Two Wheeler Insurance
Insurance Regulatory and Development Authority of India (IRDAI)?
The Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous, statutory body tasked with regulating and promoting the insurance and re-insurance industries in India. This is statutory body set up for protecting the interests of the policyholders and regulating, promoting and ensuring orderly growth of the insurance industry in India.
Motor insurance act:
As per India rules, under the provisions of the motor vehicles act, 1988, it is mandatory that every vehicle should have a valid insurance to drive on the road. This act was applicable on 1 July 1989. It replaced motor vehicles act, 1939 which earlier replaced the first such enactment motor vehicles act, 1914. Third party insurance is mandatory because this policy does not provide any benefit to you however it covers the damages of other person met with an accident with our vehicle. It provides detailed provision on licensing of the drivers and conductors, registration of motor vehicles, the provision on controlling their permits, traffic regulation, related insurance, liabilities, and penalties.
Why we need Two-Wheeler Insurance?
- Financial protection to your two-wheeler from damages at the time of the accident.
- Cover against rider due to accident
- Financial protection arising out of injuries or damages caused to other parties in an accident.
- It saves your Two-wheeler from financial losses arising due to natural disaster.
Types of two-wheeler insurance in India:
Third party insurance and comprehensive insurance
Third Party Insurance – It means the type of policy that covers losses of the other person met with an accident with our vehicle. In third party, policy holder doesn’t get any claim for his own vehicle but the losses of other person vehicle will be reimbursed by the insurance company. In case of two-wheeler insurance settlement amount will be decided by special courts. Maximum claim amount is Rs.1,00,000. Third party insurance is mandatory in India. As it is mandatory in India so it is very inexpensive, so that everyone can afford it. Basically, this insurance covers other party damages or injuries due to accident.
Comprehensive Insurance – It means that type of policy offers complete protection against the damages due to an accident. Comprehensive policy provides coverage for the damages, third-party legal liability, theft, along with the personal accident coverage. The comprehensive insurance policy has some capping i.e. 40 % in rubber, 50% in plastic and so on, but to avoid this capping, there is zero depreciation insurance. This insurance policy offers 100% coverage for all fibre, rubber and metal parts without capping. zero depreciation will add nominal amount in your premium.
Benefits of two-wheeler insurance
1.Financial Protection
Third Party Insurance policy holder doesn’t get any benefit or claim for his own vehicle but insurance company covers losses of the other person met with an accident with policy holder. Comprehensive Insurance policy provides coverage for the damages, third-party legal liability, theft. This comprehensive insurance policy has some capping and some additional benefits like zero depreciation add-on, personal accident cover etc.
2.Fire Cover
All fire damages are covered by insurance company. It is very scary situation at the time of fire in vehicle and a lot of damages will be there if but you have policy, all the damages cost is covered by insurance company.
3. No Penalties or Challan
In India, traffic police impose heavy fines and punishments if you don’t have insurance that’s way two-wheeler insurance is an important document for avoiding fines or challan.
4.Theft Cover
If your two-wheeler has been stolen by thief you have to inform the insurance company to get the claim of your vehicle, this condition is only applicable in comprehensive insurance policy.
5.Personal Accident Coverage
Personal accident cover provides you financial support in case you suffer from injury or in case of death. Insurance provides you protection against the risk that can be caused by road accidents. Currently personal accident cover is of 15 lakhs.
6.Damages Cover Caused by a Natural Disaster
Natural disasters like flood, fire, earthquakes, storms, hurricanes, and others can affects your vehicle. It can be a huge loss if it gets damaged in natural disasters. All the damages cost is covered by insurance company.
7.Online Renewal
Online renewal of your Two-Wheeler is very simple and hassle free. All company haves there on renewal process and different steps for renewal.
8.Peace of Mind
The best solution to full fill the repairing costs that may arise due to the damages caused by an accident or natural disaster. You are free from a sudden financial crunch and free from penalties or challan taken by Indian traffic police. In such a way it given you peace of mind.
Steps for online renewal of two-wheeler insurance:
1. Visit the company website according to the policy you have.
2. Enter the vehicle details and policy no.
3. If you want some add-on covers click that and check the additional premium
4. Check your renewal premium and click on the summit button.
5. Make the payment and receive the policy on email.
Things to check before buying two-wheeler insurance
1. Claim Settlement Ratio
Customer service and after sales support are important factor to consider before buying a policy. Choose that insurance company that has higher claim settlement ratio because that company will settle your claims at high priority.
2. Coverage
Choose the right insurance policy that suits your requirements and needs. How much coverage they are giving and which types of additional benefits they are giving. It means the basic covers they provide.
3. Price
Pick the right insurance policy that suits you and your budget. Primary plan of all companies is same. Based on company name, premium varies.
4. Exclusions
Important to know what are not covered in your insurance policy. Because you claim can be rejected if it falls under an exclusions list.
5. Network of Garages
Under the network garage you will get cashless repairing services means you don’t have to spend any amount on your repairs.
