Two Wheeler Insurance
A two wheeler insurance policy provides you with the financial shield against the losses or damages incurred on or by your two wheeler. If you do not have a valid two wheeler insurance policy, the cost of all the financial losses, which may incur on or by your bike, would have to be borne by you.
So, it is advised to stay legally and financially protected with the shield of good two wheeler insurance policy at all times.
Is Two Wheeler Insurance Mandatory in India For Two Wheeler Owners?
All the motor vehicles plying on the Indian roads must have a valid motor insurance policy as per the Indian Motor Vehicles Act, 1988. It is illegal to ride your two-wheeler, bike, scotty, scooter, or moped on Indian roads without having a mandatory third-party liability cover.
It is mandatory to have a valid bike insurance policy as it provides financial protection against unfortunate accidents, which may damage to third-party property, and/or cause bodily injuries to the third-party driver or rider, pillion rider, and/or pedestrians.
In such cases, having a liability cover provides financial coverage, the insurance company pays compensation on behalf of the bike owner.
Basic About Bike Insurance
It is the fixed amount that you need to pay to the insurance agency to keep the policy in effect.
Two-wheeler insurance Policy
The premium amount of the policy will depend upon the Insured Declared Value (IDV). This affects how high or low that amount will be. Many insurance firms have contacts with the manufacturers and provide you with the optimum value.
This section includes protection against the following phenomenon: landslide, self-ignition, lightning, explosion, earthquake, flood, typhoon/hurricane, inundation, and hailstorm.
Under this, you will be covered against threats like burglary, theft, damage during transit, an accident caused due to external agents, terrorist activities, riots, and strikes.
Two Wheeler Insurance Policy Assures:
You Stay Financially Protected
A valid Bike Insurance policy provides you with financial coverage in case of bike theft or any damage caused by or to your vehicle.
You Are Legally Protected
It is mandatory to have a valid two wheeler insurance policy for your bike, scooter, sports bike, cruiser, etc. to ride them on Indian roads, so having a valid bike insurance policy keeps you legally protected.
You Are Protected With Personal Accident Cover
In case the policyholder meets an accident, which causes a partial or total permanent disability or dies due to an accident, the insurance company covers the insured up to the sum of Rs.15 lakh.
You Stay Worry-free
You can enjoy your ride without having any worries about riding your bike illegally, paying a hefty penalty, or paying from your pocket in case of third-party bodily injury or property damage.
Types of Two Wheeler Insurance Policies in India
There are two types of Bike Insurance policies:
- Third-party Liability Cover Only
- Comprehensive Policy or Package Policy or First-party
Two Wheeler Insurance Third-Party (TP) Liability Cover
Third-party liability bike insurance policy is mandatory in India as per the Indian Motor Vehicles Act, 1988.
Third-party two wheeler insurance policy covers only the damages or loss caused by the insured bike to the third-party either bodily injuries or property. In addition to that, a third-party bike insurance policy also provides a personal accident death cover of amount up to Rs.15 lakh for the policyholder.
However, you need to keep in mind that a TP policy offered by any of the insurance company will not cover any loss or damages incurred to own bike or theft of the insured bike.
Two Wheeler Third Party Liability Insurance Coverage:
Third-party Liability Coverage: In the case of third party bodily injury or death due to the insured two wheeler, the insurance company provides a liability cover.
Third-party property Damage Coverage: In case of any loss or damage to a third party property, the policy provides coverage up to an amount of Rs. 7.5 lakh.
Personal Accident Coverage: A third-party two wheeler insurance policy covers an owner-driver and optional pillion rider cover.
- Owner-Driver Personal Accident Cover: In case of a permanent total disability or an accidental death, the policyholder is covered with a sum insured of up to Rs.15 lakh on an additional premium.
- Pillion Rider Accident Cover: Add a pillion rider personal accident cover, which provides coverage up to the sum insured of Rs.1 lakh on an additional premium.
