All About Two-Wheeler Insurance

Riding your bike without a valid two-wheeler insurance plan is considered illegal. Financial coverage is offered by two-wheeler insurance policies in the case of any bodily injuries or any property damage. Under bodily injuries, pedestrians, the pillion, and rider are covered.

The importance of opting for a two-wheeler insurance policy is mentioned below: 

1. ✅You can Avoid Financial Stress: In case your vehicle is damaged or stolen, you won’t have to worry about the costs incurred in fixing it or replacing it as the insurance company will take care of it.
2. ✅You will have Legal Protection: Considering the fact that it is compulsory to have an insurance policy in place when riding on Indian roads, carrying a copy of your insurance policy will ensure that you will be legally protected against paying fines or penalties.

1. ✅ You will Receive Personal Accident Cover: If you are insured, the insurance company will provide cover (up to a certain amount) in case you suffer total permanent disability. In case the policyholder passes away, your family will receive the sum assured from the insurance company.
2. ✅No Claim Bonus: You will be able to enjoy benefits like No Claim Bonus (NCB).
   

Advantages of Buying a Bike Insurance Policy Online

Some of the main advantages of purchasing a two-wheeler insurance policy online are mentioned below:

1. The policy can be renewed easily.
2. No documents need to be submitted.
3. In most cases, inspection is not needed.
4. Discounts may be provided.
5. Need not provide details of the previous year’s policy.
6. The process to purchase insurance cover is simple.

Types of Bike Insurance

There are two kinds of two-wheeler insurance policies, viz. comprehensive plans and liability-only plans.

Two-Wheeler Third Party Insurance Premium

Depending on the type of coverage you buy, a bike insurance plan offers protection against liabilities that result from injuries to the rider, the pillion passenger, as well as third parties. It is crucial to evaluate plans offered by different insurers in order to choose the most affordable two-wheeler insurance policy with sufficient coverage. 

E-Bike

Regular Two-Wheelers

Inclusions of Two-Wheeler Insurance

The policy document will cover all the inclusions and exclusions of your motorcycle insurance plan. Generally speaking, the following are the inclusions of a two-wheeler insurance policy:

1. Natural Events: A bike insurance policy provides coverage for damages caused by natural calamities such as fires, earthquakes, inundations, hurricanes, self-ignitions, floods, storms, lightning, hailstorms, frost, cyclones, tempests, rockslides, etc.
2. Man-Made Events: Two-wheeler insurance policies also provide coverage for damages caused by man-made calamities such as thefts, burglaries, strikes, riots, etc., even when the two-wheeler is being transported from one location to another by air, waterways, railways, or road.
3. Legal Third-Party Liability: Any legal losses suffered as a result of third-party injuries are covered by a 2-wheeler insurance policy. In addition to provide protection against damage to third parties' properties, it also covers the death of a third party.
4. Personal Accident Coverage: In case the owner or a driver of a two-wheeler meets with an accident, a personal accident cover to the extent of Rs.1 lakh will be provided as cover for permanent or temporary disabilities or loss of limbs resulting in total or partial disability.

Exclusions of Two-Wheeler Insurance

The following are the general exclusions of a two wheeler insurance policy:

1. Damages incurred by normal wear and tear of the two-wheeler.
2. Losses incurred due to electrical or mechanical breakdowns.
3. Damage to tubes and tires.
4. Consequential losses or depreciation from regular use of the vehicle.
5. Losses incurred by the vehicle when it was being used for illegal purposes.
6. Damages or losses incurred by the vehicle when it was being used by someone who does not have a valid driving license.
7. Damages or losses incurred by the vehicle when the driver was using the vehicle under the influence of drugs or alcohol.
8. Damages or losses incurred by the vehicle due to mutiny, war, or from nuclear risk.

Depending on the type of coverage you buy, a bike insurance plan offers protection against liabilities that result from injuries to the rider, the pillion passenger, as well as third parties. It is crucial to evaluate plans offered by different insurers in order to choose the most affordable two-wheeler insurance policy with sufficient coverage.

Bike Insurance Premium Calculator

Most insurance companies have their own two-wheeler insurance premium calculators that make it very simple for you to calculate the premium applicable to your bike. All you need to check your premium online is to ensure that your vehicle is registered with the Regional Transport Office, and your premium will be calculated by the system.

The process involved in calculating two-wheeler insurance premiums is mentioned below:

1. Enter details regarding your two-wheeler, such as the number of the vehicle, the make, the model, the variant, etc.
2. The registration details of the two-wheeler must be entered, such as the RTO location where the vehicle was registered.
3. You will have to mention whether or not you had a two-wheeler policy previously, and whether or not it has expired.
4. Click on ‘Get Quotes’.

