A bike insurance plan offers protection against liabilities that arise from injuries to the rider and the pillion as well as third parties, depending on the kind of policy you purchase. In order to purchase the cheapest two-wheeler insurance policy with adequate coverage, it is essential to compare plans between insurers. This facility is available online and can be done right here on the BankBazaar website!
|Two Wheeler Insurance Rate||Best Insurance Plan||Types of Bike Insurance||Bike Insurance Benefits||Insurance Add-on Covers||FAQ's|
Insurance companies offer several incentives to prospective customers in the form oflong-term bike insurance policies, No Claim Bonus (NCB) benefits, etc. Mentioned below is a representative list of some of the best two-wheeler insurance policies currently available for the period 2017-18.
|Two wheeler Insurance provider||Incurred Claim Ratio||Personal Accident Coverage||Policy Term||No Claim Bonus|
|Bajaj Allianz Two Wheeler Insurance||62.20%||Coverage up to Rs.1 lakh for the owner-driver||1-5 years||No Claim Bonus (NCB) benefits|
|Bharti AXA Two Wheeler Insurance||81.74%||Available as an add-on cover for owner-driver and the co-passenger||1-5 years||NCB of up to 50% and Up to 2.5% discount for installation of security devices|
|HDFC ERGO Two Wheeler Insurance||84.37%||Available for the owner-driver under comprehensive motor insurance||1-5 years||Premium discount for long-term two-wheeler insurance plan|
|Reliance Two Wheeler Insurance||81.47%||Available as add-on coverage||1-5 years||NCB benefits|
|Liberty Two Wheeler Insurance||69.62%||Available for the owner-driver||1-5 years||Discounts at renewal and NCB benefits|
|IFFCO Tokio Two Wheeler Insurance||79.19%||Available||1-5 years||NCB benefits (as high as 50%)|
|ICICI LOMBARD Two Wheeler Insurance||77.44%||Available||1-5 years||NCB benefits (as high as 50%)|
|Universal Sompo Two Wheeler Insurance||80.66%||Provides compulsory personal accident coverage for owner driver||1-5 years||No Claim Bonus (NCB) is offered for claim-free experience|
|United India Two Wheeler Insurance||91.72%||Available for the owner-driver. It can be extended to passengers||1-5 years||NCB ranges between 20% and 50% based on the number of claim-free years|
|TATA AIG Two Wheeler Insurance||68.62%||Available for the owner-driver||1-5 years||For claim-free years, 20% to 50% NCB is offered|
|Oriental Two Wheeler Insurance||68.19%||Available for the owner-driver||1-5 years||For claim-free years, NCB is offered on the premium of the new policy|
|New India Assurance Two Wheeler Insurance||86.95%||Available for up to Rs.1 lakh for the owner-driver||1-5 years||No Claim Discount is offered at the time of policy renewal and this ranges from 20% to 50%|
|National Insurance Two Wheeler Insurance||79.68%||Available for owner-driver. It can be extended to passengers||1-5 years||No Claim Bonus is offered for claim-free years|
|Magma HDI Two Wheeler Insurance||81.71%||Cover of up to Rs.1 lakh is available. It can be extended to passengers||1-5 years||No Claim Bonus is offered for claim-free years (as high as 50%)|
Having a motor insurance policy while driving in India is mandatory. Owning a two-wheeler insurance policy is extremely easy and hassle-free. You can compare the benefits of multiple insurance policies online and the insurance providers before determining where to buy from. In the category of two-wheeler insurance, you can either opt for a liability-only insurance cover or a comprehensive insurance cover. Where a liability-only cover will provide you coverage for third-party damages, a comprehensive policy will cover you as well as the third-party damages. Apart from providing coverage, a two-wheeler insurance policy also offers benefits like No Claim Bonus wherein you receive a certain sum of money as additional bonus if you have not made any claims in the previous year. Whether it is a natural disaster that has damaged your two-wheeler or a theft, you can always rely on a two-wheeler insurance cover.
Riding your bike without a valid two-wheeler insurance plan is considered illegal. Two-wheeler insurance policies are designed to offer financial coverage against unfortunate events and accidents that could damage the insured two-wheeler, or bodily injuries to the rider, the pillion, or pedestrians, or damages to the property of a third party. With a proper bike insurance policy in place:
There are two kinds of 2 wheeler insurance policies, viz. comprehensive plans and liability-only plans.
A comprehensive two-wheeler insurance policy, although not mandatory, is highly recommended for all bikes. This insurance plan offers extensive coverage to the bike and its owner. It also protects policyholder from legal liabilities to third parties in an accident.
A third party liability insurance plan provides coverage against losses or damages caused by the insured two wheeler to a third party or his/her property. Two wheeler Owner may also receive coverage in the form of a personal accident cover, but no coverage will be provided for the theft or any damages.
It is mandatory as per law to have an insurance policy that covers third party liabilities at least. This is according to the Motor Vehicles Act, 1988. Third party insurance offers this coverage. This third party insurance is most common in motor insurance policies. Any third party involved in the accident will be provided coverage under this policy. IRDAI will be evaluating the damages before deciding if the claim is valid or not. The following are the coverage of a third party two wheeler insurance plan
*Personal Accident Cover is provided in the third-party liability insurance plans offered by some insurers. Refer to the policy document to know more details.
|Loss or damage incurred due to natural and man-made calamities||❌|
|Any damage or loss due to theft||❌|
|Personal Accident Cover||❌|
|Any loss or damage to property owned by a third party||✅|
|Any loss or injury to a third-party involved in the accident||✅|
Apart from the legal aspects, third party insurance can be very useful in case a third party or a third party property is involved in the incident. The victim in the accident can register a case to claim compensation. This is where third party insurance comes into play. This will cover all liabilities that will arise due to death or damage to third party or third party property.
A third party insurance will cover any damages or injuries incurred by a third party or third party vehicle at the time of an accident. Any damage to property belonging to a third party will also be covered under this policy. This policy will not cover any damages incurred by the vehicle of the policyholder. You will have to purchase a comprehensive motor insurance policy if you wish to get this coverage. Comprehensive insurance policies offer so much more coverage apart from the mandatory third party coverage.
A comprehensive insurance policy covers damage, loss, or theft of your two-wheeler. Comprehensive insurance policies cover any damages incurred by the owner of the two-wheeler. Opting for a comprehensive insurance policy is not mandatory like the liability only cover. Here are the features of a comprehensive two-wheeler insurance plan.
|Loss or damage incurred due to natural and man-made calamities||✅|
|Any damage or loss due to theft||✅|
|Personal Accident Cover||✅|
|Any loss or damage to property owned by a third party||✅|
|Any loss or injury to a third-party involved in the accident||✅|
Comprehensive insurance policies will not cover any damages caused due to electrical or mechanical breakdown or the normal wear and tear of the vehicle. Coverage will not be provided if the vehicle is driven without a valid driving license at the time of the incident. Damages incurred while driving under the influence of alcohol or any other intoxicant shall not be covered under a comprehensive two-wheeler insurance policy.
Unlike the liability only insurance, there are several add-ons you can opt for to improve the coverage. Roadside assistance return to invoice, pillion rider, and zero depreciation are some of the popular add-on covers available. Even though a comprehensive insurance policy is more expensive when compared to a liability-only policy, the amount of coverage offered under this plan will help you save a lot of money in case you meet with an untoward incident. Comprehensive insurance policies are the best option to choose as the policy offers extensive coverage when compared to liability only policies.
