required to spend exuberantly on the repairs or replacement of your vehicle.
Two Wheeler Insurance - Saving on Premiums Not Benefits
Insurance for Motor Vehicles in India is mandatory by law. This rule holds good for Two Wheelers as well. Insuring your vehicle against natural and manmade perils shields your from monetary liabilities and legal obligations. Before we discuss the types of insurance available for two wheelers in India, we must underline the fact that liabilities arising out of damage to a third party person/property should be covered by insurance. Noncompliance will lead to imposition of fines and may even result in imprisonment if the matter is grave.
Motor insurance for two wheelers are provided for 12 months, renewable just before expiration. There are two types of insurance products available in the market today, based on the features and benefits.
- Liability Only Policy :
Commonly known as third party insurance, it provides cover for injury and/or death of a third party person and damage to a third party property only. It does not provide any compensation for damage to the insured vehicle in case of an accident or a mishap. It does provide relief to the owner-driver in the form of Personal Accident Cover.
Cover for Third party damage is mandatory by law and is covered by various provisions of the Motor Vehicles Act in India.
- Comprehensive Plan or Package Policy :
This is an all-inclusive plan that not only seals the cover against third party liabilities, but also protects damage to the insured vehicle along with Personal Accident cover and other optional Add-ons .
Though cover for the insured vehicle is optional, the Comprehensive plan comes highly recommended due to the ambit of coverage.
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.
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.
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.
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.
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-
- 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 vehicles R.C Book.
- Copy of the DL of the individual driving at the time of accident.
- For theft claims, these additional documents are required-
- 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.
- For third party claims-
- 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 isnt covered by the scope of your insurance policy, then the cost for the same will be borne by you.
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.
A two wheeler insurance policy will guarantee your safety and also monetary security. But, buying a two-wheeler insurance is not easy - you will have to separate the wheat from the chaff before you can apply for the best one. With a plethora of options available in the market, one must consider many factors before selecting the right policy. This is where the third party insurance comparison sites comes into play - you can compare various two-wheeler insurance schemes and the benefits that each policy offers.
When comparing, you will be required to select your preferred insurance provider and the comparison engine will project details like special features, cashless network garages, third party cover, premium amount, exclusions and incurred claim ratio. Based on these information, you can select an insurance policy that best meets your requirements.
Here are some of the factors that you must consider when comparing a two wheeler insurance policy online. The insurance must offer you sufficient coverage for own damage and also third-party accidents. Depending on the coverage offered, you can compare policies using the premium amount. You must also compare the features that the insurance provider offers with the policy - cashless claim services, online renewal and online premium payment facilities. When comparing policies, you must also pay attention to the add-on covers offered by the insurer. Consider the policy exclusions also and then customize two-wheeler insurance policy. Many aggregator sites also offer instant premium quotes which will help you compare the two-wheeler insurance policies more efficiently.
Read more about Top Two Wheeler Insurance Companies 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.
Learn More Related Topic: Benefits of Two Wheeler Insurance Renewal
Is your two wheeler insurance about to expire and you are perplexed whether to renew it or apply for a new one? If you are like most customers, you are most likely considering to just renew the existing one simply to escape the trouble of approaching new insurance companies and going through those dreary comparisons.
For your information, two wheeler insurance firms offer attractive deals to gain customer loyalty.
Steps to Renew Lapsed Two Wheeler Insurance Online:
- Go to their official website and download the insurance renewal form.
- Submit the duly filled form and one of the company executives will contact you at the earliest.
- Premium payments can be made online.
- If you do not hear from the firm in 2 days, get in touch with their customer care service via email or phone and inform them of the same.
Read more about Renew Expired Two Wheeler Insurance Policy Online?
This is an ideal time if you are wish to save thousands of rupees on two wheeler insurance premiums. Cut-throat competition has impacted the vehicle insurance market too and insurance firms are vying to reduce the premium amounts to entice more customers.
Leaf through decent insurance quotes: Premium sum varies with each company and it is advisable to shop around both online and elsewhere to shortlist a few. You might stumble across unbelievable seasonal offers with less risk factors and the add-on covers you want. Please take into consideration all the above aspects including that of No Claim Bonus feature before making a decision.
Calculating 2 wheeler insurance premium:
- Go to the official website of the insurance provider and choose a plan.
- Make use of the online premium calculator and enter the required information.
- All your premium details will be shown instantly or sent to you.
