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What is Two Wheeler Insurance?
Even the most careful drivers might not always be able to avert an accident. When out on the road, damage to vehicles can be a common problem. While some damages can be minor and easily repairable, some may attract hefty expenses. In order to aid you in managing the financial expenses of repairing your bike, a two-wheeler insurance policy is required. A two-wheeler insurance policy is an agreement between the vehicle owner and the insurance company. The policyholder has to pay the premium and in return, the insurer is obliged to cover the admissible costs of the insured vehicle.
In India, there are broadly three types of two-wheeler insurance policies:
- Third-party liability bike insurance
- Comprehensive bike insurance
- Standalone own-damage bike insurance.
Depending on the requirements and preferences of the bike owner, a bike insurance policy is purchased. While some prefer only a third-party liability to cover the legal formalities, others may prefer an all-around coverage with a comprehensive plan. Standalone own-damage bike insurance is a preferred plan by those who already have purchased a third-party liability cover but also wish to cover their own damage.
Comparing different plans online before purchasing one is essential to get your hands on the most suitable plan for your bike. The location of your bike, the associated risk, premium budget, and frequency of riding the bike are some important factors that play a major role in deciding your ideal two-wheeler insurance policy. This article will provide you with a comprehensive guide to choosing the best plan for your two-wheele
Why Do You Need Two Wheeler Insurance in India?
A two-wheeler insurance policy helps you cope with different types of road mishaps and related financial burdens. Here are some of the reasons that necessitate the need for a bike insurance policy:
- Abide by the law:
The Motor Vehicle Act, 1988 mandates every motor two-wheeler to have at least a third-party liability insurance policy. Hence, to drive legally on the roads of the country and avoid any unnecessary penalty, you must have a two-wheeler insurance policy. Depending on your needs, you can either go for a basic third-party plan or a comprehensive plan for all-around coverage.
- Coverage against financial loss:
Be it a third-party loss or own damage, the repairing costs can sometimes be quite high on your pockets. You may find it difficult to bear such expenses, so having a two-wheeler insurance policy is important. It acts as a financial pillar in case of a mishap. Be it a case of theft, an unforeseen disaster, an accident, etc., a bike insurance policy is there to cover the admissible expenses.
- Coverage against man-made and natural disasters:
Disasters, both man-made and natural, can cause serious and, sometimes, irreparable damages to your vehicle. It is heartbreaking to witness and bear the losses. In case your vehicle is in a condition to be repaired, the insurance company will bear the cost of repair. However, if the bike goes into complete loss, a suitable compensation amount is provided by the insurer.
- Coverage for bike theft:
Coverage for thievery is also a part of the bike insurance policy coverage. In case your bike gets stolen, the insurance company expects you to file a police complaint. In case the bike is not retrieved, compensation is provided to you by the insurer. In case of any damage to your bike, the repair costs are covered by the insurance company.
- Personal accident cover:
The damages during an accident do not always limit themselves to the vehicle or the third party. Some mishaps may also cause fatalities to the bike’s owner/driver. Hence, a bike insurance plan also provides personal accident cover for the bike’s owner.
Documents Required to Buy Two-Wheeler Insurance Policy
In order to purchase a two-wheeler insurance policy for your bike, you need to have certain documents. Check out the pointers below to know what all you need to have before applying for a two-wheeler insurance policy:
- Registration certificate of your bike
- Details of your bike like chassis number, bike number, etc.
- Attested identity proof of the bike’s owner (Aadhar, PAN card, driving license, passport)
- The driving license of the bike owner (attested)
- Passport size photographs.
Things to Consider Before Buying Two Wheeler Insurance Online
Mentioned below are some important facts which you can consider before buying bike insurance online from Coverfox.com and also avail certain additional benefits:
What are the Benefits of Two Wheeler Insurance?
A two-wheeler insurance policy has a lot of benefits for all its customers. Check out the pointers below-
Covers third-party liabilities:
One of the biggest benefits of having a bike insurance policy is that your third-party liabilities are covered. In case you have accidentally caused any damage or injury to a third party property or person, you are liable to pay for their loss. In such a scenario, your insurer will pay the required compensation to the other party. Any legal liabilities that arise will also be taken care of by the insurer.
Financial support during mishaps:
Cover against accidental injuries:
A cover for all types of two-wheelers:
Different types of plans for different needs:
Peace of mind amid mishaps:
Types of Bike Insurance Policies in India:
Even the two exactly same two-wheelers can have different insurance requirements depending on the location, use of the bike, owner’s preferences, etc. Hence, there are different types of bike insurance plans available to suit every need. You must first enlist your requirements and then pick a plan that best suits you. Let us delve deeper into the three major types of two-wheeler insurance policies:
Third-Party Liability Insurance:
As the name suggests, TP or third-party bike insurance is meant to cover only the losses/damages incurred by a third-party person or property done by the insured vehicle. During an accident, if the insured vehicle damages a third party, the cost of repairing the damage is covered by the insurance company. Mandated by the Motor Vehicle Act, having this kind of coverage is important to get coverage for any kind of third-party liability.
