Two Wheeler Insurance

It is generally of two types: comprehensive policy and liability only insurance policy. The Indian Motor Vehicles Act makes it mandatory for all the two-wheelers that ply on public areas to have a minimum of third-party two wheeler insurance policy.

This means that any motor vehicle that is running on Indian roads such as cars, buses, trucks, motorcycles, scooters, mopeds, etc. need to have at least a third-party insurance cover. However, the cost of premium of a third-party insurance policy is comparatively less, and because of this reason most of the people prefer to buy it over a comprehensive policy. Whereas, a comprehensive policy is recommended as it covers you and your vehicle as well. Let's check out the details below:

Comprehensive Two Wheeler Insurance

The comprehensive two wheeler insurance, as the name suggest, provide total cover for the two-wheeler and the insured. It provides four-way insurance:

• Protects from losses due to damages to the vehicle

  Any damage that is caused to the vehicle due to man-made disasters reasons or due to natural calamities is covered. Whatever the reason is the insurer will compensate the damages suffered by the two-wheeler and gets it back running into its original condition. Most insurance companies offer additional covers or optional features that you can opt to enhance the coverage.

• Personal accident cover

  Offer a personal accident cover up to Rs. 1 lakh to insure against any injuries that result in partial or total temporary or permanent disability or even death. The Indian motor insurance companies offer the optional benefit to add co-passenger. Companies also include this cover in their liability only policies.

• Insures against third party liability

  Guard against any cause of action arising due to third-party liability. It covers legal liabilities arising due to:

• Third-party death or bodily injury

  Protect against any damage resulting due to 3rd party injuries or even death. These injuries may result in hospitalization, cause temporary or permanent damage or partial or total disability such as loss of limbs or eyes.

• Damages to third party property

  The insurance companies cover third-party property damage up to a specified limit as defined under the policy document.

Liability Only Policy

The two-wheeler liability insurance policy only covers the policyholder against legal responsibilities arising due to injuries suffered by a third-party/person/vehicle/property from the insured 2-wheeler. As the name suggests, these types of plans do not safeguard against the damages incurred by the insured vehicle.

Most motor insurance companies in India also provide a personal accident cover for the owner of the motorcycle, moped or scooty. As per the new rules, all the motor insurance providers will offer multi-year ( 2 to 3 years) third-party insurance cover to all the two-wheelers that are purchased after Sept 01, 2018.

Motor Vehicle laws mandate that any two-wheeler plying on all public roads in the country should have a minimum of third-party two wheeler insurance policy. Though it is not essential to buy a comprehensive policy, taking into consideration the nature of costs that may arise from a mishap or other man-made or natural disasters makes it essential to have a comprehensive insurance cover.

The motor insurance laws in India protect the millions of vehicle owners from expenses that may arise due to third-party damages, accidental damage, or theft of motorcycle, scooty, or moped.

Anybody who is driving on the Indian roads would have seen the unceasing growth in the number of automobiles in the country. The lack of good roads, the morning and evening rush hours, and unregulated traffic problems are a part and parcel of life today. In addition, events such as rainfall or heat waves may cause problems on the road such as slippery surfaces, mushy or muddy areas, or sticky tar that may cause damages to the vehicle and even injure the riders.

This Policy Helps in a Number of Ways: It protects against the damages caused to the scooter, motorbike, or moped. Even the two-wheelers have been improvised and come with more speed, power, and style. The demand for superbikes makes it all the more necessary to buy a comprehensive two-wheeler policy. It offers protection to the bike owner and all the pillion riders.

These advances also mean the cost of automobiles has gone up along with the cost of their spare parts. Even the simple nuts and bolts or parts such as the gears or the brake pads are now costlier than before. Even a small damage can the cost you thousands of rupees.

As All this can be avoided with adequate two-wheeler insurance policy. These plans will help the insured to get the scooter, motorbike, moped repaired without creating a hole in their pocket. Let’s see what all it covers: Let’s see what all it covers: 

• Damage or Loss to the Insured Vehicle Due to Man-made Disasters

  Insurance companies offer coverage against various man-made disasters, such as burglary, theft, riot, and the strike by outside means, malicious act, terrorist activity, and any damage in transit by road, rail, inland waterway, lift, elevator or air, among others.

• Damage or Loss to the Vehicle Due to Natural Calamities

  Any damage that is caused to the insured two-wheeler due to the following reasons will be covered. These include fire, explosion, lightning, earth-quake, flood, hurricane, cyclone, typhoon, storm, tempest, inundation, hailstorm, and landslide and rockslides, among others.

• Accidental Cover

  Two-wheeler insurance guards against any injuries to the pillion rider and the co-passenger (if it is also there) from an accident. Most of these accidents result in medical costs of some kind or the other. The adverse effects of such costs can be mitigated with personal accident cover.

  They amount of payout depends on the type of damages suffered. In an unfortunate event of the demise of the pillion rider due to a mishap, the full coverage amount is given to the nominees or family members. The amount may be  lesser in case of simple injuries from which the person can recover easily, with or without hospitalization (as mentioned in the document wording or documented wordings).

  Accidents may occur when the person is riding on the vehicle or is mounting from his motorbike, scooter or any other mechanized motorcycle. Check policy wording for more details.

