Two-Wheeler Insurance Details

Why is Two-Wheeler Insurance Essential in India?

Two-wheeler insurance is a mandatory criterion to legally drive on Indian roads. Some of the reasons explaining why it is important are given below:

1. You can Avoid Financial Stress: In case your vehicle is damaged or stolen, you won’t have to worry about the costs incurred in fixing it or replacing it as the insurance company will take care of it.
2. You will have Theft Coverage: Some two-wheeler insurance policies also provide theft coverage. This ensures financial protection if your scooter or bike is stolen. In case your two-wheeler is not recovered after being reported stolen, the insurance company will compensate you as per the Insured Declared Value (IDV) of the vehicle.
3. You will have Legal Protection: Considering the fact that it is compulsory to have an insurance policy in place when riding on Indian roads, carrying a copy of your insurance policy will ensure that you will be legally protected against paying fines or penalties.
4. You will have Legal Protection: In India, it is mandatory to have a two-wheeler insurance to legally drive on road. Having a two-wheeler insurance ensures you remain legally compliant and helps you avoid fines or penalties.

1. You will Receive Personal Accident Cover: If you are insured, the insurance company will provide cover (up to a certain amount) in case you suffer total permanent disability. In case the policyholder passes away, your family will receive the sum assured from the insurance company.
2. No Claim Bonus: You will be able to enjoy benefits like No Claim Bonus (NCB).
   

Types of Bike Insurance

There are two kinds of two-wheeler insurance policies, viz. comprehensive plans and liability-only plans.

Inclusions of Two-Wheeler Insurance

The policy document will cover all the inclusions and exclusions of your motorcycle insurance plan. The following are the inclusions of a two-wheeler insurance policy:

1. Natural Events: A bike insurance policy provides coverage for damages caused by natural calamities such as fires, earthquakes, inundations, hurricanes, self-ignitions, floods, storms, lightning, hailstorms, frost, cyclones, tempests, rockslides, etc.
2. Man-Made Events: Two-wheeler insurance policies also cover loss or damage due to man-made events like burglary, strikes, and riots, including when the vehicle is being transported by road, rail, air, or waterways.
3. Legal Third-Party Liability: Any legal losses suffered as a result of third-party injuries are covered by a 2-wheeler insurance policy. In addition to provide protection against damage to third parties' properties, it also covers the death of a third party.
4. Personal Accident Coverage: In case the owner or a driver of a two-wheeler meets with an accident, a personal accident cover to the extent of Rs.1 lakh will be provided as cover for permanent or temporary disabilities or loss of limbs resulting in total or partial disability.
5. Theft Coverage: Some insurance policies also offer theft coverage for your two-wheeler. In such cases, if your stolen vehicle is not recovered even after being reported, the insurance company compensates you based on the Insured Declared Value (IDV) of the vehicle after deducting applicable depreciation.

Note: The inclusions offered with two-wheeler insurance vary depending on the insurance company and the policy variant. It is advisable to read the policy document carefully before purchasing it.

Exclusions of Two-Wheeler Insurance

The following are the general exclusions of a two wheeler insurance policy:

1. Damages incurred by normal wear and tear of the two-wheeler.
2. Losses incurred due to electrical or mechanical breakdowns.
3. Damage to tubes and tires.
4. Consequential losses or depreciation from regular use of the vehicle.
5. Losses incurred by the vehicle when it was being used for illegal purposes.
6. Damages or losses incurred by the vehicle when it was being used by someone who does not have a valid driving license.
7. Damages or losses incurred by the vehicle when the driver was using the vehicle under the influence of drugs or alcohol.
8. Damages or losses incurred by the vehicle due to mutiny, war, or from nuclear risk.

Depending on the type of coverage you buy, a bike insurance plan offers protection against liabilities that result from injuries to the rider, the pillion passenger, as well as third parties. It is crucial to evaluate plans offered by different insurers in order to choose the most affordable two-wheeler insurance policy with sufficient coverage.