A comprehensive two wheeler insurance policy is the best type of plan available for bikers. It provides comprehensive protection against damages to your vehicle as well as damages to the vehicle or property of a third party. It also protects the policyholder against the theft or loss of his/her two wheeler. However, the premium for a comprehensive policy is much higher than that of a liability-only policy. It is advisable for all inexperienced riders to opt for a comprehensive insurance policy for their bikes.
The following are the key features of a two-wheeler insurance policy:
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. The following are the factors you should consider when purchasing two-wheeler insurance:
Customers who wished to purchase or renew their bike insurance plan, until recent years, would be given a cover note instead of the policy itself. They would receive the original policy document only after a few days as insurers would mail it to their address at a later date. Thanks to advancements in technology and quicker banking facilities, nowadays, you can get a digitally signed policy from the insurance company as soon as you make the payment.
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 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.
Insurance companies that are approved by the Insurance Regulatory and Development Authority of India offer discounts for a few factors like membership of reputable automotive associations, lower premiums for vehicles fitted with approved systems such as anti-theft devices, etc. Even those who have two wheelers and have an unblemished record are eligible for discounts in No Claim Bonus.
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.
The following are the main benefits of comparing two wheeler insurance policies:
One of the biggest benefits of comparing two-wheeler insurance policies is that it can help you save a lot of money by helping you purchase the most reasonably-priced policy.
When you compare two-wheeler insurance policies, you expose yourself to various options. Reading the features and benefits of the various options at your disposal can help you find the best policy.
When you compare insurance policies, look for add-on covers as they will enhance the level of coverage offered to you.
Comparing the Insured Declared Value (IDV) offered by an insurance company will help you make an informed decision when purchasing a two-wheeler insurance plan.
Selecting the right two-wheeler insurance policy can be a tedious task as it involves a lot of research and comparison. There are various insurance companies around the country and picking one that caters to your unique insurance needs can be a tough thing to do. Mentioned below are the elements that you must consider while comparing multiple two-wheeler insurance policies:
Two-wheeler insurance policies come in very handy, especially in times of emergencies. Not only does it offer protection against injuries to people and property but also offers accident cover in addition to insurance against wear and tear. A two-wheeler insurance policy can be purchased from an office of the insurance company, through an agent, or online. Portals such as BankBazaar are great options to compare two-wheeler insurance policies online. Here are a few things that must be checked when comparing two-wheeler insurance plans:
The covers for bike insurance are usually of two kinds - comprehensive cover and liability only covers. While a large number of people go for liability only policies due to the fact that they are mandatory under the Indian Motor Vehicles Act, a comprehensive two-wheeler insurance policy is a better option because it offers cover against wear and tear to your own vehicle, irrespective of whether the damages were caused by natural calamities or due to man-made reasons. When comparing policies, it is crucial to first understand what kind of cover you need.
Insurance companies across the country offer add-on features or optional covers that increase the level of coverage provided by the base policy. These covers could be additional features that take care of wear and tear of the two-wheeler, offer accident cover for co-passengers, etc. Some covers like zero depreciation come in handy as they ensure that you do not incur extra costs on depreciation of parts of the vehicle.
Several insurance companies across India are very customer savvy in the sense that they have designed a number of features and benefits that aid customers in the claims process. For example, all insurers have a 24/7 call centre that makes it easy for customers to get assistance at any time. The call centre facility can help you get the best advice on renewals, claims, NCB transfer, etc.
Considering most insurance companies are customer-oriented, their claims process is relatively simple, and you can file claims with no hassles. The entire claims process includes a few steps like intimating the insurer about the claim, filing a FIR with the nearest police station, transporting the two-wheeler to the garage, furnishing the necessary documents along with the claim form, etc. In many cases, the insurer tends to cover all the costs incurred as a result of an accident, with the owner of the vehicle having to bear certain expenses that are not covered by the insurance policy, such as the taxes and service charges. Considering the complexity of the claims process, you can take help from the insurance company.
Insurance companies have made it relatively easy for customers to renew their motorcycle insurance policies online. In case your policy has expired and you do not wish to renew it as you want to purchase another policy, you can do so easily on the website of the company from which you purchased the plan.
When you compare two-wheeler insurance policies, it is advised that you go for companies that provide concessions and discounts for certain factors like membership of reputed automotive associations, no claim bonus (NCB), inclusion of anti-theft systems, etc. Some companies also offer extra discounts on online renewal, purchase of a policy using a credit card or certain apps, etc.
It is very simple to get a quote for two-wheeler insurance policies. Here is how you can check your bike insurance premium rates online:
Most insurance companies have their own two wheeler insurance premium calculators that make it very simple for you to calculate the premium applicable to your bike. All you need to check your premium online is to ensure that your vehicle is registered with the Regional Transport Office, and your premium will be calculated by the system and generated in little to no time.
Considering the number of two wheeler insurance companies in the country, and the quality of products and services offered by each of them, purchasing the right kind of two wheeler insurance plan can be quite difficult. It is for this reason that portals such as BankBazaar are designed, so that you find it easy to make the right choice. Comparing two wheeler insurance plans on online portals is quite simple. You just have to enter the details regarding the two wheeler, like the make, model, the year in which it was purchased, the location of the RTO, etc. After entering these details, you will have to ask for quotes and the insurance policies made available by the top insurance companies will show up on the screen.
When you purchase a two wheeler insurance policy, you get covered against unforeseen circumstances that could make you incur major expenses. While comprehensive 2 wheeler insurance policies offer basic insurance coverage, going for optional riders or add-on covers will significantly increase the level of protection afforded to you. Most insurance companies offer add-on covers with their bike insurance policies. Each add-on cover has its own benefits, thereby allowing you the luxury of choice to pick only the ones that will suit your unique insurance needs. The following are the optional riders to choose from:
Personal Accident Cover for Pillions: When you supplement your bike insurance policy with a personal accident cover for 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.
Roadside assistance: By purchasing the roadside assistance add-on cover, you can avail roadside assistance at any time in case of a mechanical failure or the breakdown of your vehicle. This feature offers facility such as free towing, immediate repairs, etc. and it comes in very handy especially when you are travelling to a remote place where it could be difficult to find help.
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 is damaged, the rider will cover the cost to repair or replace it.
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.
Zero depreciation cover: Whether you purchase a liability only insurance policy or a comprehensive two-wheeler insurance policy, the whole claim amount will not be settled by either of them. Depreciation is deducted by the insurance company and only the remaining amount is paid out. Supplementing your bike insurance policy with a zero-depreciation cover, however, will eliminate the depreciation factor and you will be eligible for the whole claim amount.
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.
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.
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 reimbursed the actual value of the vehicle in case it is stolen or suffers total loss due to natural calamities or theft.
Since each of the aforementioned riders has its benefits, you can pick as many options as you want to extend the level of protection available to your two wheeler. These riders are available for a nominal fee and come in very handy in times of emergency.
The policy document will cover all the inclusions and exclusions of your motorcycle insurance plan. Generally speaking, the following are the inclusions and exclusions of a two wheeler insurance policy:
The following are the general exclusions of a two wheeler insurance policy:
|Not exceeding 75cc||Rs.427|
|Exceeding 75 cc but not exceeding 150 cc||Rs.720|
|Exceeding 150 cc but not exceeding 350 cc||Rs.985|
|Exceeding 350 cc||Rs.2,323|
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. In fact, many insurers have also tied up with mobile payment vendors to make it more convenient for customers to renew their policies. Moreover, the technologically advanced companies have their own mobile applications that make it very simple for bike owners to purchase and renew their policies online. The following are the most common methods to renew your bike insurance policy online:
Since all major insurance companies have their own websites, you can simply log in to them and follow the instructions to renew your bike insurance online. All you have to do is ensure that you enter the correct information regarding your policy as well as your personal details into the system. The old policy must be with you when you are renewing it as it will be easier to refer for details like old policy number. Your net banking details and your debit/credit card must also be kept handy so that information can be entered quicker and your renewal process is smooth and hassle-free. Insurers usually generate digital policies in the PDF format once you pay the premium when renewing your plan. The PDF can be saved on your system but make sure that you take a print out and keep the document with you when you ride.
