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.
Advantages of Third Party Liability Insurance
- Referred to as the “Act Only” cover, this type of insurance cover fulfills the statutory requirement of having a cover for third party person/property damages.
- Premiums are economical compared to its counterpart. Can be easily affordable.
- Third party cover can be procured in easy steps with minimal documentation and checks as it does not involve cover for the insured two wheeler.
Disadvantages of Third Party Liability Insurance
- As stated earlier in this article, the main drawback is that it does not provide monetary cover for the insured vehicle or its occupants.
- In case of a mishap that causes major damage to the insured vehicle, the owner will have to shell out the repair and replacement expenses from his own pocket.
- Unlike Comprehensive coverage, very little rider and flexible options are available, limiting the enhancements.
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 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
FAQs – 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.