What is Two Wheeler Insurance?
Know more about Bike Insurance
- How to Calculate Two Wheeler Insurance Premium in India
- Third Party Two Wheeler Insurance In India
- Why Get Your Bike Insured?
- 6 Benefits of Two Wheeler Insurance Renewal
- How to Renew Lapsed Two Wheeler Insurance Policy Online?
- Is Bike Insurance Mandatory in India?
- Zero Depreciation Cover for Bike Insurance
- A Beginner’s Guide to Two Wheeler Insurance
- Importance of Two Wheeler Insurance
- Tips to Reduce Bike Insurance Premiums
- How to Cancel Two Wheeler Insurance Policy?
- Long Term Two Wheeler Insurance
Two wheeler insurance, as the name suggests, is an insurance policy that provides protection from any liability or damage to an individual or property by your two wheeler (such as a scooter, motorcycle, moped etc.). It protects and covers the cost of damage to your vehicle due to unforeseen incidents such as accidents, man-made or natural calamities, theft etc.
2 wheeler insurance provides financial assistance and protection in the event of any incident affecting the insured two wheeler as well as if any damage is caused to any property or person by the insured two wheeler, thus saving the owner from paying a large amount of money if such situations arise.
Types of Two Wheeler Insurance in India:
Insurance companies offer a range of policies to suit different requirements. Owners of two wheelers can choose a policy that best suits their budget and requirements. Insurers in India offer customers two types of two wheeler insurance, which are explained below:
1. Liability Only Insurance:
As the name suggests, liability only insurance provides insurance coverage in case of damage caused by the insured vehicle to a third party. Third party insurance is compulsory under Indian law and all two wheelers are required to have this form of insurance.
Liability only insurance covers the legal cost arising out of damage resulting in personal injury, property damage or death to a third party due to the insured vehicle.
Along with covering the cost of damage due to an accident or incident, most insurance companies also offer accidental death cover to the owner of the insured vehicle. This is an additional benefit that is offered to two wheeler owners. This serves as an additional cover in the event the owner is injured, with the insurance company covering the cost up to a certain limit.
Liability only insurance policies provide coverage largely to the third party and does not offer much in the way of protection for the two wheeler or the rider. However, premiums for liability only cover can be purchased from a number of leading insurance companies at an affordable rate. The cover can be purchased for a year and renewed annually.
2. Comprehensive Insurance:
Comprehensive two wheeler insurance provides coverage for third party liability as well as protection for the insured two wheeler and rider. Comprehensive two wheeler insurance covers damage to the vehicle arising out of natural and man-made calamities as well as coverage for the owner and rider.
Comprehensive bike insurance provides complete protection in the event of an accident resulting in partial or total damage to the insured vehicle. It also covers the owner and the co-rider (included as an add-on) through personal accident cover.
The damages covered by a comprehensive two wheeler insurance policy are listed below:
Natural calamities: partial or total damage arising out of the following are covered:
- Lightning strike.
Man-made calamities: partial or total damage arising out of the following are covered:
- Aggressive acts by an external force.
- Wilful damage.
- Malicious acts.
|Third Party Liability||Comprehensive Cover|
|Damage to third party||Yes||Yes|
|Personal accident cover||No||Yes|
|Loss of vehicle||No||Yes|
Features and Benefits of Two Wheeler Insurance Online :
Purchasing two wheeler insurance comes with a number of benefits and advantages, providing protection and coverage in the event of any untoward circumstances befalling the vehicle or the owner. Given below are some of the features and benefits associated with bike insurance:
- Protects vehicles: the most basic benefit of 2 wheeler insurance is that it protects the vehicle from damage due to accidents, large or small. Even a small dent or paint touch up would result in a significant drain on the owner’s pocket. Insurance would take care of these expenses at a minimal cost.
- Covers third party liability: in the event that the insured vehicle is involved in an accident, the cost incurred due to damage to a third party would be covered by the insurance company.
