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Two Wheeler Insurance

Two Wheeler Insurance Policy in India

More Indians have bought two-wheeler vehicles in the past few years. This has mapped India as the biggest consumer in the worldwide two-wheeler market. As per statistics submitted by the Society of Indian Automobile Manufacturers (SIAM) and details shared by the China Association of Automobile Manufacturers, India has surpassed China as the world’s largest market for two-wheeler vehicles.

As per the provisions of the Motor Vehicles Act 1988, it is mandatory for vehicle owners to buy a Motor insurance policy. This policy is meant to cover the amount that the owner of the vehicle is liable to pay as damages caused to the third party affected by the accident. The damages caused to the third party owing to the vehicle plying on the road may include accidental death, physiological injury or property damage.

Motor insurance includes the concept of two-wheeler insurance that is bought to secure a protective financial cover against any unforeseen damages caused to the owner of the two-wheeler vehicle or its riders owing to any unfortunate event like accident, theft or natural calamities. Having a 2 wheeler vehicle insurance in place means that the insurance company is liable to pay for the damages caused to those involved in the accident. This kind of insurance cover applies to all kinds of two-wheeler vehicles including motorcycles, mopeds, scooters, etc. irrespective of personal or commercial use.

Different Types of Two Wheeler Insurance Plans Available in India

Two wheeler insurance policies in India are available in two types, based on the nature and extent of coverage they offer. These include:-

Third-Party Liability Insurance

This is a mandatory component of any kind of vehicle insurance and is bought to secure against any physical or financial damage to the third party involved in the accident. As evident from its name, neither the policyholder nor the concerned insurance company gains from the fixed coverage amount while buying the policy. The policyholder cannot claim for damage caused to the insured vehicle nor can seek relief for its theft. The coverage amount is fixed and has been determined by the Insurance Regulatory Development Authority of India (IRDAI).

Apart from the compulsion to buy this cover under the Motor Vehicles Act 1988, the importance of this cover is best understood if and when your vehicle meets with an accident with another. In case the property belonging to the other party gets damaged during the accident, then a maximum coverage of Rs. 1,00,000 will be doled out as per the guidelines of the IRDAI. In case of physical injury or death due to accident, the victim can file a case in the court of law seeking adequate monetary compensation or relief.

Not many policyholders are aware of the Compulsory Personal Accident (CPA) cover earlier bundled up with third-party liability coverage. Starting January 01, 2019, the IRDAI has unbundled the former, and henceforth, permitted the insured to buy stand-alone policies, if and when required. The CPA cover is available only to the owner or driver of the vehicle subject to the possession of a valid driving license.

The liability of paying for a separate CPA cover is waived off in the event of any of the following three conditions:-

  1. If the owner or driver of the vehicle has already bought a personal accident cover against death and disability (total or partial) for a capital sum insured (CSI) of Rs. 15 lakhs;
  2. If the owner-driver has already bought a CPA cover from another vehicle insurance company, then buying another CPA cover is not mandatory. This means that as per the current norms if the policyholder chooses to buy a stand-alone CPA policy, the CPA cover initially available with the third-party liability cover will be waived off automatically.

Comprehensive Insurance Cover

As the name suggests, this kind of cover provides total cover against the damages to the vehicle resulting from accident or theft. The policyholder opting for this kind of cover can claim for damages caused to one’s own vehicle, liability to pay for damages caused to the third party involved, theft and personal accident coverage. However, some people prefer to raise the value of their cover by opting for add-on covers too. These add-on covers are optional and are chosen above the basic premium. Motor vehicle owners usually seek these to augment the extent of the insurance coverage, thus, relieving them from unwarranted expenses associated with the vehicle’s repair. However, two-wheeler vehicle owners may opt for only the following kind of cover enough to keep them protected completed.

Zero Depreciation Cover

Depreciation accounts for a major deduction in the value of the two-wheeler vehicle and its damaged parts. Though having a comprehensive insurance cover ensures that the two-wheeler vehicle remains protected against singular and third-party damages, it is not free from the mar of depreciation that results in loss of value of the vehicle over a period. Since the amount of depreciation depends on the vehicle’s age, there are times when policyholders have to bear a major part of the claim made.

However, for policyholders opting for a zero depreciation cover, the insurance company is liable to cover the entire cost of the vehicle and not just a percentage of the amount claimed. This means buying this two-wheeler insurance zero dep cover ensures an added advantage of the insured is able to claim the entire amount with no deduction made towards depreciation.