If you wish to take the old-fashioned route, you can visit a branch of the insurance company to renew your two wheeler insurance policy. While the process of renewing your bike insurance plan at a branch of the insurance company is simple, you will have to take the time out to physically visit the branch. You will have to carry your old policy along with details regarding the vehicle so that you can fill them out in the application form. When you renew your insurance policy at a branch office, the new policy will be handed to you immediately if the premium payment is made by debit card, demand draft, or cash. Paying the premium by cheque will mean that it will take some time to clear so your policy will be sent to your residential address by mail at a later date.
Since many insurance companies have launched their own mobile apps or tied up with mobile payment vendors, renewing your bike insurance policy is as easy as it gets. The applications request certain information such as the registration number of the vehicle, the name of the manufacturer, the make and model of the vehicle, etc. The apps also need details of your policy, such as the name of the insurer, the policy number, etc. By filling in these details and paying the premium, your motorcycle insurance policy can be renewed quickly and without any hassle.
Purchasing the right two wheeler insurance can be somewhat tricky considering the number of options at your disposal. There are also a number of mistakes that people make when purchasing two wheeler insurance. If you are looking to buy bike insurance online, here are a few common mistakes you must avoid:
A lot of people across India tend to purchase second-hand bikes because of how economical it is over the purchase of a new two wheeler. However, they tend to forget to transfer the insurance policy when doing so. In this case, the buyer and the bike will be uninsured and a new policy must be purchased. It is important to remember to transfer the insurance policy of the vehicle from the previous owner of the vehicle to your name. Else, purchase a new policy in order to avoid penalties.
In case you go through an entire policy year without meeting with accidents or making claims, your insurer will reward you for your diligence by way of a No Claim Bonus. What this feature essentially does is lowers your premium for the following year. Most of the insurance companies in India have a certain rate by which they lower your premiums. If you don’t make a claim for one year, the NCB offered to you will be 20%. Being claim-free for two years will offer a discount of 25%, while being claim-free for three years will open up a discount of 35% for the following year. Going four years without making claims will give you a discount of 45%, and five claim-free years will offer you a discount of 50%. The No Claim Bonus for going more than five years without making a claim will depend on the insurance company. In case you meet with a minor accident, see if you can cover the costs yourself as it will help you save more by accumulating your claim-free years.
Since No Claim Bonus can be crucial in helping you save money on premiums, it is important to protect it. It is also crucial to remember to choose the right NCB percentage. Remember the rates offered by your insurer and select it when renewing your policy. Choosing a lower rate will reduce the benefits for which you are eligible, while choosing a higher rate will make it look like an attempt at fraud, thereby making it crucial for you to choose the right NCB rate.
Not all people who own bikes remember to renew their two wheeler insurance policy on time. Riding around with a lapsed policy means you have no valid coverage. So far as the law is concerned, you are already committing an offence by riding with an expired two wheeler insurance policy. What’s worse is that if you meet with an accident and get injured, or if there are damages to your vehicle or third parties, you will have to bear all the expenses out of your own pockets. Make sure you renew your bike insurance policy online before it expires in order to avoid penalties and legal and financial liabilities.
The IDV, or Insured Declared Value of your vehicle, is the highest sum assured that will be provided to you as reimbursement by your insurer in case your vehicle is stolen or suffers total loss. Basically, when you purchase a bike insurance policy online, the IDV will be the prevailing market value of the two wheeler. Insurance companies calculate the IDV of a vehicle by taking into consideration a few factors such as the current value of the manufacturer and depreciation based on the age of the two wheeler. It is important to note that the higher the premium, the higher your IDV and vice versa.
In case your two wheeler has met with an accident or stolen, it is essential to report the same to the insurance company at the earliest. Most insurers have a timeframe of 24 hours to 48 hours from the time of the accident to be informed about it. Make sure you call the company as soon as the accident occurs or notice that your bike has been stolen to have a smooth and hassle-free claim process.
At the time of purchasing bike insurance online, it is crucial to furnish all your personal details correctly as omittance of details can be construed as an attempt at insurance fraud. If you provide incorrect information, the company may not entertain your claims and you will have to cover the expenses out of your own pockets.
When you renew your two wheeler insurance policy, make sure that you enter the right name as per your official records such as the previous policy documents and the RC. A small spelling mistake could turn into a major problem as your policy will be considered invalid.
In case of your untimely demise due to an accident, your family members can only avail the benefits of the policy if they are mentioned as nominees when you had purchased the bike insurance. It is important to name a nominee at the time of purchasing insurance as your family members will benefit in case of an untoward incident.
As mentioned earlier, the failure to mention the right personal details could render your two wheeler insurance policy void. Similarly, the hypothecation details you mention at the time of purchasing a policy could land you in trouble at the time of filing claims. In order to avoid such a problem, make sure that the hypothecation details you enter are accurate.
If you are looking to purchase a new two wheeler insurance policy, or migrate from your current insurer to a new one, there are a few things to consider before making your final choice. The following are a few factors you need to check when selecting a two wheeler insurance company:
First and foremost, look for the authenticity of the company on the website of the Insurance Regulatory and Development Authority of India. All insurance companies have an IRDAI registration number which validates the authenticity of the policy as well as the company.
The rejection ratio of an insurance company is basically the ratio of claims rejected by the company to the claims settled. Companies with lower claim settlement ratios are better options as they have fewer issues at the time of settling claims. Checking the rejection ratio of a potential insurer is crucial to ensuring that you have a smooth and hassle-free claims process in the future. A simple Google search will help you find the best insurance company in this regard.
The financial standing of a company is also crucial and must be checked before you pick an insurer. The financial standing of an insurance company will help you determine the capability of the company when it comes to settling claims. You could run an internet search to find the financial standing of a company before choosing it as your insurer.
Despite the fact that two wheeler insurance is a standard product, different companies charge different premiums. It is essential to compare the premium associated with an insurance policy against the cover it offers. Make sure you don’t choose the plan with the lowest premium because it may not offer adequate coverage. Even if the premiums are high, they are worth it because the policy will come in handy in times of accidents.
Considering the fact that pricing is competitive across the two wheeler insurance sector, you will likely find a good plan for your bike. However, after-sales service is one of the most crucial factors to check when choosing an insurance company. Check if the company you prefer offers post-sales service, and what kind of services you can avail. Many companies provide roadside assistance which can be very beneficial in case your bike breaks down in a remote location. Reading through the reviews written by people who have purchased bike insurance policies from the same company can help you make an informed decision.
Optional riders or add-on covers go a long way towards enhancing the level of protection offered by your two wheeler insurance policy. It is important to check if the company you prefer has an extensive range of add-on covers to supplement your bike insurance policy. Some companies only have a limited number of add-ons, while others have several different options. Choosing a company which has multiple options can be beneficial in the long run as you can avail added protection for your two wheeler.
