Two Wheeler Insurance
Two wheeler insurance refers to the type of insurance policy that offers coverage against any damage caused to a two-wheeler and/or its riders arising due to some unforeseen event such as road accidents, theft or natural disaster. It also provides protection against third-party liabilities that may arise due to bodily injuries or damages caused to a third-party individual or property.
Two-wheeler insurance is an ideal solution to meet the ever-so-inflated repair costs that may arise due to the damages caused to the insured two-wheeler vehicles. In addition, insurance policy for bike provides protection to all types of two-wheelers including motorcycles, moped and scooters, and are available for all two-wheeler vehicles used for both, personal or commercial use.
Why is Two Wheeler Insurance Important?
One of the major reasons to own two wheeler insurance is to ensure protection against third party liability. Moreover, the Indian Motor Vehicles Act makes it mandatory for all bike owners to have bike insurance, at least third party insurance, without which one can’t ride a motorcycle. Considering the rising number of accidental cases, bike insurance is essential to ensure the utmost financial protection. Apart from the liability coverage, 2 wheeler insurance comes in handy in covering the following:
- Loss or damage of vehicle caused due to natural calamities such as earthquake, or flood, fire, self-ignition or lightning etc.
- Loss or damage of vehicle due to man-made calamities, burglary, theft, strike, malicious acts.
- Personal accidental cover for owner-driver/riders
Key Features of Two Wheeler Insurance
Two-wheeler insurance market has changed dramatically, thanks to the emergence of new players in the market. Nowadays, bike insurance companies have come up with a range of features to woo new customers and retain old ones. In this regard, below are the common features of two wheeler insurance:
- Two wheeler insurance protects the insured vehicle against loss or damages sustained due to man-made or natural calamities
- Third party bike insurance is mandatory in India, where insurance coverage is provided against legal liabilities
- Bike insurance online is the most convenient and the safest way of buying motorcycle insurance.
- The policy is easily transferable in case of switch of the insurer
- No claim bonus is an alluring benefit offered under own-damage cover, where the insured is rewarded for not claiming the insurance. The NCB bonus can be earned up to a certain percentage in terms of discount in the policy premium or increase in the sum insured.
- Quick settlement of claims, instant policy purchase, online renewal etc. are some of the basic features of this plan.
Types of Two-Wheeler Insurance Policies:
Typically, there are two different types of two-wheeler insurance policies available at the disposal of insurance seekers in India:
Comprehensive Two-Wheeler Insurance
Also called first-party two-wheeler insurance, comprehensive two-wheeler insurance plan offers coverage against all types of damages caused to the insured vehicle and its owner/rider.
The comprehensive two wheeler insurance, as the name suggests, provides total cover for the two-wheeler and the insured. The list of coverage include:
Protects from Loss/Damage Caused to the Vehicle
Any damage that is caused to the insured vehicle due to man-made disasters or due to natural calamities is covered. The insurer will compensate for the loss suffered by the insured and gets it back running into its original condition. Most insurance companies offer additional covers or optional features to be considered in order to enhance the basic coverage.
Personal Accident Cover
It offers a personal accident cover up to Rs. 15 lakh in case of accidental injury leading to partial/total temporary or permanent disability and death. The Indian motor insurance providers offer the optional benefit for adding co-passengers as well.
Coverage against Third Party Liability
It covers legal liabilities arising due to:
- Third-party Death or bodily Injury: It protects the policyholder against any liability arising due to 3rd party injury or death, where the insured vehicle remains at fault. At times injuries may result in hospitalization, cause temporary or permanent damage or partial or total disability such as loss of limbs or eyes. The liability amount to be paid by the insured will be covered.
- Damages to Third Party Property: The insurance companies cover third-party property damage up to a specified limit as defined under the policy document.
Third-Party Liability Only Policy
The two-wheeler liability insurance policy only covers the policyholder against legal liabilities arising out of injuries caused to a third-party, property damage or death from the insured 2-wheeler. As the name suggests, the policy doesn’t cover the insured vehicle or any damage/loss sustained by it.
Most motor insurance providers in India also provide a personal accident cover for the owner of the motorcycle, moped or scooty. As per the new IRDA’s rule, all the motor insurance providers will offer multi-year (up to 5 years) third-party insurance cover to all the two-wheelers that are purchased after Sept 01, 2018.