- Covers third party property damage: owners of insured two wheelers that cause damage to a third party’s property will not have to pay for the damage caused, as the insurance company would be covering these costs.
- Covers vehicular damage: vehicular damage caused due to natural or man-made calamities as outlined in the policy document would be covered by the insurance company, including partial or total loss of the vehicle due to such events.
- Cashless garage facility: in the event of an insured two wheeler suffering a breakdown or machinery issue, insurers offer cashless garage facilities at various locations, making it convenient for the vehicle owner to get assistance. Know more about Cashless Two Wheeler Insurance.
- Provide insurance for riders: in the unfortunate event that the rider is involved in an accident, the insurance company covers the cost of medical and hospitalisation expenses up to a fixed amount.
- Additional coverage: most insurance providers offer customers a choice of add-on covers which offer more comprehensive and specific protection, which can be added to their existing policy.
- Provides peace of mind: two wheeler insurance policies provide cover and protection against unexpected expenses due to unforeseen circumstances, so owners need not worry about high bills to pay off due to situations beyond their control.
- No claim bonus: insurers reward customers who do not make a claim during the policy tenure by offering a discount on insurance renewal. In this way, two wheelers owners stand to receive discounts upon renewing their insurance.
|All types of vehicles||% of discount on own damage premium|
|No claim made or pending during the preceding full year of insurance||20%|
|No claim made or pending during the preceding two consecutive years of insurance||25%|
|No claim made or pending during the preceding three consecutive years of insurance||35%|
|No claim made or pending during the preceding four consecutive years of insurance||45%|
|No claim made or pending during the preceding five consecutive years of insurance||50%|
Two Wheeler Insurance Add-On Covers :
Motor insurance, whether it be liability only or comprehensive insurance, provides two wheeler owners with protection in case of accidents or unforeseen circumstances. These policies cover damage or loss due to theft, natural calamities, fire, burglary etc. and provide personal accident cover as well.
While these policies cover the most likely eventualities, there are occasions when an unexpected expense could crop up that is not covered under the insurance policy. In such cases, the policyholder would have to shell out a hefty sum in spite of having paid for insurance.
To avoid having to pay for such hidden expenses, two wheeler owners can opt for add-on covers.
As the name suggests, add-on covers are additional covers that can be purchased and added to an existing two wheeler insurance plan based on the policyholder’s requirement.
Add-on covers provide protection such as enhanced coverage for pillion rider, nil depreciation with regard to parts and spares and coverage for electrical/non-electrical accessories.
A list of some of the most popular add-on covers available are given below:
Zero Depreciation Cover:
|Age of the Vehicle||Rate of Depreciation Applicable|
|Less than 6 months||No Depreciation|
|Above 6 months but less than 1 year||5%|
|Above 1 year but less than 2 years||10%|
|Above 2 years but less than 3 years||15%|
|Above 3 years but less than 4 years||25%|
|Above 4 years but less than 5 years||35%|
|Above 5 years but less than 10 year||40%|
|More than 10 years||50%|
As two wheelers age, their value decreases. Consequently, when filing an insurance claim, the insurance company will levy a depreciation charge before settling the claim. This covers everything from spare parts to repair work. This would result in the customer having to spend a significant sum on repairs for an older two wheeler, as the claim amount received would steadily decline with each passing year. To offset the reduced claim, customers can opt for a zero depreciation cover or nil depreciation cover, whereby the depreciation cost is negated, resulting in the full claim amount being provided.
Zero depreciation cover extends from 0-40% depending on the age of the two wheeler and other factors.
Personal Accident Cover for Pillion: this cover provides personal accident coverage for pillion riders in case of an accident or any circumstance as outlined in the policy document. This cover provides for insurance in the event of the pillion rider’s partial or permanent disability or death while riding the insured vehicle. The amount that can be claimed would depend on the type of injury suffered by the pillion rider at the time.