Considering the number of new vehicles that are entering Indian streets every day, two wheeler insurance has become more important than ever in the country. Some of the major cities have seen a significant rise in the number of vehicles that are registered, thereby contributing to a rise in the number of two wheeler insurance policies purchased.
New Delhi, the capital of India, is one of the most populous cities in the country. The number of vehicles on the roads of Delhi is quite high, and the city is home to a large number of two wheeler insurance companies that offer bike insurance for scooters as well as motorcycles.
Mumbai, the capital of Maharashtra, is the most populous city in the country. It is also home to a large fleet of vehicles due to the large number of students and employed professionals in the city. The city has a several two wheeler insurance providers, and considering the traffic and risk of accidents in Mumbai, having two wheeler insurance in the city is crucial.
Bangalore is the capital of Karnataka and is home to more than 10 million people. Known as the Silicon Valley of India, Bangalore has attracted millions of people from across India thanks to an influx of jobs in the IT sector. A rise in two wheelers in the city was inevitable with the rise in population as most people want to have their own vehicles to get around. Two wheeler insurance in Bangalore has become necessary due to the number of accidents on the city’s roads.
Previously known as Madras, Chennai is the capital of Tamil Nadu. It is the largest economic, educational and cultural centre of South India. Not only is Chennai home to several million students and working class individuals, it is also one of the most visited cities by overseas tourists. As such, the streets of the city are always crowded and the incidence of road accidents is quite high, making it essential to have two wheeler insurance in Chennai.
Kolkata, or Calcutta as it was previously known, is the capital of West Bengal and is the principal educational, cultural and commercial centre of East India. It is also considered the cultural capital of India and is one of the most populous cities in the east of the country. Given the number of bikes in Kolkata, two wheeler insurance in the city is crucial as it can significantly lower your liability in times of emergencies.
The Insurance Regulatory and Development Authority of India, which is the regulatory body for the insurance industry in India, issues a registration number to insurance companies. This number is called the IRDAI registration number. The number is issued to insurers following mandated and rigorous stipulations set by the IRDAI. If an insurance company does not have the IRDAI registration number, it is probably a fraudulent organisation. The IRDAI registration number essentially serves as a mark of legitimacy and authenticity of an insurance company.
The website of an insurance company will have its IRDAI registration number. It is usually present in the footer of most insurer websites. You can also find this number in the advertisements, brochures, and policy documents of the company. Another place to find the IRDAI registration number of an insurance company is the website of the IRDAI. Here are the IRDAI registration numbers of some of the popular two wheeler insurance providers in the country:
The best insurance companies are those that have the highest incurred claim ratio and provide the best customer service. These two factors along with cashless claim settlement facility are the important factors to look at the time of picking an insurer. Listed below are some of the best insurance companies in the country:
The following are the main benefits of purchasing two wheeler insurance online:
Q. How can I check the status of my two wheeler insurance policy?
ANS: 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.
Q. What is the fine for riding without valid two wheeler insurance?
ANS: Using an uninsured two wheeler or one whose insurance has lapsed will result in a fine of Rs.1,000.
Q. What is the validity of a two wheeler insurance policy?
ANS: A two wheeler insurance policy is valid for 1 year, 2 years or 3 years depending on the tenure of the selected policy.
Q. How to renew expired bike insurance?
ANS: Expired bike insurance can be renewed by choosing a bike insurance policy, having the vehicle inspected, filling the form and paying the requisite premium.
Q. Can I buy a 2 wheeler insurance policy for a vehicle that doesn’t belong to me?
ANS: Yes. Anyone can buy a two wheeler insurance online, or from an offline source, for a vehicle that may not necessarily be their own.
Q. Are modified 2 wheelers eligible for such insurance policies?
ANS: 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.
Q. What are the factors that impact the applicable 2 wheeler insurance premium amounts?
Q. When must I report an accident to the police?
ANS: 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.
Q. If I have to take a two wheeler insurance policy, what documents will i be required to submit?
ANS: 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.
Q. What do you mean by a No Claim Bonus (NCB)?
ANS: 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.
Q. 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?
ANS: 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.
Q. What are the various scenarios / circumstances under which I can make a Personal Accident Claim?
ANS: 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.
Q. What are some of the primary factors which will affect or help reduce my Two Wheeler Insurance premium?
ANS: Some of the common factors which canaffect or reduce your two wheeler policy premium are:
Q. What do you mean by Cashless and Non-cashless / Reimbursement claim?
ANS: 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.
Q. I have purchased accessories for my vehicle while my policy is underway. Can I get these accessories insured between the ongoing policy term?
ANS: 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.
Q. What is meant by Total Constructive Loss in Two Wheeler Insurance?
ANS: 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.
Q. 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?
ANS: Yes, you will be eligible to make a claim even if your policy has expired, if the damage took place during the policy tenure.
Q. What do you mean by Nil Depreciation?
ANS: 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.
Q. 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?
ANS: 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.
Q. How will my Two Wheeler policy be affected if I change my job or change my location?
ANS: 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.
Q. In 2 wheeler insurance terms, what is meant by electrical and nonelectrical accessories in ? How is their value calculated?
ANS: 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.
Q. What is an endorsement in case of a two-wheeler insurance?
ANS: When you have a motorcycle insurance, you can add an endorsement to your car insurance policy. It will have to be filed when a change in the policy is made. This endorsement document will provide you with basic protection when you make any changes and this document will serve as proof. When you modify your policy terms due to certain reasons, you will be required to make an endorsement. You will need to make an endorsement when you make certain changes to your policy details such as agreed value clause, change of vehicle, lease agreement, installation of anti-theft device, when your two-wheeler is laid up in the garage for repairs, change in hire purchase agreements, new discounts from automobile associations, and additional discounts for modified bikes for handicapped or blind people.
Q. Can I get personal accident cover with my motorcycle insurance?
ANS: Yes, you can obtain a personal accident cover with your two-wheeler insurance. This will provide you (owner as well as rider) with compensation for injuries caused by an accident or a death caused by an accident. You will be required to pay an additional premium in order to secure this benefit. It also offers compensation for permanent or temporary disability caused by an accident. When you meet with an accident, you may have high hospitalisation bills. With this cover, you can get reliable compensation to cover your daily hospitalisation bills. This cover also offers non-stop roadside assistance along with professional support for filing claims accurately.
Q. What do I do in case of loss or theft of my bike?
ANS: If your motorbike has been stolen or lost, you will first have to get in touch with your insurance company and the police. To file a claim for loss or theft of bike, you should have a third-party cover and fire and theft cover or a comprehensive cover in your policy. You will need to file a First Information Report (FIR) with the police instantly after you realise that your bike has been stolen or lost. You will then need to fill your claim form with relevant details regarding your vehicle policy. Next, you have to submit your documents with your driving licence, registration certificate of your bike, a letter written to the RTO about the theft, and your FIR. Then, the police will provide the final ‘non-traceable’ report. Once, the claim is accepted, you will have to move the RC of the vehicle in favour of the insurer.to give your payment receipt and and repair bills to your insurance company. According to the surveyor’s report, a particular amount will be returned to you within a period of 7 working days.
Q. How to purchase LTTW (long-term two-wheeler insurance)?
ANS: You can purchase LTTW (long-term two-wheeler insurance) by going to the official website of any insurer that offers such policies. You will have to choose your policy period for 2 or 3 years and then select your coverage type. You will first have to enter relevant personal details in order to compute your premiums according to your policy period and type of coverage. If you have a regular policy, you can switch to a long-term policy while renewing your existing policy. You can then buy it by making a one-time payment.