6. No claim bonus
It is a bonus given under comprehensive policy on OD (on damage) premium. This discount is given if your last policy is not expired and you have not taken any claim under the last policy. Range of no claim bonus can go up to 60%.
7. IDV
IDV is insured declared value. Is the value declared by the policy holder while buying or renewing the policy. Based on the rules, the IDV is decreased by 10% every year.
Inclusions and exclusions in two-wheeler insurance
Inclusions
- cover the cost of all damages that occur at the time of accident.
- The fixing costs that may arise due to the damages caused by natural disaster
- Insurance company gives additional benefits like personal accident cover of Rs.15 lakhs.
- Insurance company cover-ups the damage of riots, strikes, fire, and terrorism are covered.
- Theft cover when your two-wheeler is stolen, the insurance company will pay expenses according your IDV at the time of claim.
Exclusions
- Loss and damages that may be arise because of a war or a nuclear strike.
- Your regular mechanical expenses due to consistent wear and tear like headlight damage, horn damage, tyre puncher, etc.
- If your two-wheeler is involved in an illegal activity you will not get any claim.
- If you don’t have valid licence you will not get claim.
- In the impact of alcohol or drugs accident will occurred you don’t get any claim.
What is personal accident insurance in two-wheeler insurance?
Personal accident cover means compensation for accidental death and injuries that happens at the time of accident to the policy holder or rider. Personal accident insurance is very important in two-wheeler because most of the persons in India are riding two-wheeler and riding a tow wheeler is quite risky. It will add some extra premium will add on to your premium. This facility is available in comprehensive plan only. This is oppositional feature you can add in to your policy for financial support to your family.
How can I get claim in two-wheeler insurance?
It’s Smooth and hassle-free. Two-wheeler insurance claims processes simple and efficient. All settlement is cashless or reimburse.
These are some simple process for claim process:
1. Register Your Claim
2. Call at company at your location
3. Send your vehicle for repairs
4. Submit your documents
5. Get your claim settled
How to calculate the cost of two-wheeler insurance?
Insurance premium is based on various factors like
- Including vehicle age location
- Make & model of the bike
- Choice of coverage
- Driving history and claim history
1st and 3rd party insurance in two-wheeler insurance?
- 1st party insurance means that insurance insured person is paying by his or her insurance.
- 3rd party insurance means that insurance covers losses of the other person met with an accident, injure, losses with our vehicle.
What is IDV in two-wheeler insurance?
Insured Declared Value (IDV) means that fixed rate of the two-wheeler that is provided on theft or total loss of two-wheeler at the time of accident. That rate is full fill by the insurance company. The direct meaning of IDV is current market value of your two-wheeler. In case of your two-wheeler it is total loss at the time of accident or your two-wheeler is stolen by theft according to IDV the insurance company give compensation to the policy holder. This is valid if you have comprehensive or zero dep insurance. At the time of renewal, you IDV will be deprecated by 10% i.e. if your IDV is 2,10,000 than at the time of renewal it will be 1,89,000 (2,10,000 – 10% (21,000) =1,89,000).
What do you mean by NCB (No Claim Bonus) in two-wheeler insurance?
No Claim Bonus (NCB) means that insurance company is offering discount to the policyholder on their two-wheeler insurance policy’s premium. All insurance company offer the same NCB. This discount can reach a maximum of 60%. It is given you have not taken any claim & renewal or port your policy without expiring.
For Example,
| Year | Discount % |
|---|---|
| 1st Year | 20% |
| 2nd Year | 25% |
| 3rd Year | 35% |
| 4th Year | 45% |
| 5th Year | 50% |
Top Two-Wheeler Insurance Companies in India
- Bajaj Allianz
- ICICI Lombard
- HDFC Ergo
- TATA AIG
- New India Assurance
- Company
- Reliance General
- SBI General Insurance
- National Insurance
- Company
- IFFCO Tokio Insurance Company
Is it mandatory to have two-wheeler insurance?
Yes, according to Indian law two-wheeler insurance policy is mandatory as per the Motor Vehicles Act, 1988. Third-party insurance is mandatory because it covers the damage, loss, injure of other person that met with our vehicle at the time of accident and Third-party insurance is cheap that every person can afford that.
Tips to help you buy the correct two-wheeler insurance policy
IRDAI-Approved Insurers:
IRDAI-approved insurer and check the insurer’s claim settlement ratio of the company. After sales services record of the company.
Comparisons
Compare all company plans they offer and choose the one best suited to your specific requirements and budget.
Insurance types:
Which kind of insurance you select comprehensive insurance policy or a third-party cover.
Optimal Add-On Covers:
You must know about the benefits of each add-on covers and their additional premium.
Sum insured (IDV):
Company propositions the right sum insured that you are fully covered against all losses or damages as appropriate under the policy.
How to I compare two-wheeler insurance?
- Compare type of Coverage given by insurance company like
- Third Party Liability or Comprehensive
- Compare Insured Declared Value (IDV)
- Compare Premium
- Compare Add-on Covers
- Compare cashless network garage list