Two Wheeler Insurance

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TWO-WHEELER INSURANCE DEMYSTIFIED

Before deciding on your two-wheeler insurance policy, it is important to take a close look at the coverage offered. Insurance coverage varies from company to company and is also based on the type of insurance plan one has opted for. Details related to these are mentioned in every insurance policy. You can obtain this information by reading through the annexure of the policy document. By reading through the policy document carefully, you will get a better understanding of whether the policy in question provides your money’s worth and will save you from any last-minute surprises.

Inclusions* in bike insurance:

Personal Accident Cover: The insurance covers expenses related to cost of treatment of injuries sustained from accident – i.e. the insurer compensates you (the driver/owner) if you are injured in a bike accident.

Natural Calamities: Your two-wheeler is covered for damages resulting from natural calamities such as earthquakes, floods, fire, cyclones, etc.

Man-Made Events: Damages caused to your bike resulting from incidents such as riots, in-transit damage, and loss due to theft are covered. In case of loss due to your two-wheeler being stolen, the insurer will pay an amount equal to the vehicle’s Insured’s Declared Value (IDV).

Third-party Liability: The insurer covers damages caused to third-party vehicle, or property in the event of an accident.

*Inclusions vary depending on whether you have opted for a third-party liability cover or a comprehensive cover. Therefore, inclusions available for your two-wheeler insurance will depend on the type of insurance policy you have subscribed to and the policies of the insurer.

There are many reasons your bike could be damaged other than due to an accident. Insurers do not settle claims in such instances. Your two-wheeler is not covered for:

  • Damages caused to the bike or third-party if you are found driving under the influence of alcohol, hallucinogens, or other banned substances.
  • Damages caused to bike if the owner is found to be riding without a valid driver’s license.
  • Damages caused to the two-wheeler from natural wear and tear.
  • Loss incurred due to electrical and mechanical breakdown.
  • Write-down by way of depreciation.
  • Damages or loss caused due to war or nuclear attacks.

In the case of two-wheeler insurance, a No Claim Bonus (NCB) is a reward for being a safe rider and for not making a claim in the preceding year/s. If you have not claimed insurance for damages to your bike and if there is no third-party liability, then you are eligible for a No Claim Bonus in the subsequent year at the time of renewal. If you have not claimed insurance for a period beyond one year, you are eligible for a higher discount – of course subject to the policy of the insurer. Typically, No Claim Bonus is applied in the range of 20 – 50%.

No Claim Bonus can be carried forward provided your policy is renewed within 90 days of the date of policy expiry. Also, many insurers offer a convenient feature where the No Claim Bonus you have earned can be transferred from one vehicle to another. This is applicable only to vehicles owned by you and cannot be applied to a policyholder other than you. Also, it may be noted that the vehicle type is required to be in the same category. In other words, if you have earned a No Claim Bonus for your two-wheeler of brand A, you can transfer this to another two-wheeler registered in your name. The bonus, however, cannot be applied to a car or any other vehicle-type.

It is to be borne in mind that insurers may, at their sole discretion, alter the terms and conditions governing a NCB clause. NCB is not guaranteed to a policyholder and NCB related discounts might not be applied if market conditions are not favourable.

Buying insurance online is quick, simple and hassle-free. There are several advantages of buying your two-wheeler insurance online. These include:

  • While offline insurance renewal can be cumbersome, you can get your two-wheeler insurance renewed without inspection and documentation.
  • Some insurers provide discounts to customers that purchase insurance online – This is because they accrue cost-savings by eliminating traditional distribution channels and pass-on the same to customers.
  • You don’t have to pay extra charges while purchasing insurance online.
  • Policy issuance is quick.
  • A fundamental benefit of purchasing insurance online is that you can compare plans from leading providers and choose the plan that best fits your pocket and requirements.
  • You can pick from multiple payment options including credit card, debit card, net banking, etc.

FAQs

Should I insure my two-wheeler?