Saving on Two-Wheeler Insurance Premium

The different ways by which you can save on the two-wheeler insurance premium are mentioned below:

1. Vehicle’s Age: The IDV will be low for old vehicles, which will result in a low premium.
2. NCB:  You can use the NCB that has been earned to reduce the premium.

Two-Wheeler Insurance Add-on Covers

The majority of insurance providers bundle extra coverage with their bike insurance policies. Each add-on cover has its own advantages, giving you the freedom to choose only those that will meet your specific insurance needs.

The available optional riders are as follows:

1. Personal Accident Cover for Pillions: When you supplement your bike insurance policy with a personal accident cover for the pillion, your financial liability can be lowered significantly in case of accidents where the pillion rider is injured. This add-on feature provides coverage for the death or permanent or partial disability of the pillion rider.
2. Roadside Assistance: By purchasing the roadside assistance add-on cover, you can avail roadside assistance at any time in case of a mechanical failure or the breakdown of your vehicle. This feature offers facilities such as free towing, immediate repairs, etc. and it comes in very handy especially when you are travelling to a remote place where it could be difficult to find help.
3. Accessories Cover: Having this add-on cover will provide coverage for all the accessories of the two-wheeler, electrical or non-electrical. In case any of the accessories of the vehicle are damaged, the rider will cover the cost of repairing or replacing it.
4. Consumables Cover: The consumable cover can be of great help when it comes to receiving compensation for costs incurred on nuts, bolts, engine oil, etc. Since consumables are not covered under basic two-wheeler insurance policies, purchasing this optional rider will ensure that you are financially covered for the aforementioned costs.
5. Zero Depreciation Cover: The full claim amount won't be covered by either a liability-only insurance policy or a complete two-wheeler insurance policy, regardless of which one you choose to buy. The insurance company subtracts depreciation, and only the balance is paid out.

However, if you add a zero-depreciation cover to your bike insurance policy, the depreciation factor will be removed and you will be entitled for the full claim amount.

1. Daily Cash Allowance: The daily cash allowance add-on cover is ideal for those who commute solely on two wheelers. In case your bike is seriously damaged and is undergoing repairs at a garage, you may have to incur out-of-pocket expenses to travel without it.

Adding the daily cash allowance cover to your two-wheeler insurance policy will mean that your insurer will give you a certain amount of money per day to meet your travel expenses.

1. Engine Cover: The engine cover can come in very handy if the engine of your two-wheeler or the ancillary circuit gets damaged because of flooding or waterlogging. Considering the cost of repairs to engines can extend to several thousands of rupees, the engine cover will cover these expenses and allow you to have total peace of mind.
2. Return to Invoice Cover: When you purchase a two-wheeler, there is always a risk that it could be stolen. Since the value of every machine depreciates over time, the value of your bike will be relatively lower after a period of, say, six months.

However, purchasing the return to invoice cover to supplement your motorcycle insurance policy will mean that you will be reimbursed the actual value of the vehicle in case it is stolen or suffers total loss due to natural calamities or theft.

Claim Settlement Process for Two-Wheeler Insurance

The procedure mentioned below will help you with the claim settlement process for two-wheeler insurance through reimbursement claim and cashless claim:

Reimbursement Claim Settlement Process

1. File a claim with your insurance company.
2. Complete the claim form. Send the completed form and necessary documents to the insurance company.
3. The insurance company will conduct a survey to determine the cost of repairs and will inform you about the results.
4. After receiving the survey result, you can give your vehicle for repair to the garage that is not registered with your insurance company.
5. The insurance company will conduct another inspection after the repair of your vehicle is done.
6. Clear the bill at the garage by paying all the fees.
7. Send the insurer all the invoices, payment receipts, and ‘Proof of Release’.
8. The claim amount will be paid to you once it has been accepted.

Cashless Claim Settlement Process

1. Firstly, inform your insurance company about the accident of your two-wheeler.
2. Your insurance company will do a survey regarding the accident.
3. Complete the claim form, then submit it with all necessary supporting documents to your insurance company.
4. After the insurance company approves your request, your vehicle will get repaired at a garage associated with your insurance company.
5. After repairs, your insurance will pay the garage directly for the repair costs.

Note: Deductibles and other costs that are not covered must be met by you (if any).