Personal Accident Cover Table:
|Accidental Event||% of Sum Insured|
|The dismemberment of both the limbs or loss of vision in both eyes or one limb and one eye||100%|
|The dismemberment of one limb or loss of vision in one eye||50%|
|Permanent Total Disability||100%|
What is Not Covered in Liability Cover Only
- The policies don’t cover own damage of your two wheeler. Also, any damage incurred to the insured bike due to an accident is not covered. The policyholder will have to bear the repair cost himself or herself.
- Accidental damage/ liability/loss happened outside the specified geographical area.
- Damage, liability, loss happened due to invasion, war and other warlike operations.
Comprehensive Two Wheeler Insurance Policy
To protect your two wheeler completely, you will require a comprehensive two wheeler insurance policy. Because it provides complete financial protection against own bike damages and also any third party loss or damages caused due to the insured vehicle.
You don’t have to worry, if your two wheeler gets stolen, as a comprehensive policy also covers bike theft to the limit of the IDV (Insured Declared Value) in the insurance policy. Moreover, the damage caused to your two wheeler, bike, scooter, or moped, in an accident will be borne by the insurance company.
Two Wheeler Comprehensive Insurance Policy
Coverage and Exclusions of Two Wheeler Comprehensive Cover
1) Own Damage
2) Third-party cover
a) Third-party liability cover
b) Third-party property damage cover
c) Personal Accident Cover:
i. Personal Accidental Cover for the owner-rider
ii. Optional (add-on) Pillion Rider Cover
Coverage of Two Wheeler Comprehensive Policy are:
Own Damage: A comprehensive Bike Insurance policy provides financial protection against any damage that may incur due to any man-made or natural calamities.
For instance, if your bike gets burned due to malicious act or gets stolen, you will be compensated under a comprehensive bike insurance policy.
A comprehensive bike insurance policy not only covers bike own damage repair costs but also protects you against third-party liability. With a comprehensive two wheeler insurance, you are compensated for both own damage and third-party losses.
Inclusions of Two-Wheeler Comprehensive Insurance Cover
Under a comprehensive two wheeler insurance policy, your bike is protected, in case if there is any loss or damage as a result of:
- Fire, self-ignition, explosion or lightning
• Earthquake, storm, typhoon, hurricane, flood, tempest, inundation
• Cyclone, hailstorm, frost, landslide, rockslide
• Burglary, theft, riot, strike, malicious act
• Accident by external means, terrorist activity
• Any damage or loss due to transit by rail, road or inland waterway, lift, elevator or air
• Extra Coverage if an add-on is attached to the base comprehensive insurance policy
Exclusions of Two Wheeler Comprehensive Insurance Cover
While a comprehensive two wheeler insurance policy covers damages/losses due to any man-made and natural perils to your vehicle, but there are certain exclusions:
- Any damages incurred when the policy is expired or not active
• Wear and tear of the two-wheeler due to aging
• Any electrical or mechanical fault breakdown
• Riding without a valid or proper license
• Riding under the influence of alcohol, drugs or any intoxicants
• Accident due to involvement in a criminal or illegal activity
• Using private two-wheeler for commercial purposes is not covered
Differences Between Two Wheeler Liability Cover and Comprehensive Two Wheeler Insurance
Let us see an example to understand the difference between a liability cover and comprehensive cover.
Example: Rahul and Nitin bought a new Honda CB Unicorn self-starter 150ccbike in Jan’19. The on-road price in Mumbai is Rs.89,900/-.
Rahul insured bike with only a Third-party cover. Third-party premiums is on the basis of Engine CC. So the premium is Rs.770/-.
While Nitin bought a Comprehensive policy (covers own damage + third party liability cover), which cost him Rs.1900 /-.
In the month of June, both met an accident and it was their fault. And the total repair cost turns out to be Rs.8,000 (approx.).
As Rahul had purchased only third party coverage, the whole repair cost of his two wheeler will have to be borne by him. The insurance company will pay only third party property damage costs. Nothing for any damages incurred on the bike.