Learn More Related Topic: How To Calculate Two Wheeler Insurance Premium
Renewing Two Wheeler insurance is no longer a tedious process. With rapid progress in technology and availability of internet connectivity in various forms, processes are getting simpler. One of the most frequently searched topics on search engines is about how to pay for insurance renewals online.
Insurance companies let you renew the expiring two wheeler insurance cover online for free. In just under few minutes you can not only renew the policy, but also make a payment using your Credit/Debit card or Net banking account. Some insurers may also allow you to make a payment through other gateways. It works akin to purchasing a product on an ecommerce website.
Websites are hosted in a highly secured environment, safeguarding your bank details from fraudsters and hackers.
- 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.
- 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
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.
If you wish to buy a two wheeler policy online, there is only minimum documentation which you are required to provide. You will be required to provide the details of your previous two wheeler insurance policy, the Registration Certificate details of your vehicle.
An insurance policy holder, you are entitled to a No Claim Bonus (NCB) only at the time of renewal of your policy, after it has expired following a full 12 month period. In case you have not made any claims on your policy while it was active, you are entitled to a No Claim Bonus, which will be provided to you based on a pre-determined tariff. You can earn a No Claim Bonus on the Own Damage section of your policy which covers all classes of vehicles. NCB is not applicable on Motor Trade Policies which cover road transit risks, road risks, and internal risks. Also, it is not applicable on motor policies which only provide cover against fire or theft related risks.
Many insurance providers now allow customers to apply and generate a policy online. If you have applied for your policy online, you can easily log on to the insurance provider's website and click on your profile. Here, a soft copy of your insurance policy will be available which will also serve as a valid policy document.
A policy holder can generally make a Personal Accident Claim only if the policy is in their (policy holder's) name, making the policy holder the registered owner of the vehicle and has a paid driver / unnamed passenger / owner-driver Cover.
Some of the common factors which canaffect or reduce your two wheeler policy premium are:
- Add-on covers taken over the policy
- Whether you have taken a Comprehensive Cover or Third Party Cover
- Vehicle's Cubic Capacity (CC)
- Vehicle Model type
- Place of Registration (Zone A / Zone B)
- Age of the vehicle
- Insured Declared Value (IDV) i.e. the present market value of the vehicle.
A Cashless Claim does not involve any physical exchange of cash during claim settlement. The insurance company directly pays the garage (if it is under the insurer's garage network) for the charges involved in the repair of the vehicle.
A Non-Cashless / Reimbursement Claim is one where the policy holder has chosen a garage which is not part of the insurer's listed network of garages. Here, the policy holder will be required to make bear the cost of repairs done to the vehicle, which will be later re-imbursed to the policy holder by the insurance provider, on submission of the original receipts or bills.
Yes, insurance providers usually allow policy holders to obtain additional cover for any accessories which may have been fitted later on. All you need to do is send your insurance provider a written request for the same and also share the details of the accessories which you have gotten fitted. Cover for accessories is likely to add to your existing premium cost.
In case of an accident where repairs to the vehicle cost more than the present value of the vehicle itself, such an event is termed as a Constructive Total Loss.
Yes, you will be eligible to make a claim even if your policy has expired, if the damage took place during the policy tenure.
Nil Depreciation is a special component of motor insurance policies wherein the cover entitles you to a full (100%) replacement on the parts of the vehicle which have undergone depreciation at the time of settlement of the claim. This does not include tyres and tubes. Nil Depreciation cover may be provided by the insurer only on select models of vehicles, with/without an age limit.
If the damage sustained by your vehicle following an accident is minimal, it is advisable not to make a claim as it will help contribute towards obtaining a No Claim Bonus for a claim-free year. Further down the line, if you haven't made any claim on your insurance policy for a few years, it can reduce your insurance premium by half.
If you plan to move to another location or change your job, your insurance policy remains more or less unaffected. You will need to provide your insurance provider with the updated details regarding your job, address, contact details, etc. Also, another thing which might change is your insurance premium. Insurance premiums are determined, among other factors, on the basis of the zone of the vehicle. All major metro cities like Mumbai, Pune, Delhi, Hyderabad, Bangalore, Kolkata, Ahmedabad, and Chennai are categorized as Zone A cities. Rest of the cities are categorized under Zone B. So, in case you are moving from a Zone b city to a Zone A city, then your insurance premium is likely to increase.
Electrical accessories may be defined as any accessories which are powered electronically. Electrical accessories which are not part of the vehicle's standard equipment and have been fitted additionally, can be easily covered by payment of an extra premium.
Non-electrical accessories may include accessories like seat covers, foot rests, etc., which are not factory fitted. These can also be covered on the payment of an extra premium.