Documents Needed for Filing Bike Insurance Claim

The documents needed for filing bike insurance claim are mentioned below

1. Completed and signed claim form
2. Valid copy of Registration Certificate (RC)
3. Valid driving license
4. Repair invoice and original payment receipt
5. Valid two-wheeler insurance policy
6. Proof of release (in the event that a reimbursement claim is settled)
7. Accident, theft, and third-party liability police reports

Process to Purchase Two-Wheeler Insurance Online

The procedure that must be followed to purchase a two-wheeler insurance cover online is mentioned below:

Step  1 - Visit the official website of the insurer.

Step  2 - Select bike insurance or two-wheeler insurance.

Step  3 - Enter the vehicle number.

Step  4 - Choose ‘Get Quote’.

Step  5 - The vehicle details will be displayed.

Step  6 - Choose the add-on covers that are needed and the type of insurance cover to get the quote.

Step  7 - Make the payment to purchase bike insurance cover.

Factors to Keep in Mind While Choosing Bike Insurance

Below are a few factors that one should keep in mind while choosing a bike insurance -

1. Coverage Scope - Numerous vehicle insurance providers provide both required third-party and optional comprehensive coverage. However, you must carefully review the 2-wheeler insurance policy's terms and exclusions before buying it.
2. Claim Settlement Process – Nowadays, the majority of insurance companies employ a customer-friendly claim-settlement strategy. You must research the insurer's Incurred Claim Ratio (ICR) before purchasing any coverage. The ICR is the ratio of the number of claims resolved by the insurance company to the overall number of claims made by their client.
3. Add-Ons and Coverage Offered by the Insurance - With your comprehensive bike insurance, you can add-on extras by paying a surcharge. Zero depreciation insurance, personal accident insurance, roadside assistance, NCB protection insurance, etc. are some typical add-ons. To increase the policy coverage, you can choose add-ons based on your needs and budget.
4. Customer Care - When picking an insurer, one of the important things to look for is a team that provides client service around-the-clock. The term "spontaneous customer assistance" refers to their willingness to help you whenever you need it with all of your questions and claim resolutions.

KYC Documents Needed to Buy/Renew Bike Insurance

The KYC documents needed to buy/renew bike insurance are mentioned below -

1. Identity proof documents (Passport, Aadhaar card, PAN Card, driving license, Voter ID)
2. Address proof (Passport, Aadhaar card, driving license, Voter ID)

Features of Two-Wheeler Insurance

The following are the key features of a two-wheeler insurance policy:

1. Bike insurance policies are categorised as motor insurance policies that are part of the general insurance industry.
2. Motorcycle insurance plans provide financial coverage against damages incurred by the insured vehicle as well as theft of the vehicle.
3. In case your two-wheeler insurance policy has expired, all the damages incurred by your vehicle will have to be borne by you.
4. Bike insurance plans offer coverage against natural disasters as well as man-made calamities such as earthquakes, storms, landslides, riots, theft, explosions, strikes, etc.
5. In case of the loss or theft of your vehicle, a pre-determined sum assured up to the Insured Declared Value will be provided to you.
6. When purchasing a bike insurance policy, you will be required to pay a pre-specified premium to the insurance company over regular intervals of time for a certain period.
7. Premium rates are cost-effective and can be negotiated with the insurer at the time of purchasing the policy. Premium amounts start from Rs.600.
8. The personal accident cover on bike insurance is limited to Rs.1 lakh for damages incurred by the insured vehicle as a result of an accident.
9. Discounts of up to 70% of the premium can be claimed through the no-claim bonus offered by most two-wheeler insurance companies.

You can choose the kind of coverage you require from liability only and comprehensive two-wheeler insurance plans. The Indian Motor Vehicles Act has made it mandatory for all vehicles to be covered by a liability only policy. It provides coverage against wear and tear of your two-wheeler. The following are the factors you should consider when purchasing two-wheeler insurance:

• Instant Policy : Customers who wished to purchase or renew their bike insurance plan, until recent years, would be given a cover note instead of the policy itself. They would receive the original policy document only after a few days as insurers would mail it to their address at a later date. Thanks to advancements in technology and quicker banking facilities, nowadays, you can get a digitally signed policy from the insurance company as soon as you make the payment.
• Simplicity of Transferring No Claim Bonus : In case you purchase a new two-wheeler, transferring the No Claim Bonus is a process that has been made relatively simple by insurance companies. The bonus is transferred in the name of the owner or the driver of the vehicle, and not the vehicle itself. The No Claim Bonus is given to drivers and vehicle owners because of the safe driving practices followed by them and not making any claims in the previous year(s).
• Optional Covers : Optional covers include increased cover for accessories and spare parts, personal accident cover to protect pillion riders, zero depreciation cover, etc. You can purchase these covers at a nominal fee and increase the level of protection for your vehicle. These covers come in handy in times of unfortunate or unforeseen events.
• Discounts : Insurance companies that are approved by the Insurance Regulatory and Development Authority of India offer discounts for a few factors like membership of reputable automotive associations, lower premiums for vehicles fitted with approved systems such as anti-theft devices, etc. Even those who have two wheelers and have an unblemished record are eligible for discounts in No Claim Bonus.
• Online Purchase and Renewal : Bike insurance plans can be purchased and renewed online with relative ease. Many insurance companies also have mobile apps that make it convenient for customers to purchase or renew their policies. Considering the fact that all details of the policy are stored in the database, the renewal process is relatively simple and happens very quickly.