Q. What is the tenure of a bike insurance policy?
ANS: The tenure of a bike insurance policy typically ranges from 1 to 3 years. It depends on your insurer and the policy period that you choose for your insurance plan.
Q. When is bike inspection mandatory for the policy?
ANS: Bike inspection is the physical examination of the condition of your two-wheeler. It is mostly mandatory for buying a policy when you buy through offline methods. When you buy a plan offline, you will be expected by your insurer to go through the vehicle examination process. You will also need to go through a bike inspection process compulsorily when you are renewing your policy. You may also need it when you modify the type of your coverage. It is also needed when you make any modifications to your vehicle or when you make any modifications to your policy details.
Q. Can I buy bike insurance online?
ANS: Yes, you can purchase your bike insurance policy online by going to a third-party website or the official website of any two-wheeler insurer. The online purchase process is simple and self-explanatory.
Q. Can I renew two-wheeler insurance policy online?
ANS: Yes, you can renew your two-wheeler insurance policy by visiting your insurer’s website or by going to a third-party website. You will have to enter your policy number and your vehicle registration number. You will also have to key in your personal details and then get quotes for your renewal. You can then choose your existing insurer or pick a new insurer according to your preference and convenience.
Q. What to do if my insurance policy is lost?
ANS: If you lose your insurance policy, you should instantly inform your insurance company. You will also have to notify about the loss by visiting the closest police station. You will need to file an FIR and keep a copy of the FIR with you for further procedures. You will have to provide accurate details regarding your policy.
Next, you have to apply for a duplicate bike insurance policy. You will need to specify the reason for this application. You will be required to pay a fee while applying for the duplicate policy. In case you had a joint policy document, then all the policyholders of the policy will need to apply together for the duplicate document.
Next, you will be required to sign an indemnity bond. This bond is made on a non-judicial stamp paper for the duplicate insurance policy. Apart from you, two witnesses can sign this bond (individuals who are not your family members) to enhance the credibility of your bond. This bond will have the policy number and the full name of the policyholder. You may also be asked to furnish a surety bond to prove that you are financially secure.
You may also be recommended to circulate an advertisement in a newspaper which states that you have lost or misplaced your two-wheeler insurance documents. You may also send a copy of this particular advertisement to your insurance company. Once your application is accepted, the insurer will evaluate your case thoroughly and then provide you with a duplicate insurance policy after proper verification. The terms and policy details will be retained as before. You will receive it most likely in a week. On this new bike insurance policy, the word ‘DUPLICATE’ will be mentioned in bold.
Q. What are the documents that I have to submit to enjoy occupation and age discounts?
ANS: In order to procure age discounts for your bike insurance, you will be required to show your proof of date of birth such as driving license, electoral ID card, or passport. For occupation discounts, you can show documents such as your most recent payslips, your offer letter from your employer, your employment letter, etc.
Q. What information do I have to provide to get a motorcycle insurance?
ANS: You will be required to provide very basic information when you want to apply for two-wheeler insurance. The details will include your name, mobile number, email address, residential address, vehicle model, vehicle make, year of registration, vehicle variant, engine number, and chassis number.
Q. If I buy a new bike, can I use my present bike insurance policy for it?
ANS: No, you will have to transfer your two-wheeler insurance policy of your old bike to the new owner. You will have to take a new policy for your new bike. If you have earned a no-claim bonus for your old bike’s policy, you will be allowed to transfer it to your new bike’s new policy. It is essential to transfer your present insurance to the new owner and buy a new one for your new bike.
Q. Why must I buy comprehensive two-wheeler insurance policy when only death, injury, and property loss of the third party are mandated by the Government?
ANS: The government and road vehicle laws have made insurance compulsory only for death, injury, and property loss of the third party. There is no compulsion for you to buy a comprehensive two-wheeler policy. However, if you do take a comprehensive policy, you will receive extensive protection for you, your vehicle damages, damages caused by fire or theft, and damages caused to third party. You can go for comprehensive coverage if you want to save on your repair costs. Without comprehensive coverage, you may end up paying very high expenses on your vehicle maintenance.
Q. Can I avail no-claim bonus on expired policy?
ANS: Yes, you can procure your no-claim bonus on an expired policy within 90 days after your policy lapses. Your no-claim bonus will not be given to you if you do not renew your bike insurance policy within 90 days after it expires.
Q. Can I change the two-wheeler insurer I am registered with?
ANS: Yes, you can change your two-wheeler insurer according to your preference. You can change your insurer while renewing your policy. If you purchase a new bike also, you can cancel your present policy and shift to a new insurer. If you are selling your old bike to someone, you will need to transfer the policy to the new owner and then you can change your insurer for your new bike.
Q. What is the process of changing my two-wheeler insurer?
ANS: You can change your motorcycle insurer while renewing your present policy or while renewing an expired policy. You can do this on the official website of a bike insurer or on a third-party website. You will have to first find a quote for your policy. You can do this by selecting the option ‘renew an expired policy from other insurance company’ or ‘renew an existing policy from another insurance company’. You will then have to furnish your vehicle registration number. You will have to provide your personal details such as mobile number, email address, etc. You will then get a quote and then you can decide if you want to go ahead with the policy or not.
Q. Is theft covered under my bike insurance?
ANS: Theft is generally covered under bike insurance when you take comprehensive coverage. You will need to check your coverage details to get a clear idea. In India, there are 2 types of coverage and they include liability only insurance and comprehensive insurance. If you have a liability-only insurance policy, theft will not be covered under your policy. If you have taken a comprehensive insurance policy, you will get coverage for theft as it covers damages or losses caused due to natural calamities as well as man-made calamities. Theft of vehicle or vehicle parts is a man-made calamity.
Q. What is the sum assured if my bike is stolen?
ANS: If your bike gets stolen, the sum assured will depend on your policy’s insured declared value (IDV). The IDV is the amount that is arrived at after deducting the depreciation from the bike manufacturer’s listed selling price.
Q. Does the comprehensive policy cover the pillion rider?
ANS: No, the comprehensive policy usually does not cover the pillion rider. It covers only damages caused to you, your vehicle, and your property, damages caused by fire and theft, damages caused to third party. You will have to take an additional cover for getting protection for the pillion rider.
Q. Do I have to get a bike insurance?
ANS: Yes, if you own a bike, you must get a bike insurance policy. It is compulsory in India as per the law if you want to use your bike on the road. It is also important as it helps you in receiving reliable protection when your bike gets damaged. It will cover your losses and costs when your vehicle suffers damages or when you suffer from bodily injuries due while riding your vehicle. Moreover, it offers coverage for damages caused to third-party. This is the most basic type of coverage and the mandatory type of coverage. Hence, you definitely need to get a bike insurance.
Q. What is a voluntary deductible?
ANS: A voluntary deductible is the surplus part of your two-wheeler insurance claim that will not be covered by your insurer. It is typically a standard amount that will be mentioned in your policy document and you will be required to pay this amount on your own. In two-wheeler insurance, your voluntary deductible will be determined according to your bike’s cubic capacity (CC). You will need to note that if your deductible is high, your premium will be low.
Q. How is the premium determined after the two-wheeler policy has expired?
ANS: If your two-wheeler policy has expired, your premiums will be fixed according to your vehicle’s age, your vehicle’s make, your no-claims bonus, etc. If you have let your two-wheeler policy be invalid for a period of more than 90 days, your no-claims bonus will be cancelled. Hence, your new premiums will be high as you will miss the discounts.
