Two wheeler Insurance

Bike Insurance is the best solution that can help you cover the financial costs and losses that can arise because of an accident. A two-wheeler insurance policy covers all kinds of two-wheelers such as a scooter, motorcycle, moped, etc. irrespective of their use, which could be commercial or personal. 

The concept behind two-wheeler insurance is to bring a financial cover against unforeseen damage that is caused to the two-wheeler, the riders as well as the other people or property involved in an accident. 

However, according to a recent survey, it has been seen that 75% of the two-wheelers in India are still uninsured.

Types of Two-Wheeler Insurance Policies

There are two types of insurance- one part of the insurance policy provides coverage for the damage done to anyone else due to the accident or his vehicle or property, which is covered under a Third-party liability cover, and the other part provides coverage for the damage done to his own bike, which is covered under OD component. 

Bike insurance companies offer three main types of bike insurance policies:

1. Third-Party Liability only
   
   As per the guidelines issued by the Motor Vehicles Act, 1988, buying third-party two-wheeler insurance is mandatory.

Third-party bike insurance means that in case of an accident of your bike some other person, property or vehicle is also injured, that financial loss will be taken care of by the insurance company. This kind of insurance covers the minimum and is a compulsory requirement of providing coverage against the losses of the third party. 

For example, if your scooter hits another person’s bike, that bike’s repair cost will be borne by your insurance company. However, the company would not cover the cost of repair to your own two-wheeler.

1. Comprehensive Bike Insurance Plan
   In simple words, comprehensive insurance is the combination of third-party insurance along with a cover for your own bike’s damage. As the name suggests, comprehensive two-wheeler insurance gives your two-wheeler maximum coverage as it covers all the damages not only to the third party but to your own two-wheeler too. The damage to the two-wheeler could be due to an accident, a collision, or a natural disaster. Additionally, a comprehensive two-wheeler insurance plan also covers two-wheeler theft.

To understand the difference between a third-party and comprehensive two-wheeler plan, let's  take a look at the table given below:

• Long-term Two-Wheeler Insurance Plans

This is the latest addition to the category of bike insurance, which allows you to insure your bike for a period of 2 or 3 years together in a single policy. You do not have to go through the trouble of renewing the plan every year. You have this option in both third-party two-wheeler insurance as well as comprehensive two-wheeler insurance.

Benefits of Two-Wheeler Insurance Policy 

Having insurance for your two-wheeler shouldn’t just be a mandatory formality, for it also comes in very handy when one gets involved in an accident.

However, if you are contemplating whether to opt for two-wheeler insurance or not, read the benefits of having one:

1. Legal requisite
   As two-wheeler insurance is a legal necessity under the Motor Vehicles Act, 1988. It saves you from fines and other legal complications.
2. An affordable deal
   A two-wheeler insurance policy comes at a quite reasonable price, especially when you compare the amount of money that you may have to bear in case of an accident.
3. Easy to buy
   The offline way of buying insurance was indeed a tedious one, but now as most people are buying two-wheeler insurance online, comparing premium prices, buying insurance, paying premiums, renewal, etc. has become very easy.
4. Saves you from financial burden
   Since the third-party losses are covered, you are protected from the financial burden and legal liabilities, if you accidentally hurt someone or damage something.
5. Keeps you risk-free, stress-free
   Insurance policy comes with a twofold benefit, you not only get relief from potential risk but also from stress. When you have two-wheeler insurance, you safeguard yourself, your vehicle, and also the third party.
6. Wide range of add-on options
   A standard comprehensive two-wheeler insurance plan comes with numerous add-on options. By spending a little extra you can opt for some very helpful and practical cover options like:
   1. Zero depreciation
   2. NCB Protect
   3. Accident cover for Pillion Rider
   4. Consumables Cover
   5. Return to Invoice
   6. Roadside Assistance

What is Covered in a Two-Wheeler Insurance Plan?