Round The Clock Assistance: this cover would entitle the insured to round the clock two wheeler support in the event of a breakdown or a mechanical failure. Among the services offered are towing facility in the event of a breakdown, accommodation benefit due to the vehicle being unfit to ride, emergency assistance, minor repairs at the site of the accident/breakdown etc.
Accessories Cover: this would provide coverage to any electrical or non-electrical accessories added to the two wheeler, resulting in the insurance company covering the cost of replacing/repairing them.
Two Wheeler Insurance Policy Rates :
Third Party Insurance Rates for Two Wheelers Effective From April 1, 2016
Each fiscal year, there is an increase in the insurance premium rates. As we can see from the table given below, the insurance premium rates have increased by up to 25% for different categories of Two Wheelers. Going by the annual trend, these rates are again expected to go up by a certain percentage as the new fiscal year begins. Considering that, there is no better time than now, to purchase a two-wheeler insurance policy for your vehicle and keep yourself protected from a wide range of perils and risks.
|Vehicle Engine Capacity||Old Premium Rate||Revised Premium Rate w.e.f April 1, 2016||Percent Increase|
|Up to 75 CC||519||569||10.00%|
|76CC to 150 CC||538||619||15.00%|
|151 CC to 350 CC||554||693||25.00%|
|Above 350 CC||884||796||-10.00%|
With insurance being mandatory for all two wheelers, shopping for the perfect policy that meets all their needs and also doesn’t break the bank premium-wise is at the top of a bike/scooter owner’s mind.
After looking at insurance policies and reading the fine print to narrow down on the one that suits a customer’s needs, he/she will have to also consider how to pay for the policy.
Insurance companies have come to the rescue through two wheeler insurance premium calculators, which allow customers to ascertain the amount they would have to pay towards the insurance premium.
Insurance premiums have been on the upswing and get more expensive with each passing year, making this a very handy and helpful tool.
Premium calculators also allow the customer to get multiple quotes, enabling him to make an informed choice taking into account the cost of the policy as well as its features.
Two wheeler Insurance premium calculator operates on a simple premise, where certain information is to be inputted, based on which the calculator will display the premium cost.
A number of insurance companies have online premium calculators, making it easy for customers to access this information wherever they are.
A premium calculator will require the following information:
- Make and variant of the two wheeler.
- Existing policy information (if already insured).
- Vehicle registration number.
- Type of policy (liability only/comprehensive).
Based on the above, the calculator will generate a quote as per the information provided.
It is to be noted that in case of riders being added to the policy, the premium amount will increase commensurate to the rider premium to be paid.
When looking for a bike insurance plan, the premium amount is something that most customers base their purchase on. Insurance companies issue premium quotes for liability only as well as comprehensive insurance policies. Certain factors play a key role in the calculation of the final quote and insurance premium to be paid. Given below are the 5 major factors affecting two wheeler insurance that insurance companies take into account when calculating a premium quote:
- Vehicle type: the two wheeler vehicle type is measured by its cubic capacity (cc). Two wheelers are classified into 3 categories with regard to the cubic capacity of a vehicle- 0-150 cc, 150-350 cc and above 350 cc. The higher the two wheeler’s cc, the higher the premium to be paid.
- Geographical area: premium rates are governed by geographical area, with certain areas like metro cities attracting a higher premium. Living or working in an area prone to theft and vandalism would also result in a higher premium.
- Type of coverage: the coverage being opted for also determines the premium amount, with liability only (or third party insurance) being relatively cheaper than comprehensive insurance.
- Applicant demographics: some insurance companies look at the applicant’s age, gender and marital status when calculating premium, on the understanding that a middle-aged applicant is less likely to be a speed demon and would possess better riding skills, thereby resulting in lower risk for the insurer.
- Past insurance record and history: applicable in case of a policy renewal, the past insurance record and riding history such as accidents, number of insurance claims etc. are considered at the time of premium calculation.
Owning a two wheeler in India requires one to buy insurance for the vehicle. Most two wheeler insurance policies are for a 1 year period, meaning owners have to renew premiums each year. With the rising cost of premiums, this results in a significant dent in finances.