Best Two Wheeler Insurance Policy Plans Available in India-2019

It is mandatory for two-wheeler vehicle owners to buy 2 wheeler insurance to keep their vehicles covered. However, one must consider paying for two-wheeler vehicle insurance for its benefits and promise of financial cover as opposed to buying it only to comply with existing regulations. Prefer to buy two-wheeler insurance which is best as per your need and budgetary requirements as opposed to choosing it based on peer pressure and preference.

There are a lot of factors involved in choosing from the two-wheeler insurance policies sold by insurance companies in India. Some of the factors may include coverage benefits, premium charges, payment flexibility, discounts on premiums for timely payment, free servicing, efficient customer care service and the amount charged for choosing add-on covers in addition to the basic premium charged. Listed following are some of the best 2 wheeler insurance plans along with their details.

S. No.
2 Wheeler InsuranceAvailability of Third-party liability cover
Number of garages in network
Extent of Personal Accident Cover
(in Rs)
Incurred Claim Ratio
(ICR)
Policy PeriodNo Claims Bonus (NCB) Availability
1New India Assurance Two Wheeler Insurance
Yes125+ Authorised Cashless Garages100,00086.95%1 yearYes
2Royal Sundaram Two Wheeler Insurance
Yes3300+ Authorised Cashless Garages100,00084.99%1 yearYes
3HDFC Ergo Two Wheeler Insurance
Yes4800+ Authorised Cashless Garages100,00084.37%
1 yearYes
4Bharti Axa Two Wheeler Insurance
Yes3500+ Cashless Authorised Garages 100,00081.74%1 yearYes
5Reliance Two Wheeler Insurance
Yes430+ Authorised Cashless Garages
100,00081.47%1 yearYes
6Universal Sompo Two Wheeler Insurance
YesN/A100,00080.66%1 yearYes
7IFFCO Tokio Two Wheeler Insurance
Yes4300+ Authorised Cashless Garages
100,00079.19%1 yearYes
8Bajaj Allianz Two Wheeler Insurance
Yes4000+ Authorised Cashless Garages but not for 2 wheelers 100,00062.20%1 yearYes

For those new to the concept of 2 wheeler insurance, it is important to look at the Incurred Claim Ratio of each company. The Incurred Claim Ratio (ICR) can be arrived as under:-

Incurred Claim Ratio = Net Claims Incurred / Net Earned Premium

The higher value of ICR implies increased ability of the 2 wheeler vehicle insurance company in paying off claims made by the company’s policyholders. However, it is preferable to avoid companies indicating an ICR value greater than 100 percent. Excessive high ICR denotes that the company gives out more in claims than what it collects as premium, thus, affecting its solvency ratio. If the ICR value falls between 50 and 100, this means that the company collects enough premium to give away as claims, if and when required. In addition, it indicates how the insurance company has been able to come up with a quality insurance product but has been successful in marketing the same to its prospective customers and educating them about the kinds of claims available and the importance of making claims only when necessary.

Key Features and Benefits of Buying Two Wheeler Insurance in India

Having a two-wheeler vehicle is more a matter of necessity on Indian roads than a mere matter of pride. However, buying a two wheeler is not enough. Maintaining and securing the same from any unforeseen and unfortunate event is also necessary. While it is mandatory to buy 2 wheeler insurance under the Motor Vehicles Act 1988 for necessary fiscal protection, paying for it ensures more benefits in addition to the existing financial cover. Some of them include:-

Third-party liability cover

The basic element of every two-wheeler vehicle insurance is coverage against third-party liabilities. This explains why the government has mandated the purchase of this cover. Buying this cover means that the policyholder remains financially protected against any payment due to cover the injuries suffered by the third party people or damage caused to their property during an accident. The cost of damages caused may be high. Having this cover in place implies that the insurance company is liable to pay off the compensatory damages. In addition, the insurer also looks after the legal liabilities stemming from the accident.

Personal Accident cover

This is a compulsory cover and has to be bought unbiased of whether the customers have bought only a third-party liability cover or a comprehensive insurance policy that includes both the third-party and own-damage covers. However, it is important to note that the liability portion of the personal accident cover can be availed only by the owner-driver. The owner-driver must have a valid driving license as per the regulations of the Indian Motor Tariff Act.

Cashless Claim

Many two wheeler insurance companies in India offer their customers the value of cashless claim settlement. To ensure ease to their customers, these insurers tie-up with garages that provide repair and maintenance services in case of an accident or damage resulting from natural or man-made calamities. The policyholders avail the benefit of getting their vehicles repaired at any of the garages within the network in the event of any breakdown or untoward accident, thereby, relieving them from spending their hard-earned money on necessary repairs. The charges towards repair are settled between the garage and the insurance company. This ensures that the customers are liable to pay only for the depreciation and the amount included under deductibles.