Read more about 6 Benefits of Two Wheeler Insurance Renewal

What are the Consequences of Not Buying Two-Wheeler Insurance?

Under the Motor Vehicles Act, 1988, it is mandatory to have two-wheeler insurance for all motor-vehicle owners. There are mainly two types of two-wheeler insurance, such as Comprehensive Two-Wheeler Insurance and Third-Party Liability Insurance. The following are the consequences of not having a two-wheeler insurance:

1. Legal Consequences

The following are the legal consequences that comes with a vehicle without two-wheeler insurance:

1. Depending on the severity of the offense and the discretion of the authorities, you may have to pay hefty fines for riding a two-wheeler without a two-wheeler insurance policy.
2. You may have to face legal complications, including potential court cases and legal proceedings if you do not have valid two-wheeler insurance.

1. Financial Consequences

Here is the list of financial consequences that you will have to go through if you ride a vehicle without two-wheeler insurance:

1. In case of major accidents, the repair and replacement cost of the two-wheeler may be much high which you will have to take care of if you do not have two-wheeler insurance.
2. Premium gets increased if you do not have two-wheeler insurance as you cannot accumulate NCB as it acts as a discount on the premium.
3. You will have to bear the financial liability of any third-party claims in case of accidents if you do not have two-wheeler insurance, which includes legal, medical, and property damage expenses.

1. Personal Consequences

The following are some of the personal consequences that you might face if you do not have two-wheeler insurance:

1. No personal coverage can be availed if you do not purchase two-wheeler insurance and as a result you may have to bear the entire medical expense in case of accident, hospitalisation, or injuries.
2. The financial burden related to accidental damage or injury is one of the outcomes of riding a two-wheeler without two-wheeler insurance and may lead to immense mental stress.
3. You may get drained financially if you do not have two-wheeler insurance as the repair and replacement cost during accidental damage to your two-wheeler will have to be taken care of by you.

How to Compare and Choose a Two-Wheeler Insurance Policy?

Selecting the right two-wheeler insurance policy can be a tedious task as it involves a lot of research and comparison. There are various insurance companies around the country and picking one that caters to your unique insurance needs can be a tough thing to do. Mentioned below are the elements that you must consider while comparing multiple two-wheeler insurance policies:

1. Comparison of the kind of coverage you need (comprehensive or third-party liability only)
2. Comparison of the Insured Declared Value
3. Comparison of premiums
4. Comparison of cashless network garage list
5. Comparison of add-on covers

Here are a few things that must be checked when comparing two-wheeler insurance plans

1. Type of Cover

There are typically two types of bike insurance coverage: comprehensive coverage and liability-only coverage. While many people choose liability-only policies since they are required by the Indian Motor Vehicles Act, comprehensive two-wheeler insurance is a preferable choice because it offers several advantages. It's important to first recognize the type of coverage you require before comparing policies.

1. Optional Covers or Add-Ons

The level of coverage given by the base policy can be increased with add-on features or supplemental covers offered by insurance providers around the nation. These coverings may be extra features that address the two-wheeler's wear and tear, provide accident coverage for fellow passengers, etc. Some insurance policies, like zero depreciation, are useful because they make sure you don't pay extra money for the depreciation of the vehicle's components.

1. Features and Facilities Available

Several insurance companies across India are very customer savvy in the sense that they have designed a number of features and benefits that aid customers in the claims process. For example, all insurers have a 24/7 customer care support that makes it easy for customers to get assistance at any time. The customer care support facility can help you get the best advice on renewals, claims, NCB transfer, etc.

1. Claims Process

Given that the majority of insurance firms prioritize their customers, filing claims with them is generally straightforward and hassle-free. A few stages make up the complete claims process, including notifying the insurer of the claim, filing a FIR at the local police station, delivering the two-wheeler to the garage, providing the required documentation along with the claim form, etc. Most of the time, the insurance company will pay for all accident-related expenses, leaving the car owner to pay for things like taxes and servicing fees that are not covered by the insurance policy. You can use assistance from the insurance company given the difficulty of the claims procedure.