Shopping for a good two wheeler insurance policy that offers the requisite amount of coverage and is affordable is not always easy, but there are ways to get the cover required without having to pay a hefty sum for it.
Given below are some ways to reduce bike insurance premium without sacrificing on the insurance coverage:
Ensure a clean riding record: the safer the rider, the lower the premium. Insurers prefer riders who are less likely to make a claim or be involved in an accident. No insurer wants to keep paying for damages due to collisions or accidents and companies reward customers who have maintained a clean riding record with lower premiums.
Riding association: members of riding associations enjoy additional discounts on insurance premiums by virtue of their memberships, with some insurers waiving off up to 5% of the premium amount.
Enhance vehicle’s security: protecting the insured vehicle against theft and burglary results in a lowering of the premium amount payable as there is a lesser likelihood of the vehicle being stolen or vandalised. Invest in ARAI-approved security features to be eligible for lower insurance premiums.
Avoid small claims: scratched the paintwork or dented the metalwork? Avoid filing a claim for such repairs as insurers pay big rewards to customers who do not file a claim during the policy tenure. Minor repair work can be funded by the owner, thus increasing the chances of receiving a discount on the next year’s premium through No Claim Bonus.
One-time payment: paying the premium amount in full at the time of buying the policy could result in savings. Some insurers charge a lower amount if customers pay the entire premium amount at one go instead of opting to pay in instalments.
Bundle policies: insurers are more likely to provide a discount if customers buy more than one policy from them. If possible, explore other insurance options from the same insurer such as auto insurance, home insurance etc. to avail a discount on the premium amount.
Having bought a two wheeler insurance policy, two wheeler owners have to ensure they renew the policies regularly to avoid penalties or fines. Most two wheeler insurance policies are renewable annually, meaning vehicle owners have to keep track of policies and renew them before they lapse. You can also renew lapsed two wheeler insurance policy.
Nowadays, multi-year two wheeler insurance policies are also gaining in popularity, with policy tenures of up to 3 years. You can opt for long term two wheeler insurance policy.
In both cases, though, the policy has to be renewed or a fresh policy has to be purchased from another insurer.
The hassle of long queues or spending half the day at the insurance company’s office with a large sheaf of documents is a thing of the past now.
With online transactions becoming the norm nowadays, insurance companies too have streamlined their processes, allowing customers to buy and renew insurance products online.
Most insurance companies offer online renewal of two wheeler insurance policies, with many also setting reminders so customers do not miss renewal deadlines, which could cause them inconvenience.
Two wheeler insurance renewal online can be done in a few minutes, and is a quick and efficient way to stay insured. Customers have to merely log in to their insurance company’s website and initiate the renewal process.
Customers can opt to change their coverage type as well, depending on their coverage requirements.
Information such as the existing policy number, policy type, vehicle registration number and owner details would have to be provided for verification and authentication purposes.
Once the policy has been selected, the premium can be paid through net banking, debit/credit card.
Once the payment has been realised, an acknowledgement will be sent to the customer within a matter of minutes.
The new policy can also be saved/downloaded or printed, providing the owner a ready reference to the terms, if required.
An additional hard copy will also be mailed to the policyholder by the insurance company.
|Policy Coverage||Two Wheeler Insurance|
|Personal Accident Cover||Yes|
|Third party liability||Yes|
|Damage/loss due to natural calamities||Yes|
|Damage/loss due to man-made reasons||Yes|
|Damage/loss due to driver being intoxicated||No|
|Damage to tyres and tubes||No|
|Regular wear and tear||No|
|Depreciation or consequential loss||No|
|Damage/injury caused by rider without a valid license||No|
|Damage/loss due to war, mutiny, nuclear energy causes||No|
A good insurance policy is an effective shield against the uncertainties of life. A good 2 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 bike 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.