Bike insurance is not just mandatory per law, it is also your cushion against unforeseen expenses resulting from accident, theft, natural calamities, etc. It minimizes your financial burden resulting from litigation and damages claimed by third parties. As a two-wheeler owner, you are responsible not just for the safety of yourself, but also your pillion rider, your fellow rider, pedestrians and public property. Insurance helps you ride stress-free knowing that the policy coverage helps minimize your financial burden if an unfortunate incident of accident, theft, or other such incident occurs. As per the Indian Motor Vehicles Act, a third-party insurance is mandatory for every vehicle owner regardless of the make and model of the two-wheeler.

Will I be penalised for uninsured two-wheeler?

As per Section 197 of the Indian Motor Vehicles Act, 1988, riding without insurance can lead to a penalty of up to rupees two thousand or imprisonment of up to three months or both.

How can I get the best two-wheeler insurance plan?

There are many bike insurance plans available in the market. You will notice that the pricing varies from one plan to the other. If you are wondering why is there a difference in the prices, it is because of the features and benefits offered. In order to choose a two-wheeler insurance that is right for you, you should determine answers to a few simple questions such as the value of your two-wheeler. If you own an expensive bike, it is better to go for a comprehensive cover (preferably with a zero-depreciation added-on). The age of the two-wheeler, the road conditions, servicing charges, etc., are some of the other factors that you must consider. Some insurers provide special discounts to members of certain associations. So, you might want to find out if the insurance policy you wish to purchase has any such discounts or offers. Two-wheeler insurance plans also provide add-on features that you can use to further cushion yourself against losses. In order to choose the best insurance plan, it is advisable to compare plans and select the one that best fits your purse and specific requirements.

What is the difference between Cashless Claim and Reimbursement claim?

Cashless Claim: Here, the repair charges are settled with the garage/service centre directly by the insurer – subject to the service centre being a part of the insurer’s network.

Reimbursement Claim: This is a non-cashless claim where you get your two-wheeler repaired at a garage outside the insurer’s network. In such cases, you pay the charges to the service centre out of your pocket and claim reimbursement from the insurance company upon submitting the original bills to the insurer.

Can I claim an advance towards repairing my bike?

If your two-wheeler is being repaired in a garage within the insurer’s garage network, and if your policy is “in-force” (i.e. it is currently valid) and if you are in compliance with all other requirements of your insurer, then you can go for a cashless claim – wherein the insurer pays the bill directly to the garage. In the event, the bike is repaired in a garage not falling within the insurer’s network, then you will have to bear the expenses upfront and the insurer will reimburse your claim upon furnishing all documents as requested to the insurer’s satisfaction.

Can I Renew my Two-Wheeler insurance policy online?

You can renew your two-wheeler insurance policy online – just like you have the flexibility to purchase one online. However, you will have to renew the policy 60 days prior to the policy expiry date.

What is ARAI?

Automotive Research Association of India (ARAI) is a co-operative industrial research body associated with the Ministry of Industries. The Association is formed with the objective of research and development in automotive engineering. If you have installed an ARAI approved anti-theft device in your vehicle (and if the device is duly certified by ARAI), you can avail a discount of 2.5% on Own-Damage premium.

What is Long Term Two-Wheeler Insurance (LTTW)?

As the name indicates, a Long-Term Two-Wheeler Insurance is a long-term product. The insurance regulator, IRDAI, has introduced this insurance product for two-wheelers. An LTTW is hassle-free and can be purchased and renewed online just like a regular one-year two-wheeler insurance. On purchase, the policy is valid for three years. Another advantage of opting for a Long-term insurance is that you can lock-in to the policy at current rates. Thereby resulting in cost-savings from premium upward revision in the subsequent years.

What is an endorsement?

At times, your policy document might not bear information that is accurate which necessitates a change request. An endorsement is a written evidence of a proposed change to a policy. An endorsement can be of two types: Premium bearing and Non-Premium bearing.

What is a Premium bearing endorsement?

A premium bearing endorsement is a change that impacts the policy premium. For instance, if there is a change to your RTO location there could be an increase or decrease in premium depending on the location (your bike premium varies based on the location of registration).

What is a Non-Premium bearing endorsement?

A non-premium bearing endorsement is a change effected to the policy document that has no impact on the premium paid. For instance, change/edit in contact details, engine/chassis number, etc.

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