Save more on Two Wheeler Insurance

Insured declared Value or IDV is the upper limit of the compensation that you would receive in case of repairing damages, vehicle theft or total loss at the time of claim. This value is fixed by the insurance company based on the condition of your two-wheeler. 

In case of theft of your bike, file an FIR at the earliest and inform the insurance company about the same. Along with the copy of your FIR, submit the following documents to make the claim:

• Duly filled Claim Form
• Policy Papers
• Driver’s license
• RC of the bike
• The ID of the claimant

Having a personal accident cover is mandatory. The PA or the personal accident cover comes with both Third-Party two-wheeler insurance and Comprehensive two-wheeler insurance. It covers any disability or death that is caused because of the accident and comes with a cover of INR 15 lakhs. In case the owner-rider of the two-wheeler suffers permanent disability or death then 100% of the value will be paid and when there is a permanent partial disability, 25-75% of the total value is paid.

A TP or a Third Party two-wheeler insurance covers the liabilities that are suffered by the other party because of your bike. It is a formality that is mandatory under the Motor Act. Comprehensive two-wheeler insurance, on the other hand, will cover not only the damages to your bike but also the third party. It is an optional formality.

As the name suggests, a single year two-wheeler insurance comes with the policy tenure of 1 year, and multi-year two-wheeler insurance comes with a policy tenure of more than a year. If you purchase a two-wheeler insurance plan for your bike for a tenure of 3 years, you are free from the hassle of renewing it every year for the coming 3 years. As compared to single-year two-wheeler insurance, multi-year two-wheeler insurance is more advantageous as you can save almost 20-40% on the premium apart from the other lucrative discounts. Also, even when you opt for multi-year two-wheeler insurance, the IDV, i.e the Insured Declared Value will remain the same which is again beneficial, otherwise every year the IDV will reduce. The table shows the rate of depreciation:

When you buy a bundled two-wheeler insurance plan it provides you with a cover for third party claims for a period of 3 years and a cover for your own damage for a period of 1 year. 

From 1 September 2019 two-wheeler owners with Third-party insurance, have been allowed to buy standalone Own Damage (OD) insurance. This policy cover provides insurance to the two-wheeler against theft as well as own vehicle damages. It is a yearly product that the policyholder has to renew annually and can only be bought along with a valid third-party only bike insurance plan.

When you do not make a claim throughout the policy tenure, you get a discount on the own-damage component premium under a comprehensive plan, when you renew the policy. This discount is called a no-claim bonus (NCB). The discount generally increases with claim-free years and can be between 20% to 50%.