Reimbursement Towards Repairs

There are times when you might not be in the proximity of the network garage to get your vehicle repaired. In such a scenario, you may consider getting your vehicle repaired at a garage that you choose and pay for the repair work. However, it is mandatory to intimate about the accident to the insurance company prior to getting it repaired. The insurer will appoint a surveyor who verifies the damages caused. Later the policyholders have the option to raise a claim to the insurance company after submitting associated bills and taking care of necessary documentation. The customers may either file the claim at the website of the insurance company or proceed to the nearest branch office for the same. Post verification of details submitted the policyholder, the insurance company will reimburse the amount of the claim to the extent mentioned in the policy documents.

In case of theft, it is important that the policyholder files a First Information Report (FIR) with the nearest police station concerning the same. The policyholder has to wait for the Final Tracing Report (FTR) from the concerned police station before filing the claim with the insurance company. The insurer then processes the claim based on the details submitted. In the absence of the FIR and FTR, the insurance claim made the policyholder may be rejected. While filing the claim for reimbursement of the losses suffered, it is important that the customers submit all necessary documents including bills or receipts, copy of the FIR filed at the police station, insurance documents apart from a copy of the driving license to the insurance company.

Discounted Premiums

Many people misconstrue buying insurance as an unnecessary expenditure. This is, however, a wrong assumption. Premium charges are much less in the second year during the renewal of the two-wheeler insurance policy. This is because policyholders are required to pay discounted premiums only during policy renewal. Moreover, driving safe ensures heavy discounts on premiums as No Claims Bonus (NCB) while applying for renewing the policy irrespective of any two-wheeler vehicle insurance company. Policyholders can start availing the benefit of NCB during the first year of renewal that continues during consecutive years. The discount during first renewal is nearly 20 percent that may go up to 25 percent during the second renewal and can go up to 50 percent during successive claim-free renewal.

Freedom from Penalties

Refraining from buying two wheeler insurance is punishable under law and may result in payment of heavy penalties. Inability to produce a copy of the insurance policy bought may result in fine and imprisonment. However, having insurance in place not only keeps you protected against the imposition of legal fines but keeps you financially protected in case of an unfortunate accident.

Feeling of Security

Nothing costs much when it comes to ensuring security and, thereby, peace of mind. While accidents are at times unavoidable, the resulting financial liability can be daunting. Having an insurance policy for your two wheeler ensures that you have pushed the liability to the insurance company in lieu of nominal premium payments.

Role of WishPolicy As a Reliable Two Wheeler Insurance Calculator

Wishpolicy ensures that you have access to any policy that you wish to pay for. Many Indians continue to be unaware of the nuances of insurance and what it entails. This results in many of them either opting for a policy that they would not require in the long run or paying too much towards premium charges.

Since many people are uninformed and ignorant about their exact requirements, they are unable to choose the right policy or the amount they must spend on premiums. Wishpolicy ensures with the most advanced kind of “Premium Calculator” on its website. Customers would be required to upload details of their vehicle, the kind of cover they are looking for and other details required. After submitting the details, the customers will be redirected to a site that has details of every policy along with their benefits and premium charges. Thereafter, the customers have the opportunity to choose from the multiple policy options and buy the one that suits their needs and are within their budgetary requirements.

The policyholders avail the benefit of making payment online after submitting all their documents in electronic format. Payment can be made using their debit or credit cards or through net banking. Our insurance company partners cover all kinds of 2 wheeler vehicles including scooters, scooters, mopeds, and motorcycles. The premium for the insurance is calculated after taking the following factors into consideration. These are:-

  1. Insured Declared Value (IDV) of the vehicle
  2. The cubic capacity of the vehicle
  3. Registration zone of the vehicle
  4. Make and model of the vehicle
  5. The vehicle’s age

Benefits of Renewing Expired Two Wheeler Insurance Policy Through WishPolicy

Timely two wheeler insurance renewal is important as the benefits of the policy continue to secure you financially against any untoward event including theft, accidents or calamities be it natural or man-made and pays for any damage caused to any third party involved in the accident. While peace of mind remains an absolute characteristic of buying insurance, policyholders also benefit from the No Claim Bonus (NCB) feature, thus, allowing them discounts on consequent premium payments.