Best Two Wheeler Insurance Plans in India
See Best Plans
With plenty of insurance providers introducing a range of two wheeler insurance policies, finding the right type of cover can be confusing. As bike insurance is an important part of one’s financial portfolio, ensuring the best policy matters a lot. In this regard, we have compiled a list of top two wheeler insurance plans in India to be considered:
Disclaimer- As updated, the ranking of the insurance companies in this content is not in any particular order. The list is not compiled as per the IRDA ranking.
Benefits under Two Wheeler Insurance in India
Apart from the basic coverage to the insured vehicle, a two wheeler insurance policy comes with the following additional benefits as well:
Instant Policy Issuance
Gone are the days when we had to wait for a long to get the policy document, as it was sent to the registered mailing address by post. But, with the advancement of technology, nowadays digitally signed policy can be issued, where the insured can avail the policy instantly mailed to their email Id. online 2 wheeler insurance is the most convenient way of availing insurance coverage.
Add-on Covers
Access to add-on covers is another benefit that boosts the basic policy coverage. Among the add-on covers, it includes personal accident cover for pillion riders, enhanced coverage for spare parts and accessories, zero depreciation cover, road-side assistance and so on. The additional coverage is generally offered at an extra cost but goes a long way to ensure extensive coverage in case of an unforeseen or unfortunate event.
No Claim Bonus (NCB)
The insurance providers offer an NCB benefit to the policyholder for not claiming two wheeler insurance during the policy tenure. The NCB ranges from 20% to 50% up to a maximum of 100%, depending on the type of plan.
Discounts
IRDA of India approved insurers to offer certain discounts on premiums considering certain factors such as if the insured is a member of Indian Automobile Association if the vehicle is protected through an anti-theft device if the owner/driver has a smooth driving record etc. Moreover, insurers offer additional discounts with online two wheeler insurance.
Online Policy Renewal and Claim Registration
Almost every insurance provider has made its products and services available online. This further makes it easy for the policyholders to avail the post-sale services. With online bike insurance, one can easily claim or renew the policy online and save time. Moreover, scooter insurance online ensures the most affordable and extensive plan within your budget.
Ensures Peace of Mind
Apart from the offered coverage, two-wheeler insurance policy offers much-needed peace of mind. Motorcycles are the most popular among youngsters and middle-class people. Whether it is Jammu and Kashmir or Andaman and Nicobar Islands, millions of people use their motorcycles to commute or to wander, for work or to run errands. For them, their motorbike, scooter, or moped is a means of their daily commute. Even small damage to their precious vehicle will mean rearranging the monthly budget to save on the costs incurred. This policy works wonder for them. It gives them peace of mind as they don’t have to worry about how to pay for the expenditure. The insurance company will take care of these expenses leaving the insured in a complete relaxing state of mind.
Add-on Covers of Two Wheeler Insurance
Get Best Comprehensive Policy
Add-on covers help the insured to be prepared fully for the uncertainties while on road and offers complete protection to the set of wheels. However, these covers can be availed with comprehensive insurance at an additional cost. Some of the basic add-on two wheeler insurance covers include:
Zero Depreciation Cover
This cover helps the insured get the complete value of the vehicle in case of damage. Usually, the value of a bike depreciates over a period. Due to the depreciation, the cost of plastic, metal, rubber, nylon etc. It is not covered fully by the insurer while deciding the IDV. The depreciation can range from 5% to 50% as per the age of the vehicle. With zero depreciation cover, the full market value of the vehicle can be availed at the time of claim.
Accessories Cover
This cover helps to cover the high-end electrical and non-electrical accessories studded in the two-wheeler.
Consumable Cover
No insurance provider covers the cost of consumables such as nuts and bolts, engine oil, lubricants etc. By covering them additionally, one can save a considerable amount in the hour of need.
Personal Accident Cover for Passengers
Usually personal accident cover for owner or driver is an inbuilt cover under the comprehensive policy, but for covering pillion riders it can be availed as an add-on. The policy covers the pillion in case of accidental injury, disability or death.
What’s Not Covered by Two Wheeler Insurance?
Two wheeler insurance doesn’t cover the insured under below conditions:
- Damage caused by normal wear and tear of the vehicle
- Loss from mechanical or electrical breakdowns
- Depreciation or any consequential loss from regular use, unless it is covered by an add-on
- Any damage to tyres and tubes in the normal course of running
- Any loss incurred while the vehicle is being used beyond the scope of coverage.
