A recent report released by the National Family Health Survey (NFHS) showed that 33% of Indian families own a bike.
In order to provide financial security, in case of an unfortunate accident, IRDAI has made it compulsory for all bike owners to have a Third Party Liability insurance policy. This is important to protect third party individuals and property in case of a mishap.
However, this coverage is often found to be insufficient. Therefore, most bike owners at the time of renewal choose a Comprehensive Cover for financial safety.
As per the Motor Vehicle Act of 1988, it is mandatory for all two-wheeler owners to have a valid third party bike insurance. If you are caught with riding with an expired policy, you will have to bear a hefty fine. If you fail to renew and meet with an accident immediately after the date of expiry, your insurer will reject your claim request. This implies that missing out on your renewal could lead to legal as well as financial damage.
Both these types of two-wheeler insurance policies can be renewed online. A number of popular websites provide a simple way to renew two-wheeler insurance.
Step-by-Step Guide to Renew Your Two Wheeler Insurance Online
With this step-by-step guide, you will learn how to renew your two-wheeler insurance without any hassle right from your smartphone just like shopping from an e-commerce website:
Step 01: Select Type of Insurance:
While renewing your bike insurance, you should decide the type of insurance based on the coverage offered against the premium amount. Third-Party Liability cover is less expensive than Comprehensive one. However, the coverage and additional services offered under the Comprehensive Cover is worth the extra cost.
If you have invested in a long-term Third Party Liability at the time of buying and you want to widen up the coverage, you can also choose on a Standalone "Own Damage (OD)" cover. It complements the Third Party Liability by taking the financial burden off you in case of accidental damages to the bike.
At the time of renewing, it is best to choose a plan that can be useful in times of crisis.
The below table lets you compare the two types of two-wheeler insurance:
|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|
Step 02: Enter Your Two-Wheeler Details:
To know the premium rates for your bike, you should enter your vehicle's registration number. If you can’t remember the number, you can enter the make, model, and variant of your bike. For instance: If you have a Hero Passion Pro 110 CC, 'make' will be the brand i.e Hero, 'model' will be the item i.e Passion Pro while 'variation' will be '110 CC'.
PRO TIP: The premium amount for two-wheeler insurance is directly related to the brand and engine capacity (in CC) of your vehicle.
Step 03: Compare Quotes:
This is the most important step of your time in the two-wheeler insurance renewal process. Before choosing the same insurance provider, make sure you compare the benefits, services, and offers provided by other insurers. You can visit an online insurance broker or aggregator to get all the information you need in one place. It is important to take into account your Insured Declared Value (IDV), additional Add-on choices, benefits, and the incurred claim ratio when shortlisting your insurer.
Step 04: Select the Policy Term:
Your last step is to pick the policy term. You can either settle for a one-year insurance plan or invest in a multi-year plan. Under a multi-year plan, your bike will be insured for a maximum of three years. You don't need to renew your two-wheeler insurance every year. These plans help you save at least 15-20% on the third-party premium amount as it is mostly observed that there’s an annual hike in TP premium by IRDA.
PRO TIP: As per the Supreme Court's order, a five-year upfront Third Party Liability cover is necessary for bikes. This order is enforced on all bikes bought on and after 1st September 2018.
Step 05: Invest in Add-on Covers:
Add-on Cover lets you ride your bike with zero worries. They provide an extra layer of financial protection for your two-wheeler. Since they are not mandatory, Add on Covers are only available with Comprehensive Cover. They can easily be added before checking out. Choose the appropriate Add-on Covers based on your requirements. Some common covers are Zero Depreciation Cover, Personal Accident Cover for Pillion, Engine and Gear-box Protection Cover, etc.
Step 06: Pay the Premium Amount:
After you have decided your two-wheeler insurance provider, you can renew your policy simply by paying the premium amount. The transaction is like any other e-commerce websites. You can use net banking, payment gateway or your credit or debit card to complete the payment. All these modes of payment are 100% secure.
Advantages of Renewing Two Wheeler Insurance Online
- Paperless Transaction: Since everything happens on the web, there is no paperwork involved. You just need to upload scanned images of the necessary documents at the time of renewal.
- No inspection: If you have been a safe rider with no history of claims, you can skip the inspection and directly renew online.
- 24*7 Customer Support: Emergency can happen at any point, therefore it is important to be prepared. When renewing online, you can use the 24*7 customer assistance service.
- Smooth Transfer of Insurer and No Claim Bonus (NCB): If you decide to change your insurer at the time of renewal, or have changed your bike, you can transfer your No Claim Bonus (NCB) almost instantly.
- No Loss of Documents: Unlike offline, renewing your two-wheeler insurance online ensures there will be no mismatched or lost documents. You will also receive a copy on your registered email ID within minutes of payment.
If you are renewing for the first time, the online process may seem confusing. But don’t worry, most digital platforms are designed to have a user-friendly experience. You can make use of the filters and comparison tools to research and compare before renewing. It is also a good idea to check the social media and website of the insurance provider you are finalizing to get an idea about their service quality.