1. Renewal Process

Insurance companies have made it relatively easy for customers to renew their motorcycle insurance policies online. In case your policy has expired and you do not wish to renew it as you want to purchase another policy, you can do so easily on the website of the company from which you purchased the plan.

1. Availability of Discounts

When you compare two-wheeler insurance policies, it is advised that you go for companies that provide concessions and discounts for certain factors like membership of reputed automotive associations, no claim bonus (NCB), inclusion of anti-theft systems, etc. Some companies also offer extra discounts on online renewal, purchase of a policy using a credit card etc.

How to Check Bike Insurance Online?

In order to check details of the bike insurance policy online, you will need to visit the official website of the insurer. You can check the premium as well by entering details of the two-wheeler such as the registration number, year the bike was manufactured, NCB, etc.

How to Renew Bike Insurance Online?

The renewal of your 2-wheeler insurance policy can be done with relative ease online. Insurance companies across the country have their own websites where you can login and renew your bike insurance policy onliine . In fact, many insurers have also tied up with mobile payment vendors to make it more convenient for customers to renew their policies.

Moreover, technologically advanced companies have their own mobile applications that make it very simple for bike owners to purchase and renew their policies online.

Renewal Two-Wheeler Insurance at a Branch

If you want to renew your two-wheeler insurance policy the old-fashioned way, stop by a branch of the insurance provider. Even while the procedure to renew your bike insurance plan at a branch of the insurance company is straightforward, you will still need to set aside some time to get to the branch.

To complete the application form, you will need to bring your old policy and information on the vehicle with you. If you pay your premium by cash, demand draft, or debit card at a branch office when renewing your insurance coverage, the new policy will be provided to you right away. If you choose to pay the premium with a check, your policy will be mailed to your residential address later after taking some time to clear.

Renewal  Two-Wheeler Insurance Through Mobile Applications

Since many insurance companies have launched their own mobile apps or tied up with mobile payment vendors, renewing your two-wheeler insurance is as easy as it gets. The applications request certain information such as the registration number of the vehicle, the name of the manufacturer, the make and model of the vehicle, etc. The apps also need details of your policy, such as the name of the insurer, the policy number, etc. By filling in these details and paying the premium, your motorcycle insurance policy can be renewed quickly and without any hassle.

Since many insurance companies have launched their own mobile apps or tied up with mobile payment vendors, renewing your bike insurance policy is as easy as it gets. The applications request certain information such as the registration number of the vehicle, the name of the manufacturer, the make and model of the vehicle, etc.

The apps also need details of your policy, such as the name of the insurer, the policy number, etc. By filling in these details and paying the premium, your motorcycle insurance policy can be renewed quickly and without any hassle.

How to Claim Two-Wheeler Insurance?

Insurers can claim their two-wheeler insurance loan in two methods. Both of these methods are done online and are discussed briefly below -

1. Reimbursement claim – Insurers can claim for reimbursement claim if they have done the repairs on their two-wheeler in garage that doesn’t come under the insurance company. For this, the insurer has to pay the repair amount first and then claim it under the insurance.

1. Cashless claim – If the insurer opts for a cashless claim, the insurance company will directly pay the amount to the registered garage where the repair is done. However, this option can only be availed if the repair is done in any garage registered with the insurance company.

Factors to Keep in Mind While Choosing a Bike Insurance

Below are a few factors that one should keep in mind while choosing a bike insurance -

1. Coverage Scope - Numerous vehicle insurance providers provide both required third-party and optional comprehensive coverage. However, you must carefully review the 2-wheeler insurance policy's terms and exclusions before buying it.

1. Claim Settlement Process – Nowadays, the majority of insurance companies employ a customer-friendly claim-settlement strategy. You must research the insurer's Incurred Claim Ratio (ICR) before purchasing any coverage. The ICR is the ratio of the number of claims resolved by the insurance company to the overall number of claims made by their client.

1. Add-Ons and Coverage Offered by the Insurance - With your comprehensive bike insurance, you can add-on extras by paying a surcharge. Zero depreciation insurance, personal accident insurance, roadside assistance, NCB protection insurance, etc. are some typical add-ons. To increase the policy coverage, you can choose add-ons based on your needs and budget.

1. Customer Care - When picking an insurer, one of the important things to look for is a team that provides client service around-the-clock. The term "spontaneous customer assistance" refers to their willingness to help you whenever you need it with all of your questions and claim resolutions.

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