Data reported by the National Family Health Survey (NFHS) estimated that one-third of Indian households own a two-wheeler. With so many bikes on the road, the chance of an accident is just around the corner.
This risk makes two-wheeler insurance a basic requirement for all two-wheeler owners. In order to provide financial protection, IRDAI has made it mandatory for two-wheeler owners to have a Third Party Liability policy. This is important in unexpected scenarios like a road accident when a third-party person is injured or property is damaged. However, the preferred type of two-wheeler insurance for most owners is known as Comprehensive Cover. Apart from Third party liabilities, Comprehensive Cover takes care of the cost of “Own Damages”(OD) suffered by the policyholder too. Comprehensive two-wheeler insurance is an all-inclusive protection plan.
You can use the following table to compare the two types of two-wheeler insurance plan:
|Coverage||Only Third Party Liability Cover||Comprehensive Cover|
|Damage to third party vehicle||Covered||Covered|
|Damage to third party property||Covered||Covered|
|Personal Accident Cover||Covered||Covered|
|Damage to the vehicle in case of an accident||Not covered||Covered|
|Damage to the vehicle in case of natural calamities||Not covered||Covered|
|Damage to the vehicle in case of riots or strikes||Not covered||Covered|
|Theft of vehicle||Not covered||Covered|
Both these types of two-wheeler insurance policies can be bought online. A number of popular websites provide a simple way to buy two-wheeler insurance. With this step-by-step guide, you will learn how to take two-wheeler insurance without the help of an agent:
Step-by-Step Guide to Buy Two Wheeler Insurance Online
Step 01: Focus on the Coverage:
While buying two-wheeler insurance, you should focus on the coverage offered by the insurer against the premium amount. Third-party liability cover is cheaper than Comprehensive one. But the coverage and benefits of comprehensive Policy are worth the extra bucks. It is easy to get distracted by the price and choose the cheapest plan. If you have already invested in Third Party Liability, you can opt for a Standalone “Own Damage (OD)” cover. It works well with Third Party Liability by covering the cost of damages to the insured vehicle, in case of an accident. However, at the time of choosing, look for a policy that can be useful in all kinds of emergencies. After all, that is what the premium is for.
Step 02: Enter your two-wheeler details:
To know the premium amount for your two-wheeler, you will need to enter your vehicle’s registration number. If you don't know the number, you can also enter the model, make, and a variant of your two-wheeler. For example: If you have a Honda Activa 100 CC, ‘make’ refers to the brand i.e Honda, ‘model’ refers to the product i.e Activa while ‘variant’ will be ‘100 CC’.
PRO TIP: Premium amount for two-wheeler insurance policy depends on the brand and engine capacity (in CC) of your vehicle.
Step 03: Compare Quotes:
One of the biggest advantages of buying two-wheeler insurance online is that you can easily compare quotes from different insurers. You can visit an online insurance aggregator to get all the information you need in one place. Shortlist some insurance providers based on your Insured Declared Value (IDV), available add-ons options, benefits, and claim settlement ratio. It is also important to understand the exclusions and claim settlement process.
Step 04: Look for Add-on covers:
Add-on Covers add a layer of extra financial protection for your two-wheeler. Add-ons Covers are only available in the case of Comprehensive Cover. Buying an Add-on Cover lets you ride your bike without any worries. Since they are not mandatory, you can choose Add-on Covers best suited for your needs. Add-on options like Zero Depreciation Cover, Engine & Gear-box Protection Cover, Personal Accident Cover for Pillion, etc can be added to your two-wheeler insurance.
Step 04: Select the Policy Term-One Year or Multi-Year Plans:
Your next step is to select your policy term. You can either opt for one year insurance or multi year insurance. However, if you opt for a multi-year policy, you can save upto 20% on premium payment. As part of this policy, a two-wheeler can be insured for a maximum of three years. You don't have to renew your two-wheeler insurance each year. The final choice is yours.
PRO TIP: As per Supreme Court’s order, a five-year upfront cover is compulsory for two-wheelers. This is applicable for all two-wheelers purchased on and after 1st September, 2018.
Step 05: Choose the mode of payment
After you have read and clearly understood all the documents related to your two-wheeler policy, you can buy it with a simple click. The transaction is similar to any other e-commerce website. You can use the web or mobile banking service to complete the payment. Following a successful payment, your policy is issued within minutes. A copy of your policy is also shared on your registered email ID.
7 Reasons to Buy Two Wheeler Insurance Online
- Paperless Transaction: Since the entire process is online, there is no paperwork involved. You can upload a picture of the required documents at the time of filling your information. Once the payment is successful, you will receive a copy of your policy on your registered email ID.
- No Loss of Documents: Unlike agents, buying an insurance policy online guarantees that there will be no loss of paperwork. Additionally, in case of an emergency, you can save time and produce your policy copy with a simple click.
- No inspection: When you buy insurance offline, a physical inspection of your vehicle is scheduled. This is a mandated procedure by the Insurance Regulatory and Development Authority (IRDA). But you can skip through this process if you buy a two-wheeler insurance policy online.
- 24*7 Support: Emergencies don’t have a fixed time. Therefore, it is important to have reliable support round the clock for claim assistance. When buying online, you can make use of the 24*7 help facility provided by the insurers. There is also a toll-free number where you can reach your insurer for instant support.
- Quick Claim Settlement: It is important to have enough funds at the time of emergencies. With a completely digital process, the time taken by the insurer to respond online is reduced. Since your policy is online, the chances of delay due to missing paperwork are also minimized.
- Hassle-free Renewal: Usually, you will need to renew your two-wheeler insurance at the end of every year. When you buy online, you will be reminded of the expiry weeks before the date of expiration. This will ensure your vehicle is never left uninsured.
- Smooth Transfer of No Claim Bonus (NCB): If you choose to change your insurer at the time of renewal, you can transfer your No Claim Bonus (NCB) from your previous insurer instantly.
For first time buyers, taking a two-wheeler policy online may seem confusing. However, the ease of digital platforms and instant payment facility makes it an easy experience. It is important to research and compare the benefits of different insurers before buying. Also, make sure to check the social media and website of the insurer you are choosing for reviews and testimonials.