Two Wheeler Insurance

Two Wheeler Insurance

Two wheeler insurance/Bike Insurance refers to an insurance policy, taken to cover against any damages that may occur to your motorcycle / two wheeler due to an accident, theft, or natural disaster. 2 wheeler insurance provides protection against third party liabilities arising from injuries to one or more individuals. Bike insurance is an ideal solution to meet financial costs & losses that may arise due to the damages caused to the motorcycle. The bike insurance cover provides protection to all types of two wheelers like motorcycle, moped, scooty, scooter.

What is Bike Insurance?

Bike insurance policy is a contract between the insurer & the bike owner in which the insurance company provides financial coverage to your bike against any loss or damages due to an accident. As per the Motor Vehicle Act 1988, third party bike insurance is mandatory in India. Bike insurance covers you from any accidental injuries caused while driving a two wheeler / motorbike on Indian roads. Buy or renew two wheeler insurance online upto 3 years within 30 seconds to avoid paying a fine of Rs. 2,000.

Types of Bike Insurance Plans in India

Broadly, there are generally two types of two wheeler insurance policies offered by insurance companies in India. You can buy Third Party bike insurance and Comprehensive bike insurance. See below for more information:

Third Party Bike Insurance
  • As the name suggests, a third party bike insurance that safeguards the rider against all the legal obligations that arise out of causing damage to the third party. The third party, here, can be property or person. Third-party bike insurance covers you against any liabilities that you’ve landed upon yourself for causing accidental damages to someone else’s property or vehicle. It also covers your liabilities towards causing accidental injuries to a third party person, including his death.
  • Indian Motor Vehicle Act, 1988 mandates anyone who owns a two wheeler, be it motorcycle or scooter, to have valid third party bike insurance if playing on public roads in the country. Those who do not comply with the rule will be liable to pay huge penalties.
Comprehensive Bike Insurance
  • Comprehensive bike insurance that protects the rider against any own damage to his vehicle in addition to the third party legal liabilities. It shields your bike from incidents of fire, natural calamities, theft, accidents, man-made disasters and related adversities. It also provides you with personal accident cover in case you sustain any accidental injuries while riding your bike.

The following table illustrates the common difference between both comprehensive & third party bike insurance:

Factors\Types of Bike Insurance Plans Third Party Bike Insurance Comprehensive Bike Insurance
Scope of Coverage Narrow Wider
Third Party Liabilities Covered Covered
Own Damage Cover Not Covered Covered
Personal Accident Cover Not Available Available
Premium Rate Lower Higher
Mandatory of Law Yes No

Benefits of Two Wheeler Insurance

Anything can happen while riding a two wheeler / motorcycle, scooter, or moped. The lack of good roads, the morning and evening rush hours and unregulated traffic problems are a part of life today. Moreover, instances of rainfall or heat waves may cause many problems on the road, such as slippery surfaces, mushy or muddy areas, or sticky tar. These situations may cause damages to the two wheeler vehicle and even injure the riders. To stay protected from all such incidents, it is important to have a valid two wheeler insurance. The motor protection laws in India protect millions of bike owners from expenses that may arise due to third-party damages by making third party bike insurance cover mandatory.

Let’s take a detailed look at the various benefits of buying two wheeler insurance:

  • Financial Protection: Two wheeler insurance provides financial cover that helps save a lot of money in case of an accident, theft or third-party liabilities. Even small damage can cost thousands of rupees. This bike insurance policy helps you get the damages repaired without creating a hole in your pocket.
  • Accidental Injuries: Not only does the policy cover damages sustained by of your vehicle in an accident but also covers any accidental injuries that you may have suffered.
  • All Types of Two Wheelers: It protects against the damages caused to the scooter, motorcycle, or moped. Even the vehicles have been improvised and are available with features like better mileage, power, and style.
  • Cost of Spare Parts: The rising demand for motorcycles in India has led to the rise in its cost along with the increased cost of their spare parts. This two wheeler policy covers the cost of spare parts, including simple nuts and bolts or parts such as the gears or the brake pads, which have become costlier than before.
  • Roadside Assistance: At the time of policy purchase, you can opt for roadside assistance that will come to your aid in case you need assistance on the road. This includes services such as towing, minor repairs, flat tyre, etc.
  • Peace of Mind: Any damage to your vehicle can lead to huge repair charges. If you have two wheeler insurance, your insurer will take care of the unwanted expenses, giving you peace of mind so that you can ride without any cause for worry.

Key Features of Bike Insurance Policy

Two Wheeler Insurance Buying GuideTwo wheeler insurance market has changed dramatically since the emergence of new players. Two wheeler insurers nowadays have come up with a range of features to woo customers and ensure they continue with them year after year. Today, buying a bike insurance online over the internet is a hassle-free and quick easy process. Let us take a look at some of the key features of two wheeler insurance plans:

  • Comprehensive and Liability Only Coverage: The rider has the option of choosing the comprehensive or liability-only policy. The liability-only policy is required under Indian Motor Vehicle law and each rider needs to have at least that. On the other hand, a comprehensive two wheeler insurance cover also protects against damages caused to the insured vehicle and provides personal accident cover for the co-riders (generally as an add-on cover) in addition to third party bike insurance cover.
  • Compulsory Personal Accident Cover of Rs. 15 Lakh: Bike owners now can avail personal accident cover of Rs. 15 lakh under their two wheeler insurance policy as an inbuilt feature. Earlier it was Rs. 1 lakh, but recently, IRDA has increased the cover to up to Rs. 15 lakh and made it mandatory.
  • Optional Coverage: The additional coverage is offered at an extra cost but goes a long way to ease the process of filing claims by providing extra cover. It includes personal accident cover for pillion riders, enhanced cover for spare parts & accessories, zero depreciation cover and so on.
  • Easy Transfer of No Claim Bonus (NCB): The NCB discount can be easily transferred if you buy a new two wheeler vehicle. The NCB is given to the rider/driver/owner and not to the vehicle. The NCB rewards a person for safe driving practices and for not making any claims in the earlier year(s).
  • Discounts: IRDA approved insurers provide several discounts, such as a discount for having membership of a recognized automotive association, discount for vehicles that have approved anti-theft devices, etc. Owners with an unblemished record also receive concessions via NCB.
  • Quick Registration for Internet Purchase: Insurers offer online policy purchase or policy renewal through their websites and sometimes even through mobile apps. This makes it easy for the policyholder to get their needs fulfilled. Since all prior policy claim or additional details are already in the database, the process is quick and highly convenient for the customer.

Add On Covers for Two Wheeler Insurance Policy

Two wheeler insurance add-on covers refer to the additional covers that enhance the coverage of your two wheeler policy on the payment of an extra amount of premium. Following are the various add-on covers that you can opt for your motorcycle or scooter:

  • Zero Depreciation Cover: An insurer pays the claim amount after deducting the depreciation value of your bike. Zero depreciation cover eliminates any deduction on the account of depreciation at the time of claim settlement and the full amount will be paid to you.
  • No Claim Bonus: No claim bonus (NCB) is applicable only if no claims are made within a policy term. NCB Protect allows you to retain your NCB and get a discount during renewals even if you make any claim during your policy tenure.
  • Emergency Assistance Cover: This cover enables you to avail emergency roadside assistance from your insurer. Most insurers offer a range of services under this cover including tyre changes, minor repairs on-site, battery jump-start, towing charges, lost key assistance, replacement key and fuel arrangement amongst others.
  • Daily Allowance Benefit: Under this benefit, your insurer will provide you with a daily allowance for your travel when your insured vehicle is under repairs at one of its network garages.
  • Return to Invoice: At the time of total loss, your insurer will pay the Insured Declared Value (IDV) of your bike. Return to invoice cover bridges the gap between the IDV and the invoice/ on-road price of your vehicle, including registration and taxes, allowing to get the purchase value as the claim amount.
  • Helmet Cover: This cover enables you to receive an allowance from your insurer to get your helmet repaired or replaced in case it was partially or totally damaged in an accident. In case of replacement, the new helmet should be of the same model and type.
  • EMI Protection: As part of the EMI protection cover, your insurer will pay the EMIs of your insured vehicle if it is getting repaired at an approved garage following an accident.

What is Covered Under Two Wheeler Insurance Policy?

If you are planning to buy or renew two wheeler insurance policy for your bike, you must look into the inclusions offered by two wheeler insurance companies. If you are a bike lover, then you might be met with road accident at any time. Our bike insurance policy covers owner of the bike & third party damages as well. See below detailed list of inclusions:

  • Losses & Damages Suffered Due to Natural Calamities: Any loss or damage caused to the insured vehicle due to natural calamities, such as lightning, earthquake, flood, hurricane, cyclone, typhoon, storm, tempest, inundation, hailstorm, and landslide and rockslides among others will be covered.
  • Losses & Damages Suffered Due to Manmade Calamities: It offers coverage against various manmade calamities, such as riot, a strike by outside means, malicious act, terrorist activity and any damages caused in transit by road, rail, inland waterway, lift, elevator or air, among others.
  • Own Damage Cover: This cover safeguards the insured vehicle against any loss or damage caused by the means of natural calamities, fire & explosion, manmade calamities or theft.
  • Personal Accident Coverage: A personal accident cover of up to Rs. 15 lakh is available for injuries to the rider/ owner that may result in temporary or permanent disabilities or loss of limb- that causes partial or total disability. The cover applies when the person is travelling, mounting or dismounting from the vehicle. The insurers offer optional personal accident cover for the co-passengers.
  • Theft or Burglary: Two wheeler insurance will provide compensation to the owner in case the insured motorcycle or scooter gets stolen.
  • Legal Third-Party Liability: It offers coverage for against any legal loss of money that may occur due to injuries to a third party in the surroundings, which may have even lead to his demise. Similarly, it also protects against any damage caused to any third party property.
  • Fire & Explosion: It also covers any losses or damages caused due to fire, self-ignition or any explosion.

What is Not Covered Under Two Wheeler Insurance Policy?

Below are the incidents or situations which are excluded under bike insurance policy:

  • Damage caused by normal wear and tear of the vehicle
  • Loss from mechanical/electrical breakdowns
  • Depreciation or any consequential loss from regular use
  • Any damage to tyres and tubes in the normal course of running
  • Any loss incurred while the bike was being used beyond the scope of coverage
  • Damage/ loss incurred when the bike was being driven by a person without a valid driving license
  • Any loss/ damage caused due to the driver being driving under the influence of alcohol or drugs
  • Any damage/ loss incurred due to war or mutiny or nuclear risk

Documents Required for Filing a Claim for Your Two Wheeler:

Here is a list of documents that you need to submit at the time of filing a claim with your insurer:

  • Duly signed claim form
  • Valid copy of Registration Certificate or RC of your bike
  • Valid copy of your driving license
  • Copy of your policy
  • Police FIR (in case of accidents, theft and third-party liabilities)
  • Repair bill and payment of receipt in original
  • Proof of release

10 Factors Affecting Two Wheeler Insurance Premium

Several factors determine the premium of your bike insurance policy. Check out the list of top 10 factors that affect your two wheeler insurance premium:

  • Coverage: The level of coverage of your policy largely affects your premium amount. You will pay a lesser amount for third party liability plan as compared to a comprehensive plan that will provide wider coverage and hence, will attract a higher premium.
  • Insured Declared Value: The Insured Declared Value (IDV) is estimated by finding the market value of your vehicle. If the market value is lesser, so will be the IDV fixed by your insurer. As a result, you will end up paying a lower amount of premium.
  • Age of the Vehicle: The age of your bike is inversely proportional to its market value or IDV due to depreciation. Therefore, the higher the age of your vehicle, lesser will be the premium amount that you will be required to pay.
  • Make & Model of the Bike: Basic models attract a lower level of coverage leading to lower premiums. On the other hand, a high-end bike will require a wider range of coverage, thereby, attracting a higher amount of premium.
  • Installed Security Device: If you have installed security devices to enhance the safety of your vehicle, your insurer will offer you a lesser premium amount.
  • No Claim Bonus: No Claim Bonus or NCB enables you to receive a discount on your premium at the time of renewal if you have not made any claims. Thus, NCB reduces the premium that you are required to pay.
  • Geographic Location: The place where you will be riding your bike affects your premium as certain places, such as metropolitan cities, have higher risk exposure. The premium amount will increase as the level of risk exposure rises.
  • Age of the Insured: The age of the insured also determines the premium rate. Younger riders are believed to have higher risk exposure as compared to middle-aged riders. Hence, more the age of the insured, lesser will be the premium amount that you’ll have to pay.
  • Deductible: If you opt for the voluntary deductible, your insurer will offer you a discount on your premium reducing the overall amount to be paid.
  • Engine Cubic Capacity (CC): Engine CC is directly proportional to your premium rates. This means higher engine CC will make you pay a higher amount of premium.

