Motor insurance in India is mandatory by law for all vehicles registered and plying on Indian roads. This rule also applies for two wheelers. Non compliance can lead to enforcement of legal punishments which includes hefty fines and prosecution under various road safety laws such as provisions under the Motor Vehicle Act. Having an insurance also provides a sense of security as riding two wheelers are more risky.
Cover for third party liability involving the insured two wheeler is compulsory, which simply means that damage or loss caused to a third party person/property must be covered by motor insurance. To understand this subject better, we must first uncover the two commonly terms used in the insurance parlance. Third party and Comprehensive cover.
Whilst the former only insures third party liability, the latter not only covers third party, but also damage/loss caused to the insured vehicle.
The third-party two-wheeler insurance premium rates have been revised by the Insurance Regulatory and Development Authority of India (IRDAI), as of 1 April 2017. The hike in premium was pretty high. The table below shows you the difference in the cost of third-party bike insurance premium:
Third Party Two Wheeler Insurance Rates in 2018
|Vehicle Engine Capacity||Percent Revised Premium Rate|
|Up to 75 CC||569|
|76 CC to 150 CC||720|
|151 CC to 350 CC||887|
|Above 350 CC||1,019|
Advantages & Disadvantages of Third Party Liability Insurance
|Advantages of Third Party Insurance||Disadvantages of Third Party Insurance|
Third-party VS Comprehensive Insurance
|Points Of Difference||Third-Party Two-Wheeler Insurance||Comprehensive Two-Wheeler Insurance|
|Coverage offered||- Covers losses or damages caused to a person or their property, or another vehicle due to an accident.||Covers financial and legal liabilities arising out of damages caused to a third-party as well as any loss or damage caused to your two-wheeler due to sabotage, accidents, fire, theft and vandalism, malicious acts, terrorism, and civil disturbances such as riots, natural calamities like earthquakes, floods, etc.|
|Exceptions Of The Policy||Damage or loss caused to your own two-wheeler Injury caused to self, due to accident Damage or losses as a result of the following: Theft Sabotage Natural calamities Fire Normal wear and tear Civil disturbance Mechanical or electrical breakdown Damage or loss caused in following circumstances: Riding without an active licence Riding under the influence of alcohol or drugs If the policy is lapsed||Damage or loss caused as a result of: - Usual wear and tear - Electrical or mechanical breakdown Damage or loss caused in following circumstances: Riding without an active licence Riding under the influence of alcohol or drugs If the policy is lapsed|
|Add-On Covers Available||Personal Accident cover||Return to invoice Zero depreciation Cover for accessories Pillion Rider Accident cover Roadside Assistance, and more|
|Cost||The coverage offered in a third-party insurance policy is limited. The policy is cheaper in comparison to a comprehensive insurance policy. The IRDA determines the premium of a third-party liability insurance every year based on engine displacement.||Comprehensive bike insurance is costlier in comparison to the third party insurance as it provides a greater scope of protection.|
|Which is better?||Limited coverage offered.||Extensive coverage offered Better protection|
Two Wheeler Insurance Renewal
A policyholder must renew their insurance policy before its expiry date. It is pertinent to ensure that your vehicle is safeguarded all through its lifetime against a variety of incidents causing financial losses. Policyholders can likewise hold the No Claim Bonus (NCB) and make use of discounts obtained using the same.
Prior to your insurance policy lapses, contact your insurance agency and inform them about the same. Also enquire if it is needed to get the vehicle assessed for which the insured will be required to plan a meeting with an assigned agent of the insurance company. If you wish to switch your policy from one insurer to another, you can retain the NCB if you do so within 90 days from the date of expiry.
How to Renew Two Wheeler Insurance Policy Online?
Getting your motorcycle isn’t optional any longer. It is an absolute necessity if you value your expensive vehicle and your own life. With digitalisation touching each facet of life, the insurance companies too have gained an impressive ground in making the purchase and renewal process much easier. You may compare different available policies in various third-party insurance and finance websites and choose the policy that best meets your requirements. However, you must not blindly select a policy based on its premium cost and look for important factors such as the coverage offered, exceptions of the policy and so on.
Things To Remember For Bike Insurance Renewal
- Renew well ahead of time and monitor the expiry date of the policy to avoid riding without an insurance.
- Discover and compare various motor insurance policies in India before renewing your policy. You may find a superior policy that offers you greater coverage at a lesser premium.
- Bear in mind to make use of No Claim Bonus (NCB) if there was no claim made from your end.
How A Long-Term Two-Wheeler Insurance Policy Can Be Beneficial
Most people in India ignore to renew bike insurance policies as they find it hard to recall dates of policy expiry. As a result, they run into the risk of riding uninsured. For many such individuals, the Insurance Regulatory and Development Authority of India (IRDAI) has permitted insurers to offer long term motor insurance policies. With this move, the IRDAI plans to encourage vehicle owners to have a backup mechanism to safeguard them in a variety of misfortunes that may occur while riding their vehicles. A policy can be bought for a period up to three years.