One may wonder whether they must focus on getting their two-wheeler insurance plan renewal done online or offline. It is important that one applies for policy renewal before it expires. However, some customers are not able to renew their policy prior to its expiry. They may then apply for the renewal, online or offline, within a span of 90 days from the date of expiry. Existing policyholders may then get their two-wheeler vehicle insurance policies renewed through Wishpolicy that assures their customers the best deal on two-wheeler insurance premiums and corresponding benefits, thus, enabling them to make an informed choice. Renewing your two wheeler insurance policy through Wishpolicy ensures the following benefits that may be listed as:-

  1. Zero inspection and documentation
  2. No added charges
  3. Quick policy issuance
  4. Policyholders do not have to submit prior policy details even if the policy has expired for more than 90 days

Whether policyholders are applying for two-wheeler vehicle insurance plan renewal before the policy expires or after it, they would continue to avail essential benefits including:-

  1. Lower rates benefit;
  2. Plan sufficing need and budgetary requirements;
  3. Efficient Wishpolicy customer care service.

Caveat: Any renewal made after that will not contain the NCB benefit irrespective of the insurance company approving your renewal proposal.

How to Renew an Expired Two Wheeler Insurance Through WishPolicy?

Whether you choose to be careful and apply for your two wheeler insurance renewal before the expiry date or wait for the policy to expire before proposing its renewal, Wishpolicy ensures that your experience of renewing your policy with us remains hassle-free throughout. All you have to do is give a missed call on 8527844822. In less than two minutes, you will receive a WhatsApp message from our end. Wishpolicy will send you the message from 7290084526. You may save this number on your mobile as Wishfin Auto Insurance Number. You will be inquired about the registration number of your two-wheeler vehicle. After you have submitted the same, you will be required to submit your name, email id and your vehicle details. Depending on your needs, we will send you premium options, acceptance of which you may choose to renew your expired 2 wheeler vehicle insurance policy through us.

What Does Your Two Wheeler Insurance Policy Cover?

Having a two-wheeler vehicle mandates buying or renewing a two wheeler insurance policy. However, not many are aware of the kinds of policies available and the risks covered under each of them. There are two main kinds of 2 wheeler vehicle insurance plans available in the market right now. These may be classified as under:-

1.Third-party liability

In the event of any damage stemming from an accident with your two-wheeled vehicle, you will be responsible to make good for the loss caused to the vehicle or property of the other person involved in the accident. If you have bought a basic third-party liability cover from any two wheeler insurance company, the insurance company is liable to pay for the damages caused to the other. However, this kind of cover does not secure against personal accident damages caused.

2.Comprehensive Insurance or Own Damage policy

This is actually a kind of detailed two wheeler insurance cover available. As the name suggests, this kind of insurance policy covers against damages resulting from natural or man-made calamities. A comprehensive two-wheeler vehicle insurance plan includes:-

  1. Natural disasters including floods, earthquakes, fire, lighting, hurricanes, storms, landslides, volcanic explosions, cyclones, etc;
  2. Mishaps were due to man-made calamities inclusive of thefts, robbery, strikes, collision, riots, terrorist activities, etc.
  3. Temporary or permanent disability or dismemberment due to an accident during bike driving, mounting or dismounting your two-wheeler vehicle, etc. Some insurance companies also avail cover for the pillion rider also called co-passenger cover.

Frequently Answered Questions (FAQs)

Q1. When is No Claim Bonus (NCB) terminated?

Answer: The No Claim Bonus is terminated only at two instances:-

  1. If the policyholder makes a claim during the policy period, he or she would not be entitled to NCB in the coming year;
  2. Non-renewal of the policy within a span of 90 days from the date of its expiry.

Q2. Can I get my NCB transferred to a new policy if I switch the insurance company?

Answer: The policyholder can get the NCB transferred to new policy irrespective of the new insurance company the policy is being taken from. One only needs to provide proof of the earned NCB via a letter affirming the entitlement to NCB or vice versa.

Q3. Can the policyholder seek insurance cover for accessories added to the vehicle?

Answer: The insurance companies cover additional accessories installed in the vehicle subject to the condition that the policyholder seeks comprehensive policy cover by paying an additional premium. Factory fitted accessories are already covered under the 2 wheeler insurance policy.

Q4. Could my insurance company reject my insurance policy claim?

Answer: Insurance companies reject the claim made on two wheeler insurance policy only in the rarest of circumstances. For example, if your two wheeler insurance vehicle insured under a personal motor insurance policy has been rented out for commercial use or vice versa or if you had induced modifications in your two wheeler vehicle without informing the insurer, then your insurance company has the right to reject your claim.