Bike Insurance Premium Calculator

A lot of insurance companies offer online tools like a two-wheeler insurance premium calculator. Using this makes it easy for you to estimate your bike’s premium. As long as your vehicle is registered with the Regional Transport Office (RTO), you can quickly calculate the applicable premium online using these tools. Follow the steps given below to calculate the amount of your insurance premium:

Step 1 - You need to enter details regarding your two-wheeler, such as the number of the vehicle, the make, the model, the variant, etc.

Step 2 - The registration details of the two-wheeler must be entered, such as the RTO location where the vehicle was registered.

Step 3 - You will have to provide information related to your existing policy. You will also be required to mention your claim history and policy expiry date.

Step 4 - Choose between third-party insurance and comprehensive insurance

Step 5 - Click on ‘Get Quotes’.

Two-Wheeler Insurance Add-on Covers

The majority of insurance providers bundle extra coverage with their bike insurance policies. Each add-on cover has its own advantages, giving you the freedom to choose only those that will meet your specific insurance needs.

The available optional riders are as follows:

1. Personal Accident Cover for Pillions: When you supplement your bike insurance policy with a personal accident cover for the pillion, your financial liability can be lowered significantly in case of accidents where the pillion rider is injured. This add-on feature provides coverage for the death or permanent or partial disability of the pillion rider.
2. Roadside Assistance: When you choose the roadside assistance as an add-on cover, you can get help anytime in case your vehicle breaks down or faces a mechanical issue. This cover provides services such as on-the-spot repairs, free towing, and other emergency support, making it especially useful when you are travelling in remote areas where assistance may not be easily available.
3. Accessories Cover: Having this add-on cover will provide coverage for all the accessories of the two-wheeler, electrical or non-electrical. In case any of the accessories of the vehicle are damaged, the rider will cover the cost of repairing or replacing it.
4. Consumables Cover: The consumable cover can be of great help when it comes to receiving compensation for costs incurred on nuts, bolts, engine oil, etc. Since consumables are not covered under basic two-wheeler insurance policies, purchasing this optional rider will ensure that you are financially covered for the aforementioned costs.
5. Zero Depreciation Cover: The full claim amount won't be covered by either a liability-only insurance policy or a complete two-wheeler insurance policy, regardless of which one you choose to buy. The insurance company subtracts depreciation, and only the balance is paid out.

However, if you add a zero-depreciation cover to your bike insurance policy, the depreciation factor will be removed and you will be entitled for the full claim amount.

1. Daily Cash Allowance: The daily cash allowance add-on cover is ideal for those who commute solely on two wheelers. In case your bike is seriously damaged and is undergoing repairs at a garage, you may have to incur out-of-pocket expenses to travel without it.

Adding the daily cash allowance cover to your two-wheeler insurance policy will mean that your insurer will give you a certain amount of money per day to meet your travel expenses.

1. Engine Cover: The engine cover can come in very handy if the engine of your two-wheeler or the ancillary circuit gets damaged because of flooding or waterlogging. Considering the cost of repairs to engines can extend to several thousands of rupees, the engine cover will cover these expenses and allow you to have total peace of mind.
2. Return to Invoice Cover: When you purchase a two-wheeler, there is always a risk that it could be stolen. Since the value of every machine depreciates over time, the value of your bike will be relatively lower after a period of, say, six months.

However, purchasing the return to invoice cover to supplement your motorcycle insurance policy will mean that you will be reimbursing the actual value of the vehicle in case it is stolen or suffers total loss due to natural calamities or theft.

Claim Settlement Process for Two-Wheeler Insurance

The procedure mentioned below will help you with the claim settlement process for two-wheeler insurance through reimbursement claim and cashless claim:

Reimbursement Claim Settlement Process

Step 1 - File a claim with your insurance company.

Step 2 - Complete the claim form. Send the completed form and necessary documents to the insurance company.

Step 3 - The insurance company will conduct a survey to determine the cost of repairs and will inform you about the results.

Step 4 - After the survey is completed, you can get your vehicle repaired at a garage that is not registered with your insurance company. 

Step 5 - The insurance company will conduct another inspection after the repair of your vehicle is done.

Step 6 - Clear the bill at the garage by paying all the fees.