Documents Needed For Motor Insurance Policy Renewal
Against to the customary practice, policyholders nowadays do not need to keep running from counter to counter with several documents to renew their insurance policies. The whole process can now be done online without any hassles. The online policy renewal may also save you from vehicle inspection and may get you several discounts on renewal. The following documents and details are needed to renew a two-wheeler insurance policy online:
- Details of the policyholder: Name, date of birth, address of residence, details of the occupation, and gender.
- Copy of driving license
- Registration Certificate of the vehicle and registration number
- Address proof
- Policy number of the existing insurance policy
What Should You Choose?
A Comprehensive cover is highly recommended. However, the onus to choose the best one is on you. If you think the riding conditions in your locality is safe and not prone to accidents and mishaps, a Third Party Cover would suffice. The only major aspect that can hold you back from availing a comprehensive policy is the premium amount. Considering the steady rise in road accidents in India owing to multiple factors, a Comprehensive insurance will cover you against all possible liabilities and expenses.
How Do I Buy a Third Party Two Wheeler Insurance
The insurance cover will be provided by the dealer during the handover process if you’re buying a new two wheeler. Otherwise, just before expiration of the policy term, you can renew the Third party cover on the web portal of the insurer under the relevant section. Ensure the renewal is done before the actual expiry date to avoid inspection charges.
A highly recommended homework before renewal is to get online on a neutral policy comparison website, compare two wheeler insurance plans and avail an insurance that best suits your requirements. You not only benefit from multiple offers, but also have the advantage of receiving discounts.
Documents You Must Keep Handy During Insurance Renewal
- Existing policy for reference
- Registration Certificate of your Two Wheeler
- Debit Card/Net Banking details for payment
FAQ's – Frequently Asked Questions
- Can I cancel my two-wheeler insurance policy before it expires?
Yes, this is possible. However, you have to submit the relevant documents that indicate either of the following:
- Your vehicle has been insured by another insurance provider
- The Registration Certificate of your two-wheeler has been revoked by the RTO.
When the insurer cancels the policy, he will provide you a refund of the amount that remains, after deducting the premium for the duration when you were provided coverage. It should be noted that you can avail the refund only if you haven’t submitted any claims during the tenure of the policy.
- Can I avail the No Claim Bonus on my expired insurance policy?
- What should I do if my insurance policy is misplaced?
You should immediately contact your insurance provider and get a duplicate copy of the policy. You may be required to pay a fee for the duplicate. If it was an online policy, you will receive a soft copy of the same in your email. It should be noted that policy documents are usually signed digitally, and a coloured print of the soft copy would be considered valid.
- Is it mandatory to get your vehicle inspected before the purchase of an insurance?
Inspection of the vehicle is required only when you purchase a comprehensive insurance policy offline. Most insurance providers do not mandate inspection if the policy is purchased online.
- What is the tenure of a two-wheeler insurance policy?
Most insurers offer two-wheeler insurance that have a tenure of 1 year. But the IRDA has now introduced policies with a longer duration, i.e., 3 or 5 years. These long-term policies are characterised by the fact that premium rates will not be revised during the policy term, irrespective of whether the policyholder raises a claim or not.
- What are the advantages of purchasing a two-wheeler insurance policy online?
When you purchase a policy online, you save significantly on time and money. It is possible to compare policies, identify a policy with a suitable premium, and buy it without the hassle of any paperwork. The payment can be made conveniently through a credit card or via netbanking.
- Can I transfer my No Claim Bonus?
If you are shifting from one insurer to another, it is possible to transfer your No Claim Bonus, provided that your policy is renewed within 90 days from the date of expiry.
- When should I initiate the renewal of my two-wheeler insurance?
The renewal of your insurance policy should be done before it actually expires. This ensures that your vehicle is insured without any gaps in between. It also retains the No Claim Bonus that would provide you a significant reduction in premium for claim-free years.
- I just realised that my two-wheeler insurance has expired. What are the next steps?
It is mandatory that you obtain a fresh insurance cover. Contact your insurance provider and identify if it is necessary to have the vehicle inspected. If it is required, you will have to schedule an appointment with an authorised representative from the insurance company. You can also get the NCB transferred to your renewed policy, as long as you get the vehicle insured within 90 days from the date of policy lapse.
- What documents are required at the time of raising a claim?
When raising a claim, you would be required to furnish the following information:
- Your contact details
- Policy number, vehicle number, engine number, chassis number, etc.
- Date, time, and location of the loss
- The extent of the loss and its details
- The extent of injuries, if relevant
- What is an endorsement?
You will be eligible to receive the No Claim Bonus on your expired policy only if it is renewed within 90 days from the date of expiration.
An endorsement is a change in the insurance policy that is mutually agreed. Effectively, it is a document that includes the changes in policy terms.