When looking for insurance cover for two wheelers, customers can choose between liability only and comprehensive cover. So what is the difference between the two types of cover, and which of the two is better suited to provide protection? The type of insurance would depend on the individual buyer and his needs.
- Liability Only Policy: a liability only policy would provide basic protection that is mandated by law. This protection extends only to the third party and will cover the cost of any damage, partial or permanent that could arise due to an accident on incident involving the insured two wheeler.
Liability only policies also offer personal accident cover for the owner up to a fixed amount in the event of an accident leading to a partial or total disability or resulting in the owner’s death.
However, in the case of any damage to the insured vehicle, the insurance company is not liable to pay for any repairs or cover any costs associated with the vehicle.
- Comprehensive Policy: on the other hand, a comprehensive policy provides protection in the event of any damage done to the vehicle as a result of an accident, natural or man-made calamity as defined in the policy document.
A comprehensive insurance policy also provides insurance coverage to the owner and co-rider in case of partial or total disability or death.
Comprehensive insurance policies cover minor as well as major damage to the vehicle due to unforeseen circumstances as well as total loss of the two wheeler due to the circumstances covered in the policy document.
Thus, a liability only policy provides financial protection in case of injury or damage to a third party or the third party’s property while a comprehensive insurance policy covers everything from repairs to personal accident coverage for the owner.
Compare and Choose Best Two Wheeler Insurance Policy
With no dearth of two wheeler insurance policies from which to choose from, a vehicle owner could end up swimming in policy terms and benefits for days on end while trying to research the perfect policy. Given below is a representative list of some of the more popular and benefit-rich best two wheeler insurance policies currently available.
Bajaj Allianz: Bajaj Allianz offer customers comprehensive coverage at an affordable cost. Customers can opt for an annual policy or a 3 year policy. Customers can enjoy instant claims assistance and a transfer of up to 50% of the No Claim Bonus from any other insurer as well as a hassle-free and smooth claims service.
Tata AIG: one of the largest insurers in India, Tata AIG offers customers free vehicle pick up in the event of an accident and provides a 6 month guarantee for accident repairs done at their network garages. Additionally, they assure 7 day claim settlement as well as provide complete protection in case of natural or man-made calamities.
ICICI Lombard: with over 2,900 partner garages across India, ICICI Lombard assures customers of service no matter where they are. The company provides premium discounts to Automobile Association members and policy tenures up to 3 years. With a number of add-on covers at a nominal additional charge, ensure rider and vehicle safety.
New India Assurance: with a high claim settlement ratio and a large partner garage network, New India Assurance guarantees quick claim settlement and an array of add-on covers to keep both vehicle and rider safe and secure.
Buying two wheeler insurance used to consist of visiting various insurance companies and submitting scores of documents to get quotes and finally comparing the quotes and repeating the process to purchase a policy. However this is a thing of the past thanks to online insurance.
Insurance companies now offer two wheeler insurance policies online at the tap of a few buttons with the entire process being facilitated online. Thus, customers can look up policy types, scan through each policy’s features and benefits, submit their documents as well as pay for the policy all from the comfort of their home. Buying a fresh policy can be done by entering the relevant information such as the vehicle registration number, owner’s details and any other information required by the insurer. The premium payable will be reflected on screen and the customer will be provided an option to choose the policy type and any add-on covers, if desired.
On selection, the required documentation can be uploaded or will be collected from the customer’s place of residence/work and processed and the policy can be purchased hassle-free.
Buying a bike insurance policy online has a number of advantages attached to it, as given below:
- Convenience: customers can look for policies whenever and wherever they are at their convenience.
- Accessibility: with insurance companies putting up all policy related documentation online, customers can go through the policy minutiae at their leisure and make an informed choice.
- Ease of use: online policies are simple to buy, with insurers outlining the buying process in simple and easy-to-follow steps.
- Ease of purchase: customers can pay for their policy or policy renewal online through net banking, credit or debit card, making it an instant payment.