Let us take a look at what is the scope of two-wheeler insurance:

1. Third-Party Liability Plan
   Under this plan, only third-party damages are covered. The types of liabilities include:
   1. When a person gets  injured due to your insured two-wheeler 
   2. When a person dies due to an accident with your insured two-wheeler 
   3. When the property of a person gets damaged because of your insured two-wheeler
2. Comprehensive Plans
   The scope of comprehensive two-wheeler insurance is very wide, it includes the following liabilities- 
   1. When a person gets injured or dies  due to your insured two-wheeler
   2. When the property of a person/group gets damaged because of your insured two-wheeler 
   3. When your bike gets damaged in an accident
   4. The loss you may suffer when the bike is damaged because of a natural disaster like earthquake, lightning, floods, landslides etc.
   5. The loss you may suffer when the bike is damaged because of man-made disasters like fire, blasts, riots etc.
   6. When the insured two-wheeler is stolen
   7. The loss you may suffer when the insured two-wheeler is damaged because of transportation from one place to the other

Basically, a comprehensive bike insurance plan provides overall coverage to all types of accidental risks that might be involved with your two-wheeler.

1. Personal Accident Cover

Both the policies come with a binding personal accident cover that is mandatory to be taken. This covers the owner-driver with any disability or death caused because of the accident and comes with a cover of INR 15 lakhs. In case the owner-driver of the two-wheeler suffers permanent disability or death then 100% of the value, which is INR 15 lakhs, will be paid. 

However, when there is a permanent partial disability, 25-75% of the total value is paid, depending on the severity of the disability, according to the table:

What Is Not Covered In A Two-Wheeler Insurance Policy?

1. Comprehensive Two-Wheeler Insurance

Comprehensive two-wheeler insurance allows a wide scope of cover, but there are certain expenses that are not covered under it. These are called exclusions and most two-wheeler insurance companies do not cover them.

1. Third-Party Two-Wheeler Insurance

Let us now see what are the exclusions, or what all is not covered, in a Third Party two-wheeler insurance:

How to Compare Two-Wheeler Insurance Plans Online?

If you plan to buy the best two-wheeler insurance online, it is recommended that you draw a comparison between the different plans available and then select the one that provides you with a better cover and also suits your requirements. Comparing the plans online makes the screening process easy and hassle-free. 

You may want to consider the following parameters when selecting a plan:

1. Insured Declared Value (IDV)
   You may want to select a plan that offers you the maximum IDV, Insured Declared Value. IDV is the upper limit of the compensation that you would receive in case of damage repair, theft or total loss under a comprehensive plan. This value is fixed by the insurance company based on the condition of your bike.
2. Cover
   Carefully analyse all the features that are being promised by the insurance company. Though most companies offer almost similar coverage, there are certain features that can give the plan an edge over the others. 
   Tip: Look out for an all-inclusive list or the one with the maximum cover.
3. Add-On Benefits
   An add-on can greatly enhance the range of the coverage and most companies are offering an array of add-ons to choose from. Benefits like roadside assistance, for example, can be very helpful if you are stuck somewhere away from the city. Or a zero dep add-on cover, which widens the comprehensive plan coverage and does not consider the depreciated value of various parts at the time of claim.
4. Discounts 
   Sometimes two-wheeler insurance companies offer certain discounts that help you grab a great deal. Discounts may come in the form of No-claim bonus on the own-damage component premium in case of a comprehensive plan, or if you have anti-theft devices, and so on. So, look for such options to save on premiums.
5. Premium
   The rate at which the policy is charged is called the premium, and it must be compared along with the features that are being offered. The best two-wheeler insurance plan is the one that offers maximum benefits and the cheapest premium. 
   There are certain factors that affect the premium, these are:
   • Type of two-wheeler
   • The capacity of the engine
   • How old the bike is
   • Place of Registration
   • Type of policy - Third-party or Comprehensive, Single year or Multi-year
   • New Policy/Renewal
   • Selected add-ons
   • Discounts, if any

Two-Wheeler Insurance Premium Calculator

An online premium calculator is a great tool that helps in giving an estimate of the premium that you need to pay. With an online bike insurance premium calculator, it becomes simple and easy to compare the premium that is being offered by different companies which in turn helps you select the best two-wheeler insurance plan. 