- Loss or damage to the vehicle when driven by a person without a valid driving license
- Losses occurring because the driver was driving under the influence of alcohol or drugs
- Any damage caused due to war or mutiny or from nuclear risk
Two Wheeler Insurance Claim Process
Nowadays, most of the insurance companies follow a customer-friendly claim-settlement approach. They offer assistance to the insured to take the motorcycle to the nearest authorized service centre. The motor insurance claim process involves a few simple steps:
- Inform the insurance company and register the claim
- Filing an FIR with the police station in case of accidental injuries/property damage/or theft
- Taking the motorcycle to the garage and submitting the necessary documents with the duly filled claim form.
- As per the applicable terms and conditions, the insurance company bears all the covered expenses and the policyholder has to bear only the expenditure that is not covered under the policy. The policy contains information on the expenses that are excluded.
- Insured can also fill out the motor insurance claim form and attach relevant documents required such as a driving license copy, original bills (if required), and submit it to the insurer by visiting the nearest branch); and get their bike repaired at the network garages.
Two Wheeler Insurance Renewal Process
Two wheeler insurance can be renewed in two ways- online and offline.
Online 2 wheeler Insurance Renewal
To initiate bike insurance renewal online, you can log on to the insurance company’s website and follow the steps for two wheeler insurance online renewal. Makes sure the filled-in data such as personal details and policy details are correct. Keep the current policy with you while you renew so you can refer to it for any details such as policy number and so on.}
Also, keep your debit cards or internet banking details handy so you can furnish the information at the time of making payment. Insurance companies generally generate a digital policy in the PDF format that does not require any person’s signature on confirmation of the premium payment. Save this PDF file in a secured location as you may need it later. Take a print out and keep it with you when you ride.
Offline 2 wheeler Insurance Renewal
Two-wheeler insurance policy can be traditionally renewed by visiting the insurance provider’s nearest office. The process is actually very simple though you will have to find the time to go to the branch. You need to know your policy and vehicle details and fill the same in the application form. In case you want to buy optional riders or add-on covers you can opt for it.
The insurance officer serving you will hand over the new policy immediately after paying the premium by cash, demand draft or debit card. Cheque payments need time to clear and your policy is generally emailed on the official email address subject to cheque clearance.
How to Renew Two Wheeler Insurance Online After Expiry?
Renew Expired Policy Instantly
You can’t afford to carry an expired two wheeler insurance, right? Well, don’t forget to consider its aftermath apart from the extra charges. An inactive policy means you’re no longer covered by the insurer for damages, legal liabilities and the list goes on. These expenses can burn a big hole into your pocket. So, ensure that your policy is in an active state. If you miss renewing your policy, here’s how to opt for two wheeler insurance online renewal after expiry.
You Can Switch the Insurer
If you’re not satisfied with your current insurer, which may have resulted in the delay in renewal (just we guess), you can switch it now. Renewal is the best time to review your policy coverage as well as the insurer. Go shop around, compare and buy the right plan.
Go Online
Online insurance renewal is convenient, fast and safe. Log on to the official website of the insurer, provide some basic details of your bike such as make and model, year of manufacturing, cc capacity etc. Select the type of insurance from the available options and pay bike insurance online.
This way you can renew the lapsed policy easily. However, it is recommended to renew the policy before it expires. As a two wheeler insurance policy saves you from expending a huge amount in case of damage or loss, it is your responsibility to keep a track of every important thing related to your insurance plan. If you want to go with an insurance aggregator, you can consider buying from Policybazaar.com.
Renewing Expired Two Wheeler Insurance on PolicyBazaar.com
In case you forget the renewal due date of your two-wheeler insurance, the policy is considered as break-in policy. It is essential to remember the expiry date and renew the policy before the due date so that the policy doesn’t lapse. Two-wheeler insurance online renewal after expiry can be easy with Policybazaar. The best part is, if you renew your expired two wheeler insurance online, there will be no vehicle inspection.
The benefits that you get on renewing an expired two-wheeler insurance policy through PolicyBazaar are:
- Get your bike or scooty insurance renewed without documentation and inspection
- No extra charges to be paid
- Instant policy issuance
- No previous policy details to be provided for cases where the policy has expired for more than 90 days.