Comprehensive bike insurance covers the damages incurred by both parties (insured and third party) due to an accident. It is an all-around bike insurance policy that covers the majority of the admissible costs. Not only does it covers accidental damage, but it also provides
- Protection against theft
- Cover for natural and man-made disasters
- Compensation in case of complete loss of the vehicle
- Financial aid in case of loss due to a fire explosion.
You can also purchase add-ons along with a comprehensive plan to further enhance its coverage. The add-ons require a sum of extra premium but help you get the features that are not included in the base plan.
Standalone Own Damage (OD) Insurance:
A standalone own-damage insurance policy covers only the damages incurred to the insured bike and the policyholder due to any mishap. Any loss due to fire, disaster, accident, or theft is covered in the policy. Those who already own a third-party liability cover and want their own damage cover as well may go for standalone own-damage bike insurance.
Key Features of Having a Bike Insurance Policy
In order to retain customers and foster loyalty, insurance companies offer a wide range of features. Let’s delve into some of the noteworthy features that two-wheeler insurance plans have to offer:
- Third-party insurance or comprehensive insurance:
When it comes to two-wheeler insurance, riders have the choice between a comprehensive or third-party policy. The third-party policy is mandatory according to Indian Motor Vehicle Act, and every rider must have this coverage. However, a comprehensive policy not only provides protection against damages caused to the insured vehicle but also includes personal accident coverage along with third-party cover.
- Simple process of No Claim Bonus (NCB) transfer:
Transferring the NCB discount while buying a new two-wheeler is a simple process. The NCB belongs to the driver/owner, not the vehicle itself, and is offered as a reward for refraining from making any claims in the previous year(s). You can seek an NCB of up to 50 of the upcoming premium.
- Mandatory personal accident coverage of INR 15 lakhs:
Two-wheeler insurance policies include an inbuilt feature where bike owners can obtain personal accident coverage of up to INR 15 lakhs. This coverage has been made compulsory by the IRDAI.
Insurers approved by the IRDA offer several discounts to policyholders. These include discounts for installing anti-theft devices, having no claim records, being a member of any recognised automotive association, etc.
- Online purchase and quick registration:
Insurers provide the option of purchasing or renewing policies online through websites and mobile applications. This makes it extremely convenient and fast for policyholders to fulfil their insurance requirements.
Two Wheeler Insurance Add-Ons
Zero Depreciation Cover
Due to passage of time your bike loses value due to depreciation, which can directly reduce the amount of settlement, at the time of claim. When you purchase a Zero Depreciation Cover you do not have to compromise on the claim amount, as it foregoes the amount of depreciation on the parts made of nylon, plastic and fiberglass. In the event of a claim settlement, the customer receives the full amount due without any deductions for depreciation. It is always advisable to get this add on cover it will help you from any loss in claim, arising from depreciation of your bike or scooter.
No Claim Bonus
The No Claims Bonus Add-on allows you to avail a discount on bike insurance premium for the term where you don’t make a claim on your insurance policy. Not making a claim shows you as a safe driver, and the motorcycle insurance company allows you to avail for No Claim Bonus (NCB) discount at the time of your two-wheeler / bike insurance renewal. The no-claim bonus discount can range anywhere from 20-50% of your own damage premium.
Emergency Roadside Assistance Cover
There can be times where your bike or scooter breaks down in the middle of the road and you will then need to drag the bike to the service center at your own expense, this is where this add-on to your bike insurance protects you. This add-on cover insures you from a variety of unplanned and unforeseen incidents that could lead to a roadside emergency such as towing, lost key assistance, battery jump-starts, replacement keys, and fuel arrangements Tyre changes and small repairs on-site are also included. The add-on is of great benefit if you ride long distances every day, especially on Indian roads.
Return to Invoice
During the claim settlement of total loss, the bike insurance company pays you the Insured Declared Value (IDV) of your bike. Return to Invoice add-on bridges the gap between the IDV of your two-wheeler insurance policy and its current on-road value. This includes taxes, documentation and other related charges as well. What this add on does is provides the policy holder to get an insurance amount as per the price on which the policy was purchased, you will get the entire amount in scenarios where your two wheeler was damaged due to total loss or theft.
Daily Allowance Benefit
In a case where your bike has met a casualty, it might be possible that your bike is left at the network garage for days at a time. In such a case, a Daily Allowance Cover provides you with a daily travel allowance till the time your bike is repaired and released from the network garage.
When you have an EMI protection cover, your bike insurance company shall pay the EMIs for your two-wheeler if the bike is getting repaired at a network garage after an accident.