There are various premium calculators available online, you can look for one in your search engine. Once you find one, you need to enter the following details: 

• Make and Model of your bike
  The make, model and variant of your bike will be the first thing you would require to fill in.
• Year of Registration
  In calculating the premium, the year of registration plays a key role.
• Details of Existing Insurance
  Whether it is a new policy or being renewed, in case of a renewal, depending on whether it is an active policy or expired, the premium will be affected.
• Type of Insurance
  The premium is different for third-party insurance and comprehensive bike insurance.
• History of Claims you have Made
  In case you have not made a claim in the previous year, you will be eligible for an NCB, No-Claim Bonus under a comprehensive plan.
• Single year or Multi-year plan

            The premium will vary for a single-year policy and a multi-year policy. Some companies do offer discounted premiums on a multi-year policy.

Two-Wheeler Insurance Claim Process

If you follow all the procedures of the claim, claiming the bike insurance will be a piece of cake. You simply need to follow the steps given below:

1. After an accident, you need to inform the two-wheeler insurance company as early as possible
2. The company may advise taking your bike to a preferred network garage. In case only a non-network garage is accessible you may be reimbursed later. 
   Tip: It is better to check beforehand if the selected non-network garage will be authorised for reimbursement. 
3. A company surveyor may visit the garage to assess the damage. He would prepare a report and submit it to the company
4. After approval, the two-wheeler would be repaired
5. If someone else is injured due to your vehicle or his vehicle or property is damaged, and a third-party claim is to be made, a MCR(Motor Collision Report) must be filed in the nearest police station
6. In case of theft of your bike, file an FIR at the earliest and inform the insurance company about the same

Types of Two-Wheeler Insurance Claims

Depending on the kind of bike insurance plan you have, your claim would be either Cashless or you would pay the expenses first and then be reimbursed.

1. For a Cashless Claim
   After the accident, if the two-wheeler was taken to a network garage, the claim will be settled by the company.
2. For Reimbursement
   But in case the two-wheeler was repaired at a non-network garage and you had to pay the charges from your pocket, you can submit the bills to your bike insurance company. The company will assess and reimburse you.

Given below is a list of the documents that you would have to submit when making a claim for your two-wheeler:

• Duly filled Claim Form
• Policy Papers
• Driver’s license
• RC of the bike
• The ID of the claimant
• Copy of the FIR, in case of theft or a third party claim

Best Two-Wheeler Insurance Companies in India (2022)

There has been a steady increase in the number of two-wheeler accidents, making a two-wheeler insurance plan all the more necessary. There are a plethora of two-wheeler insurance companies in the country, however, the following two-wheeler insurance companies, which are approved by the IRDAI,  offer a comprehensive scope of cover. 

Renew Your Lapsed/Expired Two-Wheeler Insurance Policy Online

The policy tenure of two-wheeler insurance can be for 1 or 2 or 3 years, after the completion of which you need to renew the policy. Renewing the policy has been made very easy and can be done online in no time. All you need do is visit the official website of your two-wheeler insurance company,  enter the bike details, enter the details of the existing policy, select what you want in the plan, pay the premium and it is done. Renewing a lapsed or expired policy online is a safe and quick way and you can do it at your convenience. 

Given below is a list of the documents that you would need when renewing a lapsed/expired two-wheeler insurance policy online, along with a duly filled Insurance Renewal Form:

• The government authorised ID proof (Passport/PAN Card/Adhaar card)
• Driver’s license of the policyholder
• Policy Papers of the lapsed policy/policy number
• RC of the bike
• Registration Number of the bike

You would also require a debit/credit card to pay the premium. You can also make the payment through net banking.

While renewing an Expired Two-wheeler Policy
Since your two-wheeler insurance comes with an expiry date, renewing it timely is extremely vital. This careless slip-up can not only make a huge dent in the wallet, but it is also illegal. Ideally, you need to renew your bike insurance plan before it expires. However, if your two-wheeler  policy has expired:

Remember: 

• Inspection
  It will be renewed only after a surveyor from the bike insurance company inspects your bike. Once he recommends the renewal, you would have to fill in the proposal form and submit copies of the documents listed above. After all the formalities are performed duly, you will receive a payment link through which you can pay and renew the insurance. However, there are some insurance companies that renew your expired/lapsed two-wheeler insurance policy without inspection. In that case, you can renew your lapsed two-wheeler policy online instantly without any inspection.

Timely Renewal

It is imperative to renew a lapsed policy within a period of 90 days otherwise No-Claim Bonus and all the other benefits will be considered invalid.