Frequently Asked Questions on Two Wheeler Insurance

  • What documents should I submit to get discount on two wheeler insurance on the basis of my age and occupation?

    To avail discounts on the basis of your age and occupation, you would need to submit Pan Card and employment or education certificate respectively.

  • Can I replace a new vehicle in my current two wheeler insurance policy?

    Yes, you can replace your new vehicle in your existing insurance policy. Call the insurance company to make changes effective.

  • Can I cancel the policy during the tenure of the policy?

    Yes, you can cancel the policy during its term, provided you submit documents to prove that your vehicle has been insured elsewhere or the registration certificate of your vehicle has been cancelled by the Regional Transport Office (RTO). Once the policy is cancelled, the insurer will refund the remaining amount, after deducting the premium for a period in which coverage has been given. The refund is possible only if there has been no claim during the policy tenure.

  • Why should I buy comprehensive insurance policy when law mandates only third party, injury, and death or property loss?

    Although, as per law it is compulsory only to buy third party bike insurance it is strongly advised to purchase a comprehensive policy to protect your vehicle from both man-made and natural calamities. By buying the comprehensive cover, you can claim from your insurer for accidents or damages caused to the vehicle. Without comprehensive cover, the entire responsibility to pay the bill comes on your shoulder. Thus, by opting for a comprehensive insurance policy, you can get complete peace of mind that whatever happens to your vehicle, the insurer will share your financial burden.

  • Is Two-Wheeler Insurance Mandatory for Five Years?

    After September 2018, the Insurance Regulatory and Development Authority of India (IRDAI) has stated that all the new two-wheelers must be insured for up to five years with at least a third-party insurance cover.

  • Can I get NCB on the expired insurance policy?

    You can get NCB on the expired insurance policy only if you renew it within 90 days of the its expiry date

  • What is a No Claim Bonus (NCB) in Two Wheeler Insurance?

    The bonus received by the policyholder when he has not made any single claim in policy tenure is called two wheeler insurance no claim bonus (NCB).

  • What is the tenure of policy?

    Two wheeler insurance policies for a longer duration, for 3 to 5 years. And all the motorcycles or scooters that will be sold after Sept 01, 2019, shall be issued a long-term third-party insurance policy. The claim process can be quite tedious.

  • What is the endorsement in two-wheeler insurance?

    The term endorsement with reference to two-wheeler insurance refers to an agreement that is documented proof of any changes in the policy terms. This document is a valid proof of the changes in policy. The endorsement, typically, is of two types – Premium Bearing and Non-premium Bearing.

  • What to do if my motorcycle is lost or stolen?

    In this case, you need to visit the nearest police station to lodge an FIR against the lost or stolen vehicle. You also need to inform your insurer about the incident in order to file a claim, which requires you to submit certain documents with a copy of the FIR attached.

  • How is the two wheeler insurance premium affected?

    The premium payable for your two wheeler insurance policy is subject to its age and several other factors. This means that the IDV (Insured Declared Value) of your vehicle decreases with its increasing age and the premium payable for the same is also lowered.

  • Do we get personal accident cover within bike insurance policy?

    Yes, you get a personal accident cover of Rs. 15 Lakh with your bike insurance policy if it’s a comprehensive two wheeler insurance policy.

  • What is Long Term Two Wheeler Insurance?

    A long term two wheeler insurance policy is a multi-year insurance policy for your vehicle, which has a validity of 2 to 3 years. The primary benefit of a long-term two wheeler insurance policy is that you don’t have to recharge it annually (i.e. after 12 months) and the IDV and third-party liability of the vehicle remains intact over the policy term.

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