Q. In case I meet with an accident, when should I inform the police?
ANS: You should evaluate the situation and then decide if you should inform the police. When a damage is caused to another person, another person’s property, an animal, another person’s vehicle, etc. you will need to inform the police instantly. You will have to file an FIR by narrating the incident. If the accident has resulted in a bad road blockage situation, you will have to inform the police. If you do not provide your details to the police on time, you may get into a troublesome situation and this is absolutely not advisable. It is very important to call the police right after an accident for insurance purposes. Whether you are at fault or the other party is at fault, it is always recommended to call the police. It is recommended to get in touch with the nearest police station.
Q. Which types of losses or events are not covered under the long-term two-wheeler policy?
ANS: Under a long-term two-wheeler insurance policy, the types of losses or events that are not covered include the normal exclusions. Some of them are electrical or mechanical breakdowns, nuclear risk, ordinary wear and tear of vehicle, depreciation of vehicle parts, riding under the influence of alcohol or any other drugs, damage caused by mutiny and war, etc.
Q. How to determine the vehicle IDV for two-wheeler insurance?
ANS: Your bike policy’s Insured Declared Value (IDV) is the highest sum assured that is allotted by your insurer in case your vehicle gets stolen, damaged by fire or an accident. It will be fixed according to your bike’s listed selling price which is fixed by bike manufacturer. This selling price will be quoted for your insurance plan when your policy period begins or when you renew your policy. In the IDV, your insurance costs and registration expenses will not be added. If you have added extra accessories in your vehicle that are not factory fitted, your IDV will be computed exclusively for these accessories. It will not be counted in your regular IDV. Your vehicle make, model, variant, and state of registration will determine your IDV. You will have to negotiate with your insurer to obtain a good IDV for your vehicle. Ityou. IDV is a major element that
Q. I met with an accident some time ago but I lodged the claim after the policy expired. However, the event took place when the policy was still active. Will I be allowed to make the claim?
ANS: The law states that you must lodge a complaint and file a claim for your insurance regarding an accident within 48 hours. Though the event took place when your policy was active, you filed your claim only after it lapsed. Hence, it is invalid. You should have lodged your claim right after the accident took place and renewed your policy on time before it lapsed.
Q. I was driving a vehicle registered under someone else’s name. However, I pay the premiums towards the policy. Will I be able to avail personal accident cover if need be?
ANS: Whenever you take an insurance policy, you should always make sure your name in the policy is the same as the name in the registration certificate of the vehicle. This is mandated by the law. Hence, before you apply for a cover, you must transfer the name of vehicle ownership and registration to your name. You will need to make this change and then continue to pay your premiums. In this plan, if your base policy does not have a personal accident cover, you will be required to take an additional cover from your insurer in order to receive this coverage. Most two-wheeler insurers offer this as an additional cover.
Q. How can I get third-party cover in long-term bike insurance policy?
ANS: You will obtain a basic third-party cover whenever you take a long-term bike insurance policy as it is the most basic type of cover. The IRDAI generally increases third-party premiums on an annual basis. With a long-term cover, you can skip these premium hikes successfully.
Q. What can be classified as a constructive total loss under a bike insurance policy?
ANS: When your vehicle gets damaged due to an accident or fire or theft, you may have a constructive total loss or a total loss. If your vehicle repair expenses are higher than 75% of the insured declared value, you will incur a constructive total loss.
Q. I recently installed the anti-theft alarm. Am I eligible for premium discounts?
ANS: Yes, you will be eligible for premium discounts when you install an anti-theft alarm at a later stage. This discount is applicable only on the damage that is caused to your own vehicle. It is not given on damages caused to the third party. You will typically receive a discount of 2.5% on a premium of up to Rs.500 for your two wheeler insurance. The discount will depend on your insurer.
Q. How to buy two wheeler insurance online?
ANS: You can buy two wheeler insurance online by registering on the official website of any insurance company or by visiting any third-party website that deals in insurance. You will have to select new policy or policy renewal. You will have to furnish details regarding your vehicle features, your personal details while applying.
Q. How to calculate two wheeler insurance premium?
ANS: You can calculate your two-wheeler insurance premium by using an online premium calculator. You will have to enter your vehicle registration number, name as in vehicle registration, your vehicle make, model, body type, vehicle manufacturer, fuel type, etc.
Q. How to claim bike insurance?
ANS: You can claim your two-wheeler insurance by first informing your insurer about the damages caused to your vehicle. The reason for the damages can be accident, theft, fire, etc. Next, you will need to send your vehicle for repair. You will have to fill your claim form with full details and give an estimate regarding your expenses. Your insurer will then make arrangements for examination of the vehicle. You will have to present relevant documents for the examination process. Now, you and your insurer will need to negotiate and then agree upon a claim amount. Accordingly, your claim will be settled.
Q. How to find bike insurance policy number?
ANS: It is very important to have your bike insurance policy number. In case you do not have it, you can find it by going to the official website of your bike insurer. You will need to enter your vehicle engine number, registered mobile number or chassis number. You may have to enter any 2 criteria to arrive at your policy number. After you click ‘Search’, you will obtain your policy number.
Q. How to pay motorcycle insurance online?
ANS: You can pay your bike wheeler insurance premiums online through multiple modes. You can choose from net banking, debit card, credit card, Standing Instruction (SI), Electronic Clearing Service (ECS), etc. and make your payment.
Q. Why is two wheeler insurance mandatory?
ANS: Bike insurance is mandated by the law as it is very important to keep you safe and secure when you use your vehicle on the road. It will protect you against losses suffered by the third party involved in an accident. It is compulsory in India for an insurer to cover third-party risk when a damage is caused.
Q. How do I transfer my No Claim Bonus when shifting insurers?
ANS: When shifting between insurers you can preserve your accrued NCB by procuring an NCB retention letter from the first insurance company. This letter entitles you to preserve the NCB for up to 90 days within which you should purchase a new insurance policy for your two-wheeler. You can get the NCB attached to the new insurance policy at the time of purchase. In case you do not get your vehicle insured within 90 days, you may lose out on the NCB benefit that you have accumulated over the years.
Q. When the NCB is transferred from one insurer to another, at what rate will the transfer be?
ANS: The NCB will be transferred to the new insurance company at the same rate as the previous insurer. The No Claim Bonus will be available as long as you show evidence in the form of an NCB retention letter/renewal notice/a written declaration to that effect.
Q. What is the difference between a 1-year bike insurance policy and a long-term policy?
ANS: The key differences between a one-year two-wheeler insurance policy and a long term policy are as follows:
|Long term policy||One year policy|
|The tenure of the policy can be 2 or 3 years||The policy is valid for a duration of 1 year only|
|In case there is a premium hike after 1 year, there is no impact on the policyholder. Effectively, the premium for this policy remains the same throughout the tenure||Hike in premium is likely to be effective every year based on regulatory changes|
|The NCB is reduced after a claim, but is not reset to zero||Even if there is 1 claim, the NCB is reset to nil|
Q. How does No Claim Bonus work?
No Claim Bonus is essentially a reward for your diligence when riding your two wheeler. If you go through an entire policy year without making a single claim, the insurance company rewards you by lowering your premium for the following year. The higher the number of claim-free years, the higher the discount you will be eligible for.
Q. What are the documents needed if I wish to transfer the No Claim Bonus in long-term two wheeler insurance?
If you have a long-term two wheeler insurance policy and would like to transfer your No Claim Bonus, you will have to provide certain documents as evidence that you are eligible for the bonus. These documents include a renewal notice or a letter from your previous insurance company confirming that you are entitled for the No Claim Bonus, or a written declaration from the insurance company with which you accumulated the bonus.