News About Two Wheeler Insurance
Survey reveals that 60% of car owners make an insurance claim only when their car has undergone huge damage
According to a new survey, car owners only make insurance claims when their car has been damaged very badly. The survey reveals that Kolkata is the only exception, where 69% of the people responded that they would make a claim even for small damages.
Another fact that came out with this survey is that most people are not completely clear about the claim process. In Ahmedabad, the familiarity was highest at 52% followed by 46% in Bangalore.
Although most people know about third party insurance cover and own damages (80% bike owners and 76% car owners), only 40% of the people have ever availed the cover.
22nd January 2016
Pillion riders protected under bike insurance plan
It is ironical that all the passengers are covered for car insurance, but when it comes to bike insurance, pillion riders are often not compensated. Putting an end to a long-lasting disagreement over the accountability of insurance firms, a Division Bench of the Kerala High Court has stated that insurance carriers are responsible to compensate pillion riders as per the standard package two wheeler insurance plan in personal accident claim cases. The Bench comprised of Justice K. Harilal Justice and P.R. Ramachandra Menon, who lately directed that there need be absolutely no doubt about the fact. A comprehensive cover is bound to provide the same for all the passengers (i.e. the rider as well as the pillion rider). The court declared this while permitting a writ petition filed by Mr. K T Francis from Aluva, a pillion rider, against the order of a motor accident claims tribunal in Perumbavoor that absolved the insurance firm from any kind of financial accountability. The ruling was in favour of Francis citing that as long as they are travelling in the same vehicle, the victim should be duly compensated.
11th November 2015
Save 5 percent on two wheeler insurance by opting for a longer tenure
Previously, long-tenure two wheeler insurance plans were not looked upon with favour. But as of now it has its special perks too. Unlike other covers, two-wheeler insurance plans come for not a mere one and two years’ term, but also for three years. The policyholder can avail a 30 percent rebate on the three-year plan. Sounds unbelievable? That is not all, if there is an extra prerogative owing to no claim in the previous year, the rebate can go up to 50 percent. This statement was made by the Chairman of New India Assurance, Mr. G Srinivasan himself. The firm has been offering a 20 percent deduction for their two year plans on both the third party cover as well as own damage cover. Only, the customer has to shell out the premium upfront. And the claims filed during the insurance term would not negatively affect the premium in any way.
5th November 2015
Lady gets INR 8 lacs claim after 5 years
This is the success story of W Geetha Diamond’s battle with the insurance company for compensation for an accident that incurred by no fault of hers.
Five years post enduring grave injuries in a motor accident, the insurance claim case was ruled in her favor. She is to receive 8 lacs as claim payment as it was proved that the mini-lorry that knocked her down was being driven in quite a neglectful way. The truck in question as well as her two wheeler were duly indemnified.
The ruling for favorable two wheeler insurance for the grieved was passed by Sub-judge J Chandran of the Motor Accident Claims Tribunal as the truck driver could not provide any evidence to prove otherwise. The case was registered by the St Thomas Mount Traffic Investigation Wing. There were witnesses who said that they had seen the lorry driver running the red light in a heavily traffic-jammed area.
27th August 2015
Hikes in Third Party Two Wheeler Insurance Premium Rates
Auto insurance premiums will escalate to 30%, based on the vehicle make soon. The Insurance Regulatory and Development Authority of India (IRDAI) has announced the renewed motor third party insurance premium rates. The officials had decided to keep the hike moderate for private & goods vehicles and 150-350 cc bike.
Likewise, for bikes that exceed 350 cc, and goods & public vehicles, IRDAI has recommended the following rate revisions.
Private cars below 1000 cc – INR 1468
Private cars between 1000 and 1500 cc – INR 1598
Private cars above 1500 cc – INR 4931
Bikes below 75 cc – INR 519
Bikes between 75 and 150 cc – INR 538
Bikes between 150 and 350 cc – INR 554
For bikes beyond 350 cc, there has been no change in premium rate which is INR 884.
6th August 2015
'Learner’s Licence Legal for Claims', Kerala High Court
KOCHI: Reiterating that learner’s license is a legal document, the Kerala High Court has ruled that insurance firms should not reject any claim on that account. As learner’s license allows an individual to ride the vehicle in the presence of another person with a valid license, no insurance issuer can shy away from paying the compensation. This statement is passed by Justice K P Jyothindranath and Justice T R Ramachandran Nair after an appeal was filed by Oriental Insurance Company which had rejected a two wheeler insurance claim.
5th August 2015
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