Engine Protection Cover
The life and power of your two-wheeler depends on its engine. Hence, taking care of the engine is a must. An engine protection cover add-on covers the damage on your engine caused by water ingression or oil leakage, which is usually not covered under the standard two-wheeler / Bike insurance policy.
What is Covered Under Two Wheeler Insurance Policy?
What is Not Covered Under Two Wheeler Insurance Policy?
How to Renew Car Insurance Online with us?
What is the importance of renewing/ reviving your already expired Bike Insurance Policy?
Make sure you renew your plan before it expires. If you fail to renew the two-wheeler insurance policy on time, your policy may expire leading to no coverage for your bike against any mishap. You will not be able to avail of the no-claim bonus if you do not renew the policy within 90 days of policy expiry.
And that’s not all, if caught without valid two wheeler insurance you not only would have to pay a heft fine, but it can also lead to imprisonment. So, do not delay or wait until the last moment and update the policy on time.
How to Save on 2 wheeler Insurance Premium?
There are certain factors that can influence the premium for bike insurance. Taking care of them can result in lower premium rates. Let’s look at some of those factors and understand how to take advantage:
- Compare Plans: The best course of action when purchasing two-wheeler insurance online is to first compare bike insurance plans. Coverfox allows you a detailed comparison of the quotes from the best bike insurance companies. Make a note of the features and coverage provided by the various bike insurance providers, then pick the one that best suits your needs and budget.
- Claim Your No Claim Bonus (NCB): If you choose to renew your two-wheeler insurance or get a new bike insurance plan, make sure to claim your No Claim Bonus (NCB) discount on the premium. In either case, you are eligible to receive an NCB for each year you go without filing a claim, which can drastically lower the cost of your bike insurance, as you can get a premium discount of up to 50%.
- Choose a higher deductible: The deductible is the share that you choose to pay in case a claim is raised. The higher your share, the lower would be your bike insurance premium.
- Drive carefully: Your driving history can also affect your premium. Someone who has a record of reckless driving would be considered a high-risk customer and will be charged a higher premium.
- Install Safety Devices: You can lower your premium by installing safety and anti-theft gadgets that have been certified by the Automotive Research Association of India (ARAI). This step increases the safety of your car and reduces the liability of your insurer.
- Know your Vehicle’s Age: Your bike’s market value or insured declared value drops over time due to depreciation. As a result, the premium you pay also drops.
- Choose Suitable Add-on Covers: Only choose the add-ons that you feel are necessary for your two-wheeler since they add to the cost of your insurance in return for providing extra coverage.
- Renew Your Insurance on Time: The NCB benefit on a bike insurance policy that is set to expire is only good for 90 days after the policy’s due date. Renew your insurance on time to avoid a premium price hike.
Having two-wheeler insurance is a critical part of owning and operating a motorbike or scooter. It not only provides financial protection to the owner but also safeguards them from potential legal liabilities that may arise due to an accident or other damage caused by their vehicle. So, if you are planning to buy a new bike, make sure you invest in the right coverage as well.
Frequently Asked Questions
- You can check the two wheeler insurance status in a number of ways:
- Get in touch with your insurance provider via email or customer care and inquire
- On the website of IIB, which is the Insurance Information Bureau or the VAHAN website, you can enter your vehicle details and check the status
- You can visit your nearest RTO for the same.
Every motorised two-wheeler has to have a minimum of third-party liability insurance. This has been done so that if a rider causes injury/ harm to some other person, compensation should be payable to recompense their loss.
For a copy of your two-wheeler insurance policy, you would have to visit the insurer either online or offline. The online procedure is simple and quick, as you can log in with your details and download a copy of your insurance policy and print it.
Your two wheeler insurance policy number is mentioned on your insurance policy. In case you do not have the policy, you can visit the registered RTO website, enter your bike details and check the insurance number and its status.
A personal accident cover in a two wheeler insurance policy is compensation that is paid out in case the owner/ rider gets severely injured or dies in a motor accident. In case of an unfortunate incident, the cover offers financial support to the injured/nominee.
- When you purchase a second-hand bike, you need to transfer the ownership to your name. You would have to apply for a NOC from the registered RTO. Along with this if the insurance policy still exists, and you want it transferred the previous owner will have to request the insurance company to transfer it to your name. The following documents will be needed:
- Policy papers
- Proof of identity, both parties
- Form 20 and Form 30.
Full coverage is a term used by many, and it refers to car insurance coverage that includes third-party liability and own damage coverage. It is a term often used interchangeably with comprehensive insurance.
A two wheeler insurance company generally offers a grace period of 30 days to renew the insurance. However, remember that if an accident occurs during the grace period, a claim cannot be raised. Also, if you do not renew your expired policy within 90 days, you will lose the acquired NCB, and no claim bonus.
It is suggested that you renew your two-wheeler insurance before it expires. For example, if your policy expires on 24th February at midnight, you should get it renewed a few days before the 24th or definitely on the 24th so that there is no break in the coverage.