Q. What is ARAI and how is it important in two wheeler insurance?
The full form of ARAI is Automotive Research Association of India. It is the organisation that approves a number of things in two wheeler insurance. For instance, if you install an anti-theft device that is approved by the Automotive Research Association of India, and the installation of said device has been certified by the agency, you will be eligible for a discount of 2.5% on the own damage premium subject to a maximum of Rs.500.
Q. Is there an accident cover for unnamed passengers?
Yes. Passengers apart from the insured individual, such as the pillion rider or the co-passenger, can be covered under the accident cover provided the policyholder pays an extra premium. This cover offers financial protection in case of the disability or death of a pillion rider or co-passenger in case of an accident.
Q. Is it easier to renew my two wheeler insurance policy online?
Yes, renewing your two wheeler insurance policy online is much easier than actually going to a branch of the company for renewal. The benefit of online renewal is that you can do it at any time and from anywhere as long as you have an internet connection. All you have to do is visit the website of the company from which you purchased the insurance policy and renew it by following the simple procedures mentioned therein.
Q. What does long-term two wheeler insurance mean?
LTTW, or long-term two wheeler insurance as it is called in its extended form, was introduced by the Insurance Regulatory and Development Authority of India. If you purchase LTTW, you will not have to renew your two wheeler insurance policy on an annual basis as it provides coverage for a period of three years. One of the main benefits of purchasing long-term two wheeler insurance is that you will not have to worry about the revision of third-party insurance rates every year, thereby ensuring that you are protected for the long term.
Q. How long does a two wheeler insurance policy last for?
A regular two wheeler insurance policy, whether it is a liability-only policy or a comprehensive policy, lasts for a period of one year from the date on which it becomes active.
Q. What is Insured Declared Value and how is it calculated?
The Insured Declared Value, or IDV of a vehicle must be fixed depending on the listed selling price of the make and model of the vehicle. The IDV of a vehicle is fixed at the start of an insurance policy. In case a policy is renewed, the Insured Declared Value is adjusted for depreciation. There is a depreciation schedule following by insurance companies to calculate the IDV of a vehicle. This schedule is as follows:
|Vehicle||Percentage of Depreciation Fixing IDV|
|Not exceeding 6 months||5%|
|Exceeding 6 months but not exceeding 1 year||15%|
|Exceeding 1 year but not exceeding 2 years||20%|
|Exceeding 2 years but not exceeding 3 years||30%|
|Exceeding 3 years but not exceeding 4 years||40%|
|Exceeding 4 years but not exceeding 5 years||50%|
Q. What are deductibles?
A deductible is basically an amount that the policyholder will have to bear when making a claim. The amount will be subtracted from the claim amount and the policyholder will bear this expense while the remaining claim amount will be borne by the insurance company. The Compulsory Deductible of two wheeler insurance plans is Rs.100.
Q. What are cashless and non-cashless claims?
Cashless claims are those wherein the costs of repairing the vehicle are borne by the insurance company and paid directly to the garage if the vehicle is repaired in one of the company’s network garages. Non-cashless claims, on the other hand, are those wherein the policyholder will have to bear the cost of repairs to the vehicle and then submit the original payment receipts and bills to the insurance company after which the company will reimburse the amount to the policyholder.
Q. How can I avail third party cover in a long-term two wheeler insurance plan?
In order to avail only third party cover in a long-term two wheeler insurance plan, an underwriter from the insurance company will carry out a risk assessment after which you will know whether or not you are eligible for the aforementioned cover.
Q. What are the organisations of which I need to be a member of to avail discounts on my two wheeler insurance policy?
The associations that qualify for discounts on your two wheeler policy vary from insurance company to insurance company. However, if you are part of certain organisations, you will receive a discount on the own damage premium of your two wheeler insurance policy. These associations include the Automotive Association of Eastern India, the Western India Automobile Association, the Automobile Association of Upper India, the Automobile Association of Southern India, etc.
Q. Will I be penalised for not insuring my two wheeler insurance?
Yes. Section 197 of the Motor Vehicles Act, 1988, stipulates that riding without a valid two wheeler insurance policy can result in a fine of up to Rs.500, or imprisonment for a period of three months, or both.
Q. What are the circumstances under which I must file a report with the police?
If you have a valid two wheeler insurance policy, there are certain circumstances under which you can file a report with the police. These circumstances include bodily injury to self or third party, third-party property damage, or theft. The report must be filed at the nearest police station of the place where the incident occurred.
Q. What are the factors that determine the premium of a two wheeler insurance policy?
The factors that determine the premium of a two wheeler insurance policy include the cubic capacity of the engine, the geographical zone, the age of the two wheeler, the Insured Declared Value of the vehicle, and the kind of model.
The Insurance Regulatory and Development Authority of India (IRDAI) has released the new prices for third-party motor insurance premiums for FY20. The new rates are slated to come into effect from June 16. IRDAI had issued a draft in May, proposing a hike in the third-party insurance rates. After assessing the feedbacks, the industry authority has finalized the new rates.
According to the finalized rates, cover for two-wheelers under 150cc will cost Rs.752, cars above 1000 cc and less than 1500 cc will have a third-party cover worth Rs.3,221. Insurance for new private cars 3-year single premium will cost Rs.5,286 (under 1000cc), for new-two wheelers under 150cc, the 5-year premium will cost Rs.3,285.
06 June 2019
Suzuki Motorcycles India is on course to reach 1 million sales in India by the end of this fiscal year. Currently, Suzuki is fulfilling the orders from its base in Gurgaon. However, the company has now initiated a feasibility study for setting up a second Greenfield Plant in India. Suzuki is expecting to achieve total sales of 8.6 lakh units in the domestic market by the end of this year. The company is expecting an additional 1.1 lakh in sales from exports.
Suzuki is expecting a growth of 23 Per cent according to Koichiro Hirao, Company Head. He stated that if the current trends and momentum continues, the company may hit the million mark by the end of this year. However, Suzuki's priority right now is to expand the network of dealerships and reach new markets. If Suzuki hits the 1 million mark this year, the company will have to find the new capacity to address future demand.
04 June 2019
The market has become immensely competitive in the recent times. With the competition rising steadily over the generation, every insurance provider and company in the sector is coming up with digital initiatives and solutions to render customer experience better and satisfying. The world has become hyperconnected in the 21st century and keeping up with this pace, ICICI Lombard has launched a Do-It-Yourself, more commonly known as DIY solution wherein people can manage their claims. This DIY solution will also benefit the insurance providers and network partners at multiple stages of the policy booking and claims process. The main aim of this solution is substantially reducing turn-around times, completely obscuring non-value adding components, and enhancing efficiency with an increased control on parameters such as quality that in turn will lead to an increase in customer satisfaction. ICICI has established a mobile application solution that allows customers to upload pictures of their vehicles in case of a policy break in cases of usage of mobile technology. This further helps the company understand the pre-existing damages while an AI solution determines the damages incurred by the vehicle. The customer, in this case, receives instant approval for his/her policy.
31 May 2019
Hero FinCorp is the retail lending arm of Hero MotoCorp Limited. The company is now in advanced talks with Reliance General Insurance from Reliance Capital. The estimated cost of the deal might be ranging between Rs.5,500 crore and Rs.6,000 crore. This is because Reliance Capital is looking for ways get rid of some of the Rs.18,000 crore debt the company has. The deal will bring down the debt down to Rs.9,000 crore. Reliance General Insurance is currently 100% owned by Reliance Capital. It was initially thought that the company will be planning to sell 49% of the company. But it now looks like the company is planning sell the entire company. It is not yet known if Ambani will retain a small percentage of the stake and remain as a junior partner. Hero FinCorp has starting to raise some funds by mandating Credit Suissse. Hero had earlier tried to tie up with Ergo to get a life insurance company license. Hero has been looking for opportunities in the financial services segment for quite some time now. It is also believed that Hero is in contact with Kishore Biyani for the stake he owns in Max Bupa and Future Generali.