Since Nitin had bought a comprehensive policy, the insurance company will pay the repair cost (after deduction for the cost of the depreciable parts) on behalf of him.
|Premium Paid||Rs.770/- (only third-party)||Rs.1,900(Comprehensive)|
|Third-party||Paid by the insurance company||Paid by the insurance company|
|Own- Damage Repair Cost
|Not paid by the insurance company||Paid by the insurance company|
|Total Money Invested||Rs.770 + Rs.8,000||Rs.1,900|
|Net Savings (Rs.)||0/-||More than approx. Rs.5,000|
Total Money paid by Rahul is Rs.8,770, whereas, Nitin paid Rs.1900. On the face value, Rahul saved money on the premiums paid. However, he had to suffer a huge financial loss of money that came along with the bike damage. The total loss borne by Rahul is Rs.8,770.
Note: All the prices are indicative and are subject to change.
The Differences Between Two Wheeler Third Party Liability Cover and Comprehensive
|Coverage||Third Party Policy only||Comprehensive Policy|
|Third Party Liability||✓ Covered||✓ Covered|
|Third Party Property Damage||✓ Covered||✓ Covered|
|Personal Accident Cover||✓ Covered||✓ Covered|
|Own Damage||X Not Covered||✓ Covered|
|Vehicle Theft||X Not Covered||✓ Covered|
(Extra Protection Shield)
|X Cannot be added||✓ Can be added|
What is Add-on Cover in Two Wheeler Insurance?
These are optional add-on paid features that you can avail by paying a little extra premium on your comprehensive two wheeler insurance policy. The add-on cover provides extra protection in addition to your base Bike Insurance policy.
Here’s the list of Two Wheeler Add-on Covers:
Zero Depreciation or Nil Depreciation Add-on Cover
At the time of claim, the insurance companies do not pay the complete repair or replacement cost of your bike’s depreciable parts. Depreciable bike parts such as rubber, plastic, metal are not fully covered. The depreciable cost is deducted at the time of claim repair. And this must be borne by you.
But with the help of two-wheeler comprehensive insurance with zero depreciation add-on cover, you stay covered for those depreciable repair or replacement costs. Because of this add-on cover, the insurance company pays the full amount of repair and/or replacement at the time of claim except for tyre(s) and tube(s).
The damage incurred to the engine is not covered even under the base comprehensive bike insurance policy.
So, the damage to the Engine or Gearbox due to the leakage of lubricating oil, water ingression, clogging can be covered under the Engine Protector add-on.
The insured bike gets covered in case of repair or replacement of crankshaft, pistons, connecting rods, gear shafts in the gearbox, etc.
Compare To Choose The Best Two Wheeler Insurance Online
To get the best Bike Insurance you need to compare the plans offered by top insurance companies. Online Insurance provides you a simple and seamless two wheeler insurance comparison platform. By simply entering your bike’s registered number, you will get quotes from top insurers providing third party and comprehensive two wheeler insurance for your bike.
Below are the steps you should follow to gain awareness about the comparison process before you get into actually doing it.
Step 1: Identify Your Needs
In order to compare two wheeler insurance plans, you must first know exactly what you expect from it. If an insurance policy is providing you with a few more features than the other, but has a much higher premium, you need to analyze exactly how beneficial these features are going to be and whether the higher premium will be worth the additional value you derive from your policy.
Step 2: Decide Your Budget
Budgeting out your insurance coverage will narrow down your search options by filtering out the expensive policies. This way, you will also know the specifications you are eligible for depending on the money you can spend for your vehicle’s security.
Step 3: Find the Right Source of Information
There are multiple websites that allow you to compare information about insurance policies and companies. But how many of them are reliable? It is better to opt for a trustworthy and authorized source like Policybazaar, Coverfox, Turtle Mint, for example, which provides you with accurate and continuously updated data of various two-wheeler insurers.
Step 4: Weigh the Pros and Cons
Sometimes, two policies may seem to suit your needs the same way, but since you can’t buy them all, you need to make a difficult yet worthy decision between them. In such cases, it is better to analyze the pros and cons of each policy so it will help you finalize on one that stands out from the rest.