Step 7 - Send the insurer all the invoices, payment receipts, and ‘Proof of Release’.

Step 8 - The claim amount will be paid to you once it has been accepted.

Cashless Claim Settlement Process

Step 1: You need to first inform your insurance company about your two-wheeler's accident and file an FIR. 

Step 2: Your insurance company will conduct a survey regarding the accident.

Step 3: Complete the claim form, then submit it with all necessary supporting documents to your insurance company.

Step 4: After the insurance company approves your request, your vehicle will get repaired at a garage associated with your insurance company.

Step 5: After repairs, your insurance will pay the garage directly for the repair costs.

Note: Deductibles and other costs that are not covered must be met by you (if any).

Documents Needed for Filing Bike Insurance Claim

The documents needed for filing bike insurance claim are mentioned below

1. Completed and signed claim form
2. Valid copy of Registration Certificate (RC)
3. Valid driving license
4. Repair invoice and original payment receipt
5. Valid two-wheeler insurance policy
6. Proof of release (in the event that a reimbursement claim is settled)
7. Accident, theft, and third-party liability police reports

Note: The list of documents given above are in general and you may be required to submit additional documents depending on your insurance provider.

Process to Purchase Two-Wheeler Insurance Online

The procedure that must be followed to purchase a two-wheeler insurance cover online is mentioned below:

Step  1 - Visit the official website of the insurer.

Step  2 - Select bike insurance or two-wheeler insurance.

Step  3 - Enter the vehicle number.

Step  4 - Choose ‘Get Quote’.

Step  5 - The vehicle details will be displayed.

Step  6 - Choose the add-on covers that are needed and the type of insurance cover to get the quote.

Step  7 - Make the payment to purchase bike insurance cover.

Factors to Keep in Mind While Choosing Bike Insurance

Below are a few factors that one should keep in mind while choosing a bike insurance -

Simplicity of Transferring No Claim Bonus: In case you purchase a new two-wheeler, transferring the No Claim Bonus is a process that has been made relatively simple by insurance companies. The bonus is transferred in the name of the owner or the driver of the vehicle, and not the vehicle itself.

The No Claim Bonus is given to drivers and vehicle owners because of the safe driving practices followed by them and not making any claims in the previous year(s).

Optional Covers: Optional covers include increased cover for accessories and spare parts, personal accident cover to protect pillion riders, zero depreciation cover, etc. You can purchase these covers at a nominal fee and increase the level of protection for your vehicle. These covers come in handy in times of unfortunate or unforeseen events.

Discounts: Insurance companies approved by the Insurance Regulatory and Development Authority of India (IRDAI) offer discounts for factors such as membership in recognised automobile associations, vehicles fitted with approved safety devices like anti-theft systems, and a good riding record through No Claim Bonus benefits.

Online Purchase and Renewal: Bike insurance plans can be purchased and renewed online with relative ease. Many insurance companies also have mobile apps that make it convenient for customers to purchase or renew their policies. Considering the fact that all details of the policy are stored in the database, the renewal process is relatively simple and happens very quickly.

Customer Care: When picking an insurer, one of the important things to look for is a team that provides client service around-the-clock. The term spontaneous customer assistance’ refers to their willingness to help you whenever you need it with all of your questions and claim resolutions.

KYC Documents Needed to Buy/Renew Bike Insurance

The KYC documents needed to buy/renew bike insurance are mentioned below -

1. Identity proof documents (Passport, Aadhaar card, PAN Card, driving license, Voter ID)
2. Address proof (Passport, Aadhaar card, driving license, Voter ID)

Features of Two-Wheeler Insurance

The following are the key features of a two-wheeler insurance policy:

1. Bike insurance policies are categorised as motor insurance policies that are part of the general insurance industry.
2. Motorcycle insurance plans provide financial coverage against damages incurred by the insured vehicle as well as theft of the vehicle.
3. In case your two-wheeler insurance policy has expired, all the damages incurred by your vehicle will have to be borne by you.
4. Bike insurance plans offer coverage against natural disasters as well as man-made calamities such as earthquakes, storms, landslides, riots, theft, explosions, strikes, etc.
5. In case of the loss or theft of your vehicle, a pre-determined sum assured up to the Insured Declared Value will be provided to you.
6. When purchasing a bike insurance policy, you will be required to pay a pre-specified premium to the insurance company over regular intervals of time for a certain period.
7. Premium rates are cost-effective and can be negotiated with the insurer at the time of purchasing the policy. 
   