30 May 2019
If you take riding without a helmet lightly, then apart from compensating on your safety, you’re in for a huge shock. Recently, the he Motor Accidents Claims Tribunal in Madurai awarded an accident victim Rs.45.6 lakh as he/she was grievously injured, and the injuries could very well be permanent. However, just because the pillion rider was not wearing the helmet, the Tribunal court has reduced the compensation that the insurance company has to pay out to Rs.39.5 lakh, 6 lakhs less than the actual insurance compensation amount. The accident took place next to Avaniyapuram bypass road in Madurai in 2013 and the victim was grievously injured when another bike collided head on. As per the reports, the victim suffered brain damage and was hospitalised for a period of 3 months in a private hospital. However, to avoid the payout, the insurance company testified that the victim maneuvered his vehicle without any proper signal. The reason was overlooked by the Madras High Court, but for the negligence of the rider and pillion rider who did not wear helmets, the judge cut 15% of the payout and ordered the insurer to make a payout of Rs.39.5 lakh.
29 May 2019
Just last year, the Supreme Court of India mandated the sale of long-term third-party insurance policies for 4-wheelers and 2-wheelers. Now, car owners will have to buy the 3-year third party insurance policy and bike owners will have to purchase the 5- year third-party insurance policy. That said, with 3 –5 premiums in one shot, vehicle owners will not need to worry about the hassle of renewing their car insurance policy but the premiums will get dearer. That said, the IRDAI has now revised the annual premiums, and those who will be purchasing a policy after June or July will have to pay more for their third-party insurance policy. For cars below 1,000 cc, the premium will be raised from Rs.1,850 to Rs.2,120, cars above 1,000 cc and less than 1,500 cc the premium will cost Rs.3,300 from the previous Rs.2,863. That said for cars above 1,500 cc, the premium will remain at Rs.7,890. Foe 2-wheeler up to 75 cc, the premium will be raised marginally to Rs.482 from Rs,427, and vehicles up to 150cc, the premium will be increased by Rs.32 to Rs.752. For bikes up to 350 cc, the premium will be Rs.1,193 from Rs.985, and the premium for vehicles above 350cc, the premium will remain unchanged.
27 May 2019
While the increase in the third-party premium has not affected the sales of two wheelers and automobiles, insurers are suggesting that the increase in the costs of the premium might affect the renewal rate of the auto insurance. The Insurance Regulatory and Development Authority of India (IRDAI) has proposed an increase of third-party cover. This increase will be 20 percent for two wheelers with engine capacity ranging between 150 cc and 350 cc and 15 percent four cars. It was made mandatory by the Insurance Regulatory and Development Authority of India for the general insurers in the country to offer long term insurance plans to new car buyers. This combined with an increase in the personal accident cover resulted in the increase of the insurance costs for two wheelers. The increase is estimated to be ranging between 10 percent and 19 percent. This is one of the main reasons for a drop in two wheeler sales. The new rates will mostly be implemented at the start of the month of June. The IRDAI is waiting for comments from the stakeholders and will make the decision accordingly.
22 May 2019
The insurance for third-party insurance policies can be expected to go up as the regulator IRDAI has proposed an increase in the premium rates for the current financial year.
The Insurance Regulatory and Development Authority of India (IRDAI) has proposed an increase in the third-party insurance premium rates for four-wheelers and below 1,000 cc to Rs.2,120. The rates were pinned at Rs.1,850 earlier. The regulator has also proposed an increase in the premium for cars between 1,000 cc and 1,500 cc to Rs.3,300 as opposed to the existing Rs.2,863 mark. However, no changes have been proposed for the cars with an engine capacity of more than 1,500 cc. The rate for these cars stays pinned to the existing Rs.7,890 mark. IRDAI has also proposed a hike in premiums for third-party insurance for two-wheelers. The changes include a hike to Rs.482 for two-wheelers below 75 cc, as well as, a hike for two-wheelers ranging between 75 cc and 350 cc. The insurance premium for two-wheelers with a capacity of more than 350 cc does not get a hike. The regulator has also proposed a discount in premium rates for electric vehicles.
21 May 2019
Royal Enfield is one of the largest premium motorcycle manufacturer in India. The company is now planning to invest Rs.700 crore in the form of capital expenditure for the present financial year. The amount allocated will be spent on constructing a technology centre, developing new products and platforms, and the constructions of the phase-2 of the plant in Tamil Nadu. Close to 8.22 lakh units were sold by Royal Enfield in the last financial year. The production capacity guidance value was 9.25 lakh. This was reduced from the initial target of 9.5 lakh set by the company. Royal Enfield is planning to produce 9.5 lakh vehicles for the 2019-20 fiscal. The current production capacity of the company stands at 90,000 units a month which is close to 10.8 lakh units every year. Building of phase 2 of the plant will help the company produce 25,000 more Royal Enfield bikes every month. This will help increase the production capacity of the company to 13.8 lakh. Sales of the bike reduced by 13% during the January-December quarter. The company is hopeful of achieving a growth rate of 16% this year.
20 May 2019
Addressing the need to travel long-distances in minimum time and at a high speed, Belgium-born Raphael Moszynski launched Blitz Motors, an organisation that develops high-speed electric motorbikes, targeted primarily at the corporate sector. The company’s Tel Aviv garage is currently lined up with electric motorbikes for chains such as McDonald’s and Domino’s Pizza. This development and subsequent launch of electric motorbikes has emerged from the need to travel at a high speed and the fact that there are basically no fast electric motorbikes traveling at a high speed. Furthermore, mainstream gasoline-fueled motorbikes take a lot of effort and cost a lot of money for maintenance. The electric motorbikes produced by Blitz Motors are highly efficient and they can reach a speed of 120 kph. They are also capable of driving large distances, way more than a regular gasoline-fueled motorbike. The motorbikes developed by Blitz operate via smartphones, not keys, unlike traditional motorbikes. Even though the high-speed motorbikes are developed in China, their designs are done in Israel, along with the battery production and various other electrical parts. The Israeli company is currently eyeing India to set up shop. They are already done with setting up a distribution model for the local Indian market.
13 May 2019
Digit Insurance is one of the reputed, most popular motor insurance company operating in India, in today’s date. Currently, the company offers motor insurance, jewelry insurance, mobile insurance, and travel insurance, among other types of insurances. The company is believed to sell health insurance to customers very soon. Recently, Digi Insurance announced that its customer base has crossed 2.8 million and has closed close to 35,000 claims with a collection of USD 174 million as premiums in the previous financial year. The company’s hidden trick of the trade is to keep things simple and use technology advancement as an enabler to foster growth and accomplish many milestones. With 174 million as a premium collection for the last fiscal year, the company’s Net Promoter Score (NPS) currently stands at 72%. Furthermore, during the fourth quarter of financial year 2018-19, the company hugely gained a 2% market share in the motor insurance category. Moreover, the company currently has a Claim Settlement Ratio (CSR) of 96% for the private sector, 97% with respect to two-wheelers, 100% for domestic travel insurance, 99% with respect to international travel insurance, and 97% with respect to mobile insurance.
12 May 2019
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