- Secure: the online insurance purchase process is safe and secure, with companies providing a secure payment gateway and encryption to ensure the complete security of any online transaction made.
- Assistance: insurance companies offer online assistance through customer service and live chat to customers who might have any queries regarding the insurance purchase or policy.
In the event that the policyholder meets with an accident or wishes to file a claim, there is a set process which is to be followed.
A claim is an intimation sent to the insurer notifying them of an accident, injury or activity that involves the insured vehicle for which the insurer is to extend financial support to cover.
Insurance companies have outlined the claim process in simple, easy-to-follow steps to ensure policyholders can file their claims in a convenient and hassle-free manner. Insurance companies have also speeded up the claims process so customers are not left languishing waiting for a decision on their claim.
Claims can be filed for accidents, breakdown/mechanical failure or damage to the vehicle provided it is covered under the policy.
The claims process consists of the following:
- Reporting of the claim to the insurance company.
- Filing of the claim form and documentation related to the claim.
- Verification and processing of the claim form.
- Approval and release of payment.
When filing a claim, the customer is required to follow the steps mentioned below:
- In case of theft, an FIR is to be filed detailing the extent of the theft (parts, cost etc.)
- In the event of an accident involving the insured vehicle, the owner is required to call the 24X7 customer support number provided by the insurer.
- The accident is to be reported and any injured parties or property damage is to be noted as details of the same have to be shared with the insurer.
- The customer service executive will note down relevant information and provide a tracking number, which is to be used when filing the claim. In case of damage to the vehicle, information on network garages/hospitals will be provided.
- In the event of property damage/injury to a third party due to the insured vehicle, an FIR is to be filed at the nearest police station.
- The insurer will then contact the owner of the vehicle and notify him/her of the procedure.
- A verification call will be made and any additional information regarding the incident is to be relayed.
- A claim form (available online/at the insurer’s branches) is to be filled in mentioning details of the incident with documentation attached.
- Documents in the form of the vehicle’s registration certificate, the rider’s driving licence, an FIR copy (if applicable) are to be submitted along with the claim form.
- If a third party has registered a complaint, documents pertaining to the complaint such as a legal notice are to be submitted as well.
- An expert from the insurance company will perform an assessment and the claim will be approved based on this assessment.
- Following verification, the insurance company will process the claim and release payment for the repairs directly to the garage and any other expenses arising out the accident to the relevant parties.
- How can I check the status of my two wheeler insurance policy?
The status of a two wheeler insurance policy can be checked through the website of the insurance company or by contacting a branch and providing details such as the policy number, policyholder’s name etc.
- What is the fine for riding without valid two wheeler insurance?
Using an uninsured two wheeler or one whose insurance has lapsed will result in a fine of Rs.1,000.
- What is the validity of a two wheeler insurance policy?
A two wheeler insurance policy is valid for 1 year, 2 years or 3 years depending on the tenure of the selected policy.
- How to renew expired two wheeler insurance?
Expired two wheeler insurance can be renewed by choosing a two wheeler insurance policy, having the vehicle inspected, filling the form and paying the requisite premium.
- 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.
- If I have to take a two wheeler insurance policy, what documents will i be required to submit?
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.
- What do you mean by a No Claim Bonus (NCB)?
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.
- Can I get a copy of my TWI policy online? If yes, will that soft copy of the policy serve as a valid / original insurance document?
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.
- What are the various scenarios / circumstances under which I can make a Personal Accident Claim?
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.
- What are some of the primary factors which will affect or help reduce my Two Wheeler Insurance premium?
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.
- What do you mean by Cashless and Non-cashless / Reimbursement claim?
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.
- I have purchased accessories for my vehicle while my policy is underway. Can I get these accessories insured between the ongoing policy term?
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.
- What is meant by Total Constructive Loss in Two Wheeler Insurance?
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.
- Can I make a claim, for an event that has taken place during the term of the policy, after the policy has expired? Will the claim be valid?
Yes, you will be eligible to make a claim even if your policy has expired, if the damage took place during the policy tenure.
- What do you mean by Nil Depreciation?
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.
- Following an accident, my vehicle has not sustained any serious damage. What would I gain if I do not file for a claim in this case where the damages are not serious?
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.
- How will my Two Wheeler policy be affected if I change my job or change my location?
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.
- In 2 wheeler insurance terms, what is meant by electrical and nonelectrical accessories in ? How is their value calculated?
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.
Bajaj Considering Re-launching the Iconic Chetak Scooter
According to reports, Bajaj is planning to re-launch the iconic Chetak scooter, to compete against rivals like the SR 150 and Vespa. With a launch expected sometime in 2017, the new Chetak scooter is rumored to have a four-stroke, single cylinder, air-cooled engine with an engine capacity ranging between 125cc-150cc.
6th December 2016
Bajaj Allianz and Canara Bank target business worth Rs.400 crore in the first year
Canara Bank and Bajaj Allianz General Insurance have signed an agreement for the distribution of the insurer’s products at various branches of the bank. They have set a target of Rs.400 crore in sales of insurance products during the financial year 2017-18.
Canara Bank has a wide network of 5,920 branches throughout India, where the insurance products would be made available to customers. The insurer plans to offer an extensive range of products such as health, home, motor, travel, marine, fire, and engineering insurance at these banks. The partnership will also focus on utilising technology to provide enhanced experience to customers.
5th December 2016
Hero Splendor back to top position in two-wheeler sales
Hero MotoCorp has taken over the top position in two-wheeler sales from Honda Motorcycle and Scooter India (HMSI), as Hero Splendor sold around 4,000 units above Honda Activa in October. The favourable monsoons, festive season, and a revival in the rural segment has contributed to the massive sales.
HMSI has three models under the Activa brand, i.e., Active 3G, Activa-i, and Activa 125. In October, the total sales figures of Activa came up to 2.5 lakh units. There are seven products under the Splendor range, including the Splendor Pro, Splendor +, and Splendor iSmart. The latest additions to the Splendor range are the 125cc Super Splendor and Splendor iSmart 110. The total sales for this range of motorcycles in the month of October was 2.54 lakh units.
Hero HF Deluxe claimed the third position in sales, as it sold 1.33 lakh units. Demonetisation has had an impact on the sales in November, but manufacturers are optimistic that the figures would climb back up soon.
Honda and Hero MotoCorp historically had a long partnership for 26 years, which ended in 2010.
1st December 2016
Insuring electronics now just a swipe away
We have already seen apps relating to food ordering, ticket booking, and banking among others make it way to our smartphones.
New updates in the world of technology currently suggests that a swipe-to-buy insurance for electronics is also on its way soon.
As seen on reports, Munich RE, an European insurance company, which also has a presence in India has rolled out this novel way of insuring electronics like camera, computer, tablets, etc.
Apart from Munich, there are also other companies like Trov and Suncorp Ltd among others, around the world that have begun offering the same service for different products.
If all this go well, we could also see a similar insurance in India within the next year or two. Speaking on the issue, a spokesperson said that companies like Airbnb and Uber have built a solid platform wherein a customer’s reliability can be checked.
The spokesperson also said that such rating systems will help insurers overcome the trust issues and help make buying insurance a lot more effortless.
29th November 2016
Top 10 Two Wheelers in October 2016
The sales of Hero MotoCorp’s flagship motorcycle brand, the Splendor, lead the pack for most units sold in the month of October 2016, according to data released recently. The Splendor sold 254,813 units in October.
The Honda Motorcycle brand, the Activa, was a close second, selling 250,681 units, with sales growing by over 5%.
The HF Deluxe, another bike from the Hero MotoCorp stable comes in at third place, selling 133,986 units.
TVS Motors’ XL Super came in fourth place, selling 87,746 units in October, which was a huge improvement on its performance during the same period in 2015, recording a whopping 33% growth.
The spurt in two wheeler sales would give a boost to the two wheeler insurance segment, which has been seeing some difficult times off late.
28th November 2016
Bharti Axa General observes sale of 2,500 units of new long-term two wheeler insurance
Bharti Axa General has announced that 2,500 units of their recently introduced long-term two wheeler insurance policy has already been sold. The company is now focussing on a growth in long-term two wheeler insurance premium of 50%, over the next year.
The long-term policy offers comprehensive coverage with a host of added benefits. Policyholders do not need to go through the hassles of policy renewal on an annual basis, as the coverage can be purchased for policy tenures of 2 or 3 years. The policy also preserves the NCB after a specific number of claims. Effectively, in the event of a claim, the NCB will not be nullified; instead it will be reduced to a lower slab.
An online poll conducted by the insurer revealed that the main reason for two wheeler insurances not being renewed across the country was that the policy expiry date would be missed by the policyholder. Another reason found was the hassle of annual renewals. Most of the respondents in the survey concurred that they would prefer to purchase long-term insurances.
25th November 2016
More than 2000 Registrations in Hero Electric’s First Launch
Hero Electric, the market leader and pioneers so far as the Indian electric two-wheeler sector is concerned, recently disclosed its impressive sales report which reported a 100% growth in comparison with last year. The festive season contributed significantly as demand for the company’s vehicles was high in Rajasthan, Karnataka, Uttarakhand, Tamil Nadu, Uttar Pradesh and West Bengal. The increase in sales is also credited to the company’s aggressive sales and marketing strategy across all sessions. The wide range of offerings made available by Hero Electric was well received by the public as the company offered attractive discounts on select models whilst also offering such incentives as purchasing batteries on EMI in addition to a number of other special deals.
24th November 2016
Honda introduces two new bikes in India
Honda has officially launched two new motorcycles for the Indian market for the year 2017. These bikes called the Rebel 300 and Rebel 500 were launched in the US.
The Honda Rebel, which was an on and off operational model since 1985 has found its way back to the market in brand new avatars.
While the Rebel 300 features the same engine the CBR 300, i.e., a 286 cc engine, Rebel 500 comes with the 471 cc CBR 500 engine and churns out 45 bhp of power. Both these engines are DOHC, four valve and fuel-injected variants which are tuned to give a more cruiser-like exhaust note.
The two bikes feature an all-new trellis frame, 41 mm fork, optional ABS, and twin shocks. However, there’s no real news on whether the Japanese automaker wants to bring the bike to India or not.
23rd November 2016
Insurance companies run to central government for help
The motor insurance industry, which has been running on losses for quite a while, has now asked the central government to help them with the issue.
According to reports, it is being said that non-life insurers are seeking a time-limit of one year on third party insurance claim filing.
The motor insurance industry is hoping that getting a one-year time limit for third party insurance claims would help them steady their rather sinking business.
Bhargav Gupta, CEO and MD, ICICI Lombard General Insurance spoke on of the industry wherein he rued the lack of time limit of third-party claims and said that courts usually take at least 3-5 to intimate companies of any claims.
Mr. Gupta has continued that the industry is looking to amend the new Motor Vehicles Act to set a time limit so as to bring down insurers’ liability.
22nd November 2016
Piaggio Launches Two New Scooters in India
Piaggio has recently launched two scooters in India namely Vespa 946 Emporio Armani Edition and the 70th Anniversary Edition. Vespa 946 Emporio costs around Rs.12.04 lakh and the 70th Anniversary Edition costs around Rs.96,500. Vespa 946 Emporio has a 4 stroke engine with a capacity of 125 cc. It generates maximum net power of 11.7 bhp at 8250 rpm and torque of 10.3 Nm at 7000 rpm. It is also equipped with lot of additional features such as anti slip regulator, traction control system etc. The design of the 70th Anniversary Edition is inspired by the VXL model. It has been launched to mark the 70th anniversary of Vespa as a brand.
21st November 2016