• They Guard against Bodily Injuries to the Third-Party

  The policies guard against injuries caused to third parties due to an accident or damage that was caused by the insured motorcycle or scooter. Compensation for bodily injuries is provided as per the policy wordings or as decided by the court of law.

• They insure against damages to third party property

  Often an accident may result in damages to the property in surroundings. This raises legal responsibilities as the damages will have to be reimbursed by the insured person. Insurance comes to the rescue in such cases as the policy ensures that the insured does not suffer due to the loss suffered by the third party. The plans provide clear definite terms and limitations up to which the insurer will reimburse the affected person.

  Nearly all of these damages are settled through legal proceedings that ensure all actions are taken in strict accordance with the law of the country, and all causes and reimbursements are addressed in the manner prescribed under the statutes. The strict terms and conditions ensure that the insured does not suffer any loss due to events beyond their control, and the third party also receives the necessary compensation due to the loss suffered by them.

• They offer peace of mind

  Motorcycles are generally purchased by young men and women and by the middle-class people in India. Whether it is Jammu and Kashmir or Andaman and Nicobar Islands, millions of these middle-class Indians use their motorcycles to commute from one place to another, for work or otherwise. For them, their motorbike, scooter, or moped is a means of their daily sustenance.

  Even a small damage to their precious vehicle will mean rearranging the monthly household budget, and foregoing small pleasures to save on the costs incurred for repairing the motorbike. This policy works wonders for these people. It gives them a 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 for them, and they can ride easy, without any cause for worry.

There is a detailed list of inclusions and exclusions – whether natural or man-made. These are generally detailed in the annexure of the policy documents.

Inclusions in Two Wheeler Insurance Policy

• Natural Events

  The natural events that are included within the features covered include fire, self-ignitions, earthquakes, floods, inundations, lightning, hurricanes, storms, cyclones, hailstorms, tempests, typhoons, frost, and rockslide.

• Man-Made Events

  These plans offer a range of man-made causes such as accident by external means, burglaries, thefts, riots or strikes, any in-transit damage when the vehicle is being transported from one place to another by roads, railways, inland waterways, lifts (elevators) or by air.

• Personal Accident Coverage

  A personal accident cover of up to Rs. 1 lakh is available for injuries to the driver/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 two-wheeler. Insurance companies also offer optional personal accident insurance for the co-passengers.

• Legal Third Party Liability

  This covers against any legal loss of money that may occur due to injuries to anyone in surroundings, which may have even led to the death. It also protects against any damage to a third party.

Exclusions in Two Wheeler Insurance Policy

• Damage caused by normal wear and tear of the vehicle

• Loss from mechanical or 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 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 can be a lifesaver in times of need. In addition to protecting against accountabilities due to injuries to the person or their property or collateral, it also provides an accident cover and insurance against  damages caused to the two-wheeler. You can easily buy insurance online or from the offices of the agent or insurance company. 

Web sites like PolicyBazaar are a good place to compare insurance online. You can use online two-wheeler insurance premium calculator to find the premium that you need to pay for different plans provided by the motor insurance companies. There are quite a few things to check apart from the premium:

• Type of 2 Wheeler Insurance Coverages

  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-proof coverage against the risks.

• Add-on or Optional Covers

  All insurance companies offer add-on. These add-ons can be purchased by paying an extra premium. Add-on covers include zero depreciation cover, personal accident cover, emergency roadside assistance, pillion rider cover, medical cover, and accessories cover. They insured only needs to pay the premium for the service charges and taxes in terms of cashless claim settlement. The rest of the costs are met by the insurance company at cashless network garages.

• Facilities and Features Available

  Most of the motor insurance companies have become quite customer savvy and offer various features and benefits to help the consumers in their claim process. For instance, they will have a 24/7 call center that operates round the clock, experts who can guide , people, to select the right policy, assist in policy renewaltransfer of NCB (No Claim Bonus).Most insurers provide concessions for members of recognized vehicle associations or for the inclusion of theft-proof devices.

  Some motor companies also go the extra mile and ensure that the customer’s do not have to follow up with the repair workshop  in case of cashless repairs.

• 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 center. The motor insurance claim process involves a few broad steps, such as calling the insurance company for registration of the claim, filing an FIR with the police station in case of injuries/property damage/or an accident, taking the motorcycle to the garage and submitting the necessary documents with the claim form.

  In most instances, the insurance company bears all the expenses and the owner has to bear only the expenditure that is not covered under the policy and service charges and tax is extra. The claim process can be quite tedious In most, cases, the insurance company’s website should contain the information. Otherwise, you can always refer to PolicyBazaar to get the necessary information online.

  Customers can also fill out the claim form for motor insurance claims directly and submit it to the insurer by visiting the  nearest branch, thereby attaching documents required, such as a driving license copy, original bills (if required), and get their bike repaired at the network garages.

• Renewal Process

  Most of the insurers provide online  two-wheeler insurance renewal facility. Buying online two wheeler insurance is an easy option for everyone. Also, the companies that offer electronically signed plans are much better, as you can simply (renew when required) and print it from the site and keep the RC and other necessary documents  while riding the two-wheeler.

• 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.

  Most of the companies also offer significant concessions on additional covers. Before making the purchase it is important to check the website for details.