Step 5: Take Your Time
The most necessary step is to not rush into the procedure. It is better to use the time during the research phase than regret your choice later and not be able to do anything about it. Take your own time before you decide.
Know-How to Compare Two Wheeler Insurance Plans
What exactly should you be looking for when comparing two wheeler insurance plans?
Type of Policy:
There are mainly two types of Bike Insurance plans, which are the Comprehensive and Third-Party Liability policies. While the former covers all types of damage including wear and tear, the latter provides limited coverage for third party damages alone. It is important to understand the difference between these policies when starting your comparison.
Claim Incurred Ratio:
A claim Incurred ratio signifies the percentage of claims that get accepted against the total number of claims that an insurance company receives. For example, if an insurance company has a claim ratio of 67%, it means that 67 claims out of every 100 get approved successfully.
The reputation of the Insurance Company:
The reputation of an insurance company speaks volumes about how convenient and hassle-free your claim process can be. This factor decides a company’s professionalism, the efficiency of its customer service department works, and whether you can rely on their support in your time of need.
No Claim Bonus on Bike Insurance:
If you don’t make a claim in a certain year, you are eligible to get a no claim bonus on your policy that can be carried forward or transferred.
Compare Two Wheeler Insurance Policies Online
When a person compare bike insurance, then he or she should consider certain things like-
- Compare various types of coverage so as to look for the best policy.
2. One should also compare the IDV (Insured Declared Value)
3. Do make sure to compare the premium rate of different organizations.
4. Comparing Add-on cover is a must.
5. One should check at the garage list of the cashless network.
Compare Bike Insurance online so as to look for the best company in less duration of time. Even it helps in saving a lot of amounts because most of the online organizations offer better deals and discounts to save money. Even it is the best way by which a person can get the best plan without going out from home.
Comparing the bike insurance policy is much easy online, as one just has to fill the form. One must provide accurate information to the online organization so that they can suggest better plans for the policy. One should enter the proper details about their bike like the model name and number, the age of the bike, and much more.
So, to fetch the best policy it is essential to choose the online platform so as to save your money and energy.
Reasons to Compare Two Wheeler Insurance Policies Online
Smart saving on premiums: Compare two wheeler insurance quotes from top-notch insurers in India and save money on premiums
Best Suited Customised Policy: Compare to get the best suited two wheeler policy for your bike.
Insured Declared Value: Compare and get ideal Insured Declared Value
Add-on Covers: Compare add-on covers offered by various insurers and gets the ones that will add the most value and enhance your two wheeler insurance coverage.
Cashless Network Garages: Compare and see which insurer has a wide range of cashless garage facility nearby you
Simple Walk-through Guide On How To Compare Two Wheeler Insurance Online
Online companies help You To Compare and choose the best Two Wheeler Insurance for your two-wheeler
Easy Steps to Compare Two Wheeler Insurance Policies Online
- Enter your two wheeler details – Vehicle number, if you don’t know the number then enter the model, make, and a variant of your two wheeler.
2. Enter the registration details of your two wheeler – RTO Location.
3. Declare if your previous two wheeler insurance policy has expired or not.
4. Finally, click on Get Quotes.
Two Wheeler Insurance Premium Calculator Online
The insurance premium is the amount you pay to get the financial protection against the risk of any loss or damages caused to or by your vehicle. The insurance company pays up to the Insured Declared Value of your vehicle in case of claim lodge due to an accident, theft, or third party loss or damages.
To get the right premium you need to enter the basic two-wheeler details such as bike number, or bike make, model, registration center. Once you fill-up the details, policy details and premiums from different insurers will be displayed. Then, you will be able to compare the policies on offer, quotes, features of the policies, inclusions and exclusions.
If you want to buy only liability cover, select only “Only Liability Cover” from the drop-down menu, it will fetch the premium amount. The third-party liability premium is the same for each company as it is decided by the IRDA each year and it changes every year. To calculate the wheeler premium for a comprehensive policy select “Comprehensive” from the drop-down. The two wheeler quotes for comprehensive insurance differ from insurer to insurer.
Use Two Wheeler Insurance Premium Calculator by Online Companies
Two Wheeler Third-party Policy premium: The premium for the third-party liability cover is decided by the Insurance Regulatory and Development Authority of India (IRDAI). The premium is decided on the engine cubic capacity (cc) of the vehicle. IRDAI updates the price every year.
Third-Party policy – Covers any loss or damages to a third-party by the insured vehicle.
Two Wheeler Comprehensive Policy premium: The premium of a comprehensive or package policy differs from insurer to insurer. Since the comprehensive policy provides financial coverage for bike damage or theft, it includes various variables into account to calculate the premium. Own Damage cover premium is calculated as per the Insured Declared Value (IDV) mentioned in the policy. Insured declared value (IDV) takes into account the two wheeler ex-showroom price, age of the bike, place of registration.
Comprehensive Two-wheeler Premium = Own Damage Coverage + Third Party liability coverage
Final Premium = Own Damage Premium + Third-party Premium + Optional Add-on cover charges (if any) + Personal Accident cover (owner-rider) + Optional Pillion Rider cover – (No Claim Bonus + Other Discounts, if any).
Best Tips to Save Money on Two Wheeler Insurance Premium
- Compare Bike insurance plans online
- Opt for a long-term or multi-year Bike Insurance policy
- Opt for voluntary deductibles
- Avail discounts as per the accumulated No Claim Bonus
- Install Anti-theft device
- Buy only necessary add-on covers
- Avoid making claims for minor damages as it will help you to get NCB
List of Top Two Wheeler Insurance Companies in India
|● Bharti AXA Two Wheeler Insurance|
|● Bajaj Allianz Two Wheeler Insurance|
|● HDFC Ergo Two Wheeler Insurance|
|● IFFCO Tokio Two Wheeler Insurance|
|● Kotak Two Wheeler Insurance|
|● New India Assurance Two Wheeler|
|● Oriental Two Wheeler Insurance|
|● Reliance Two Wheeler Insurance|
|● United India Two Wheeler Insurance|
|● Universal Sompo Two Wheeler Insurance|
Hassle-free Renewal of Two Wheeler Insurance Online
It is advisable to always renew two wheeler insurance on time or before the current insurance cover lapses. This gives you enough time to compare the available insurance policy renewal options in a bid to determine your ideal two wheeler insurance cover. You can get the best and detailed two wheeler insurance renewal quotes on the online insurance portal by simply entering the vehicle details and responding to some questions. You are then offered a list of credible Bike Insurance policies to select from. From this point, there are two ways of renewing your Bike Insurance; contacting the insurance provider you choose (offline renewal) or making an online renewal.
Online Bike Insurance Renewal
After choosing the ideal two wheeler insurance policy, you visit the insurance provider’s website and choose to renew your policy online. However, some online third-party platforms allow you to renew Bike Insurance via their websites. You make premium payments online via credit, debit, or net banking. Online renewal is faster since your renewed policy is activated instantly. You receive a soft copy of your two wheeler insurance policy immediately on your registered email address. Nonetheless, your insurance policy is deemed fully active a few days after the initial payment.
Important things to remember before Renewing your Bike Insurance
Decide before Expiry of current insurance policy
Insurance experts recommend making a two wheeler insurance renewal decision at least 45 days before the current policy expires. This gives you enough time to compare renewal offers as well as utilise your accumulated insurance benefits.
Check Insured Declared Value Offered
As you put in your two wheeler details, quotes from different insurance companies will be displayed to you. Before renewal, do check and compare the Insure Declared Value (IDV) offered by various insurers.
Know your add-ons
Select add-ons that are best suited to your needs and include them in your policy. They might seem as an added expense, but they enhance the policy benefits!
Re-examine your Current Cover
As you renew your two wheeler insurance, you can choose to change some policy details or insured areas that you deem unnecessary. This may include insurance benefits that you did not use yet they increase your premium. Hence, you can request for a lower cover where you pay for the insurance services you require.
Correct the Information if required
If you changed your address or city, remember to change the information to avoid discrepancies and miscommunication. You may have to submit proof documents before the insurance provider agrees to change the information.
Before paying the premium, it is advisable to ensure all the vehicle details and about the vehicle, owner are entered correctly.
Easy Access to All the Renewal Plans Online
The internet of things has changed how business is carried out. As such, renewing your two wheeler insurance online is possible and highly-effective. Online companies offer detailed information about the different two-wheeler renewal plans as well as how to renew your insurance plan online.
If you want to change your insurance provider, you simply go through the information to find the ideal two wheeler insurance provider and contact them. Online Bike Insurance renewal plans offer timely due date notifications, eliminate problems associated with delayed premium payments and are less hectic.
However, the guidelines on how to renew two wheeler insurance online may vary from one insurance provider to another. Therefore, it is advisable to cross-check with your two wheeler insurance provider about their online policy renewal process.
Benefits of Renewing Bike Insurance Online
Having a two wheeler insurance policy is a great way of taking care of the financial loss you could suffer in case of damages incurred to or by your bike, which you would otherwise have to pay from your own pocket.
Renew your Two Wheeler Insurance Online:
- No Inspection of your Bike is needed to renew the policy
- Requires No Paperwork
- Never lose your insurance policy, a soft copy of your insurance policy is always in your inbox
- Get complete support at the time of claims
- Get easy access to the nearest network garage by knowing the list of Cashless Claim Garage Network of your chosen two wheeler insurance company
How to Renew Bike Insurance Online Instantly?
If Your Policy Is Active or Expired
Forgetting the renewal date is just human! Having so many things in mind, it’s easy to slip through the mind, the renewal due date.
Do not worry. Or fret. With online customer support, you can simply renew the expired two wheeler insurance policy.
Here’s what you get when you renew expired Bike Insurance policy online:
- No inspection – Without inspection and documentation, companies help you to renew your two-wheeler expired policy.
- No extra or hidden costs – With online renewing insurance policy is very easy and there are no hidden charges involved.
- Instant – You will receive the policy within minutes. Instantly.
- The best part – As said, no documentation, you don’t have to provide previous policy details if the policy has expired for more than 90 days.
How to Buy Bike Insurance Online
Buy Multi-Year Two Wheeler Insurance Plan
Generally, Bike Insurance plans are designed for one year and have to be renewed annually. However, a multi-year Bike Insurance policy is unique. This policy allows two-wheelers owners to be insured up to 3 years consecutively at one time and with one single policy.
Policyholders don’t have to take the hassle of renewing the insurance contract each year or face consequences of forgetting to renew
Benefits of Multi-year Two Wheeler Insurance Plan
Long-term policy for long run riders
Huge Savings Upfront on the premium
IRDA updates the third-party liability portion of the premium and the premium can be hiked up to 20% each year. Multiyear insurance saves you against the inflation of third-party premium and service tax.
ELIMINATES YEARLY RENEWAL
When you buy a long-term or multi-year two wheeler insurance policy, you avoid every year’s renewal procedure for 3 years.
PROTECTION FOR LONG-TERM
Ride safely and happily by enjoying the long-term financial protection of your vehicle for three years. Also, you get a single policy document that is valid for 3 years.
EASY CANCELLATION OF POLICY
It is as easy as in the case of a single year policy. In a single year plan, if you make a claim in case of theft/loss, you are not eligible for the refund of premiums. However, in the case of a multi-year policy, if the policyholder makes a cancellation in the first year, he can get a refund of second and third year premiums.
BIG DISCOUNTS OFFERED
Most of the insurance companies offer discounts on their own damage premium to the policyholder with a multi-year Bike Insurance policy. You can save on your own damage premiums too.
PROTECT ACCUMULATED NO-CLAIM BONUS
If you are eligible for 25% NCB, it’s applied on the premium of all 3 years. In a single year policy, you lose the 25% with one year claim. But, in a multi-year policy, 25% is locked for you.
Single year vs Multi-year Two Wheeler Insurance Plan
Which is better for your bike: Single year or Multi-year two wheeler insurance plan?
Single year two wheeler insurance should be purchased only if you are planning to sell your bike in the recent future. This way you can save premium on bike insurance as you will be selling your bike. But if you are planning to use the bike for the long term then hands down multiyear insurance is beneficial.
The IRDAI has made it compulsory for two wheeler sellers to issue 5 year bike insurance for all two wheelers. Below are some of the advantages of long term two wheeler insurance policy.
Advantages of a Long Term Bike Insurance Policy
As per experts, it is cumbersome to keep track of annual renewal dates of policies, particularly when someone owns more than one policy. Therefore, the hassle of renewing the policy every year is done and dusted. Further, even if one remembers the renewal date, he/she might get busy in one chore or another or due to lack of time and fail to renew the policy.
AVOID NON-RENEWAL RELATED RISKS
The insured is also exposed to certain risks in case of non-renewal of an insurance policy or by the time the policy is not renewed. For example, cases where the vehicle meets with an accident or is stolen when the policy is not exercisable, the vehicle owner would have to bear the entire financial loss himself/herself.
However, this can be easily avoided for three years at a stretch by buying a long-term Bike Insurance policy.
AVOID PROBLEMS OF RENEWING LAPSED POLICIES
In case the policy lapses, some insurance companies insist on getting the vehicle inspected to determine its condition prior to renewing the policy. Buying a long-term two wheeler policy aids in preventing such a situation because the policy does not need to be renewed for two or three years depending on the tenure of the policy.
DISCOUNT ON OWN DAMAGE PREMIUM
Now, insurance companies are willing to offer discounts for the Own Damage (OD) part of the policy premium for long term insurance policies. Long term policies help the insurers to cut down on additional costs and these savings are in turn, passed on to the customer in the form of discounts.
PREMIUM RATE FROZEN
Long-term insurance also saves one from the yearly inflation in third party premium rates. The third-party premium rates are normally hiked to 10-20% per annum on an average by the insurance regulator (IRDAI).
In addition to this, the insurance companies also hike the premiums based on the number of claims received per year, policy coverage and other similar factors. Own Damage premium rates are also revised by the insurance companies from time to time.
THE NO-CLAIM BONUS ADVANTAGE
In the case of some insurers, long-term two-wheeler policies score over the existing one-year policies in case of NCB (no claim bonus) as well. For eg; a person buying a long term two wheeler insurance for the first time from a given company will avail the discount he/she earned from their previous policy.
GET POLICY DOCUMENT INSTANTLY WITH ZERO DOCUMENTATION
One does not need to do tons of paperwork to buy long-term insurance. They can easily buy the policy online and receive the policy document instantly. All they need to do is to give their personal and bike details, choose the coverage they want, calculate the premium and proceed to make the payments.
WHAT TO DO IF A LONG TERM POLICY IS TERMINATED OR CANCELED?
In the case of both single year and long term policies, the claim amount would be payable as per the policy coverage any time during the policy tenure and it will not be ceased post disbursing the claim amount.
Termination of long term policy can take place only in cases of total loss/theft of two-wheeler where the IDV equivalent amount claim is given to the policyholder.
Two Wheeler Insurance Claim Process
There are two types of claims in two wheeler insurance – Cashless claims and Reimbursement claims.
If you take your two wheeler to any of these network garages, then you need not make any payment to the garage. The payment is taken care of directly by the insurance company. These claims are called cashless claims.
In case due for any reason you cannot take your vehicle to a network garage, then you need to make the payment out of your pocket and then make a reimbursement claim to the insurance company.
Procedure for Cashless Two Wheeler Insurance Claims:
- If you meet with an accident that involves another vehicle or person, then note down their names, contact details, and the number of the vehicle.
- The next thing to do is contact the insurance company on their claims report phone number or email them and you will be contacted by the call center representative. The call center representative will direct you to the nearest network garage and give you a claim number.
This is the reference number you will need to use for any queries regarding this claim. The representative will also inform you about all the documents required to process the claim.
- If it is a major accident or results in any bodily harm or damage to a third party, or loss or theft is involved, then you need to file an FIR at the police station nearest to the area of the incident.
- Once this is done, you can take your vehicle to the network garage that was suggested to you by the call center representative.
- Within 24 to 48 hours of the claim being registered, you will be contacted by a surveyor or a customer relationship manager (CRM) for Bike Insurance from the insurance company. The CRM will verify all your documents, get an estimate of the amount required for the repairs of the vehicle, and then give approval based on their assessment.
- All the payments that should be made by the insurer will be made directly to the network garage. There will be a small amount you will need to pay as per the terms and conditions of your insurance policy. You can make this payment to the garage.
Procedure for Reimbursement Two Wheeler Insurance Claims:
- If you are unable to visit the network garage and you get the repairs done from another garage, your claim amount will be paid directly to you.
- Follow the first three steps mentioned above for registering your claim and filing an FIR.
• The CRM will contact you within 24 hours of registering the claim, inspect the damages, and reach an estimate for the repairs. The CRM may also take photographs of the damages for proof.
- You can then take your vehicle to your preferred garage and ask them to do the repair works. The CRM will need to verify the repairs once they are done.
- You can pay the garage for the repairs and get a proof of release document from them. You need to submit this document along with the original bill and cash receipt to the CRM.
- The CRM will then verify all the documents and submit it to the insurance company’s claim processing department for claim settlement.
- Once the documents are received by the insurer, the claim process will be initiated and the claim amount for the Bike Insurance from the insurance company will be paid directly to you within 7 to 10 working days from the date of receipt of the documents.
Note – The above is a general procedure and it can vary from company to company.
GST on Motor Insurance Policy
The GST was implemented by the government to centralize the tax imposition in the country. The two wheeler insurance has been categorized under general insurance class in GST. Due to this, a GST of 18% is levied on Bike Insurance.
This means there is a hike of 3% with regards to tax on bike insurance. This has made Bike Insurance slightly more expensive than the previous tax rules.
Documents Required to renew two wheeler insurance online
- Identity proof of the owner of the bike
• Address proof as mentioned on the ID
• 2 or 3 passport size photos.
• Registration details of the two-wheeler
• Owner personal details
• Old policy number
• Bank or card payment details for online payment.
Bundled Policy Details
As per the IRDAI circular, with the introduction of long-term Motor Third Party Insurance, an insurance applicant (two wheeler owner) should be given two options—Long-term package cover offering both two wheeler Third Party insurance and Own Damage Cover insurance for 3 years or 5 years as the case may be or a bundled cover with a 3 or 5 year term for the Third Party component and a 1 year term for the own damage cover. This means that the bike owner can attach Own damage cover on annual basis with the long term third party cover policy.
Endorsements in your Two Wheeler Insurance
Endorsement is basically change in the insurance policy by the insurance company on request of the policy holder. The endorsement in the policy mean there will be amendments or updating of the existing policy.
The endorsement can be due to modification of the vehicle, change of coverage, owner change etc. Endorsement also helps the insurer to retain the customer from porting to another insurer and prevent losing a customer.
Types of Endorsement in Two Wheeler Insurance
An endorsement can be due to various reasons. To know more about endorsement policies for two wheeler insurance, take a look at the list of modifications which can be incorporated in the policy, as mentioned below:
- owner/policy holder’s address
• owner/policy holder’s name
• owner/policy holder’s email id or mobile number or both
• registration number
• engine number
• model and built
• Increasing voluntary deductible
• Modification in the two-wheeler’s Insured Declared Value (IDV)
• Corrections of No Claim Bonus (NCB)
• Transfer of ownership of the two-wheeler/bike
How to Make an Endorsement
It is very easy nowadays to make an endorsement in the Bike Insurance policy. All the policyholder has to do is to contact the insurance company via phone, email, letter etc and inform about the changes to be made.
The insurance company will analyze the request and if feasible will ask for the necessary documentation. After submission of the required documents, the insurance company will verify the documents submitted and approve the request. Once the changes are made the updated policy will be issued to the policyholder.