8. Discounts of up to 70% of the premium can be claimed through the no-claim bonus offered by most two-wheeler insurance companies.

You can choose the kind of coverage you require from liability only and comprehensive two-wheeler insurance plans. The Indian Motor Vehicles Act has made it mandatory for all vehicles to be covered by a liability only policy. It provides coverage against wear and tear of your two-wheeler.

Read more about 6 Benefits of Two Wheeler Insurance Renewal

What are the Consequences of Not Buying Two-Wheeler Insurance?

As per the Motor Vehicles Act 1988, it is mandatory for all two-wheeler owners to have at least a third-party insurance. Some of the consequences of not having a two-wheeler insurance are as follows: 

Legal Consequences: Depending on the severity of the offense and the discretion of the authorities, you may have to pay hefty fines for riding a two-wheeler without a two-wheeler insurance policy. You may have to face legal complications, including potential court cases and legal proceedings if you do not have valid two-wheeler insurance.

Financial Consequences: If you don’t have two-wheeler insurance, you will have to bear high repair or replacement costs in case of an accident. You will also miss out on ‘No Claim Bonus’ benefits, leading to higher premiums later. Moreover, you will have to fully bear third-party liabilities (if any); this also includes medical, legal and property damage expenses.

Personal Consequences: If you don’t have two-wheeler insurance, you will have no personal accident or medical coverage. In this case you will have to bear all treatment, repair, and replacement costs yourself in case of an accident. This can lead to heavy financial strain and significant mental stress.

How to Compare and Choose a Two-Wheeler Insurance Policy?

Choosing the right insurance policy is an important decision and involves a lot of research. Here are the few points that can help you understand which policy suits you better and will be helpful: 

1. Type of Cover: You need to understand what type of cover you need. You can either choose a third-party insurance, which is mandatory by law, or you can choose a comprehensive insurance as it offers wider protection, including damage to your own bike due to accidents, theft, fire, or natural calamities. 

1. Check the Premium Amount: It is essential that you do not choose a policy just because it is cheap. You need to compare policies of different premium amounts and what facilities they are offering to make the right choice. 

1. Check the ‘Claim Settlement Ratio’: This ratio helps you understand the number of claims settled by the company. Check out the insurer’s claim settlement ratio, availability of cashless garages, and ease of filing claims online or offline to make an informed decision. 

1. Check Customer Reviews: It is essential that you check customer ratings and reviews before purchasing a policy. This will give you insights into the insurer’s service quality, claim handling, and overall customer satisfaction. 

How to Check Bike Insurance Online?

In order to check details of the bike insurance policy online, you will need to visit the official website of the insurer. You can check the premium as well by entering details of the two-wheeler such as the registration number, year the bike was manufactured, NCB, etc.

How to Renew Bike Insurance Online?

The renewal of your 2-wheeler insurance policy can be done with relative ease online. Insurance companies across the country have their own websites where you can login and renew your bike insurance policy onliine . In fact, many insurers have also tied up with mobile payment vendors to make it more convenient for customers to renew their policies.

Moreover, technologically advanced companies have their own mobile applications that make it very simple for bike owners to purchase and renew their policies online.

Renewal Two-Wheeler Insurance at a Branch

If you want to renew your two-wheeler insurance policy in the old-fashioned way, stop by a branch of the insurance provider. Even while the procedure to renew your bike insurance plan at a branch of the insurance company is straightforward, you will still need to set aside some time to get to the branch.

To complete the application form, you will need to bring your old policy and information on the vehicle with you. If you pay your premium by cash, demand draft, or debit card at a branch office when renewing your insurance coverage, the new policy will be provided to you right away. If you choose to pay the premium with a check, your policy will be mailed to your residential address later after taking some time to clear.