For many people in India, a two wheeler is an important mode of transport. But in order to use it on the road, it is mandatory to get a two wheeler insurance policy, especially a third party coverage, if not more.
What is Two Wheeler Insurance?
An accident or a theft of a two wheeler could lead to financial stress because of the need for repairs, hospitalisation, treatment or a new vehicle. Thus, a two wheeler insurance policy provides financial coverage to the policyholder in times of need like accidents, thefts or repairs.
Types of Two Wheeler Insurance
There are basically two types of two wheeler insurance policies available in the Indian market. These are:
Third-Party Insurance: This type of insurance is also termed as limited liability insurance and is compulsory for every two wheeler owner. It covers the policyholder against legal liabilities arising out of bodily injury/death or property damage done to
a third party (accidental).
Comprehensive Insurance: This type of insurance is also termed as package policy. It covers third-party liability as well as damage caused to the insured vehicle, and death/disability of the owner/driver due to the accident.
What all Two Wheeler Insurance Covers?
A two wheeler insurance plan shall come to your financial aid in cases such as:
- Damage caused to the vehicle, the owner and the driver due to accidents
- Personal accident coverage for owner and driver
- Damage occurred due to natural disasters
- Damage induced due to man-made disasters
- Third-party liabilities
- Loss or theft of the two wheeler
All vehicle insurance plans come with add-on covers in addition to the standard benefits offered. Following are the add-on covers that you must buy along with your two wheeler insurance:
Personal Accident Cover: By buying this cover, you get insured against death or permanent disability due to the accident. This add-on cover is not altered by the person who drove the vehicle when the accident took place.
Zero Depreciation Cover: This is the most important add-on cover that you must buy while finalising your bike insurance. With this add-on cover, your vehicle gets the original value, without deducting depreciation, in case it is lost or damaged.
In order to get the two-wheeler insurance, a person must be:
- 18 years or above
- Citizen of India
- Should possess a driving license
- Should have registration certificate of the vehicle
How to Apply for Two Wheeler Insurance
A person who has got the legal permission to drive a two wheeler in India can apply for a two-wheeler insurance policy, provided the individual have a valid driving license. One can apply for vehicle insurance in India via online or offline mode and below are the ways to do it:
- Compare the benefits offered by many insurance providers in India
- Visit the official website of the chosen Insurance company and check the claim ratio
- If you are choosing an online aggregator, you will get variable quotes from different insurance providers
- Use the online two-wheeler insurance calculator to compare the premiums from different insurance companies
- After providing few personal details, you can click on the online apply-button, and process of your application is complete
- To buy an insurance policy offline, you need to find an insurance agent or the insurance company you wish to invest in
- Fill up the relevant forms given to on the basis of your requirements
- If you directly approach the insurance company, you can avoid the additional fee charged by the agents. Some banks and third-party dealers can also help you in completing the application process
- After submitting a few necessary documents (if any) according to the company norms, your application will be completed
Two Wheeler Insurance Claim Process
- In case of any untoward incident like accident or theft, immediately inform the insurance provider
- If the two-wheeler was involved in an accident or was stolen, file an FIR and produce its copy to the company
- Then, you can then apply for registration of the claim by producing related documents like claim form, a copy of the registration of the vehicle (RC) and others
For smooth and timely claim settlement process, get the case registered as soon as possible, produce the relevant documents on time and don’t hide any details from the insurance company.
- One can also get a cashless claim if the vehicle is repaired in any of the network garages of the insurer
- Payment will be done after an evaluation of your damage and cost of the repair
- In case the policyholder takes his vehicle to the garage not covered under the network, he would have to pay for the claim which can later be reimbursed from the insurance company
Documents Required For Claim Process
In case of an accident or damage done to you, your car or to the third party, intimation to the insurance company is important. Along with that, following are the essential documents to be submitted:
- Duly filled claim form
- Copy of the insurance policy document
- Copy of the driving license of the person driving the vehicle at the time of accident
- FIR, in case of third party damage, death, bodily injury
- All the sets of keys, service booklets and warrant card in case of theft
- Repair bills and payment after the repair is done
How Long Does it Take to Settle Claims?
An insurance company can take somewhere around 10-30 days for claim settlement. Motor Insurance provider companies have two options to settle the claim.
One is cashless option where the company pays for the repairs done at one of the network garages while the other is reimbursement where the claim is settled if the insured repairs his vehicle in the garage which does not come under the network of the insurance company.
Exclusions under Two Wheeler Insurance
Below are some factors that can lead to rejection of a two-wheeler insurance claim. These are also called exclusions.
- Regular wear and tear
- Driving under the influence of drugs or alcohol
- Driving without license
- Underage driving
- Using commercial vehicles for private purpose or vice versa
- Staged crash
- Expired policy
- Electrical/mechanical breakdown
- Crossing geographical limits
- Damage or loss due to war
- Consequential damage
Companies Offering Two Wheeler Insurance in India
Some of the insurance companies providing two wheeler insurance in India are as follows:
- Bajaj Allianz
- Universal Sompo
- ICICI Lombard
- TATA AIG
- National Insurance
- IFFCO Tokio
- Bharti AXA
Renewal of two wheeler insurance takes only a few simple steps, viz.:
- Check if your insurance provider offers online renewal option
- Go to their official website (desktop or mobile)
- Log in using the credentials provided to you at the time of purchasing the policy
- Enter the policy number and other details asked
- Click to get the quote for renewal premium
- Pay the premium using any of the modes provided by the insurer
- Your policy will be renewed till the next due date
Important points for renewal:
- To renew your two wheeler insurance policy, you should keep a track of the due date as renewal needs to be done before the due date
- If the renewal is delayed even for a single day, i.e. after one day post the due date, your bike/scooter will need inspection by the insurer
- For a package policy, if renewal is kept at bay for more than 90 days, accrued benefit of No Claim Bonus (NCB) will be nullified
- Always make sure to compare the bike insurance plans online so that you can avail the best insurance plan suited for your needs
- Every vehicle insurance company makes a certain amount mandatory for you to pay for the expenses caused due to mishaps. This mandatory amount is known as compulsory deductible (~500 rupees). If you choose to pay some more money as a voluntary deductible, there will be a decrease in the premium you pay for your motorbike insurance
- Always follow all the safety measures while driving and opt for discounts from accumulated no claim bonus (NCB) on your next renewal
- Get anti-theft devices fit in your two-wheeler as it will further lower premium
- Old two-wheelers get low IDV (Insured Declared Value) due to the loss of value over time. So, the premiums for older vehicles are lesser than the new ones
- You can also get a concession in the premiums if you are a member of the IRDA registered Automobile Association of India (AAI)
- Also understand that your premium depends on various factors like type of vehicle, your lifestyle and your past driving history
Advantages of Two Wheeler Insurance
With the emergence of new insurance providers every year in the market, the facilities and benefits of two-wheeler insurance are evolving with time. Following are some of the benefits of buying bike insurance:
- One can get a personal accident cover of up to Rs. 1 lakh
- Bike Insurance protects you from the legal liability of any damages caused by your vehicle to a third-party
- By buying two-wheeler insurance, you can get protection from unforeseen natural calamities like storms, earthquakes, etc.
- Add-ons like depreciation of the vehicle further increase the benefits of buying a two wheeler insurance
- Motorcycle insurance can be easily bought or renewed online without much hassle
- If you have not claimed for insurance before and buying a new vehicle, the insurance provider provides easy transfer of No Claim Bonus (NCB)
- One can get a cashless garage service if you have bought two-wheeler insurance
- You can keep track of your bike insurance policy online by logging on to the website of your insurance provider