- Online renewal of expired two-wheeler policy is quick and easy.
- Save money through a comparison side-by-side and choose the one that fits your pocket best
- Get assistance from our call centre
Two Wheeler Insurance Comparison
Two wheeler insurance can be a lifesaver in times of need. In addition to protecting against bodily injuries or damages caused to property of first-party/ third-party. Additionally, it also provides personal accident cover. You can easily buy insurance online or offline by approaching an agent or personally visiting the branch office. Nevertheless, the key to ensuring the right policy is ‘comparison’. On PolicyBazaar.com you can compare bike insurance online. You can use online two-wheeler insurance premium calculator to find the premium charged by different motor insurance plans and finally land down on the cheapest two wheeler insurance. There are quite a few things to check apart from the premium when you compare two wheeler insurance:
Type of 2 Wheeler Insurance Coverage
There are a number of two-wheeler insurance companies that offer both third-party and comprehensive insurance plans. A comprehensive plan is recommended for those who are looking for a full-fledged coverage against the risks.
Add-on or Optional Covers
All insurance companies offer add-on covers. These add-ons can be purchased by paying an extra premium. Zero depreciation cover, personal accident cover, emergency roadside assistance, pillion rider cover, medical cover, accessories cover etc. are to name a few.
Benefits and Features Offered
In order to satisfy their users, insurance companies try introducing plans with advanced features and benefits. Insurers are now more focusing on post-sale services as well to keep them happy. For instance, motor insurance companies offer 24/7 helpline, online claim registration, claim tracking, renewal etc. The insured can get in touch with the experts who can guide them in selecting the right policy, assist in policy renewal, transfer of NCB (No Claim Bonus) etc.
*Note- Some motor companies also go an extra mile and ensure that the customer’s do not have to follow up with the repair workshop in case of cashless repairs.
Renewal Process of Two-Wheeler Insurance
Most of the insurers provide online two-wheeler insurance renewal facility. Renewing two-wheeler insurance online is an easy option for everyone. At the time of buying, one should be ardent to compare the renewal process of an insurer and go for the one that offers two wheeler insurance renewal online as well.
Discounts Available
While comparing, it makes sense to opt for companies that offer discounts such as no claim bonus (NCB), discounts to members of a recognized automotive association, installation of anti-theft devices in the and so on. Also, some companies may offer an additional discount for online renewal, purchases made through certain apps or credit card, and NCB for each claim-free year.
Claim Settlement Ratio
Comparing the claim settlement ratio of an insurance company is important. CSR indicates the ability of an insurance company to settle the claims in a particular financial year. The higher the claim settlement ratio, the better it is for you.
How PolicyBazaar Two-Wheeler Insurance Calculator Works?
PolicyBazaar provides you bike insurance calculator that helps you to calculate insurance premium. This way you can get assistance in assessing your insurance requirements and ensure the appropriate option. You just need to fill an online form by providing some basic information. After you fill the basic details about your two-wheeler in PolicyBazaar, calculator form the PolicyBazaar two-wheeler calculator suggests the best options as per your requirements. After that, you can compare bike insurance plans available and opt for the one that suits you the best.
PolicyBazaar two-wheeler calculator premium is calculated based on the following factors:
- IDV of the vehicle
- The cubic capacity of the vehicle
- Zone of registration
- Age of vehicle
Recent Updates on Two Wheeler Insurance in India
Following are some of the recent changes in terms of two wheeler insurance in India.
Increase in Bike Insurance Price
As per the recent hike in third-party bike insurance price list set by IRDA of India, one would have to pay more for two-wheeler bike insurance price for third party cover. While the premium or policy rate of comprehensive insurance is decided based on certain external factors such as bike engine capacity, age, location, gender etc., the price of third party insurance is decided by IRDA itself. And every year it tends to increase. For the financial year 2019-2020, IRDA of India has increased third-party bike insurance premium from 4.44 to 21.11 %. The highest rise of 21.11% is for two-wheelers with engine capacity between 150cc and 350cc.
Two Wheeler Third-Party Insurance Rates
The Insurance Regulatory and Development Authority of India (IRDA) has revised the third-party premium rates for bike insurance. Check out the increased premium prices of 3rd party 2-wheeler insurance in the below table:
