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Two Wheeler/Bike Insurance

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 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.

Riders Available in Two Wheeler Insurance

Riders are add on covers that you can get along with a base comprehensive auto insurance cover. The most popular bike insurance riders available in India currently include:-

Combustibles Cover

You get to cover the combustible parts of the vehicle, such as the nuts and the bolts, the engine oil, etc if you buy this rider. Such parts are usually not covered under a standard bike insurance policy.

Pillion Protection Cover

If something happens to the pillion in a road accident, compensation is paid out duly.

Roadside Assistance Cover

A towing vehicle is sent and your bike is taken to the nearest network garage if it suddenly breaks down. This is one of the most useful bike insurance riders available.

Health Insurance Cover

Often, hospitalization is required when you are badly injured in a road accident. You can get an additional health insurance cover with your vehicle insurance plan if you buy this add-on motor insurance cover.

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 Bike Insurance Plans in India

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.

Features and Benefits of 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.

Legally secured – If you are ever caught riding your bike on an Indian street without a valid motor vehicle insurance plan, you will get into a lot of legal trouble. You will be fined and if things take a bad turn, you may even land up in prison. So stay legally secured by buying a good bike insurance plan.

Financially secure – A road accident can lead to huge financial liabilities for you. apart from having to get the treatment is done and your bike repaired, you may also have to pay third-party compensations. When you have a vehicle insurance plan in place, your insurance provider takes care of the financial liabilities. This keeps your finances secured and gives you a lot of mental peace.

Protection for your bike – You get to repair your bike whenever there is a need. This allows you to get the vehicle in very good condition and well maintained at all times. If the bike gets stolen or permanently damaged, you get compensated to replace it. this is one of the largest advantages of buying a good motor insurance policy.

Protection for yourself – Road accidents are common, and injuries stemming from them are equally common. Your vehicle insurance plan offers a health insurance cover too with which you can afford to get the best possible treatment and bounce back to health at the earliest.

Death benefit – Lastly, and most importantly, you get a life cover when you buy a motor insurance policy. if you die in a road accident, your nominees get a death benefit. This provides an assurance and allows you to be sure of providing for your family even if something unexpected happens.

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.

Advantages of Buying Two Wheeler Insurance Online

A very common and convenient way to buy two-wheeler insurance in India currently is the online route. You can find some excellent motor insurance online plans. There are many advantages you get when you make the purchase online. They are:-

Quick and easy – You can buy your vehicle insurance cover online in an instant. The process is very quick and simple. You can go online, browse over the plans, make your payment and get the cover instantly. You are not asked to submit any complicated list of documents. You are also not made to wait, as the bike insurance policy is transferred to your name then and there. 

Plenty of options – You get not one, but multiple options to choose from when you buy motor vehicle insurance online. You get to see all the plans from all the insurance providers in one place.

Can compare – One of the biggest benefits of buying a two-wheeler insurance coverage online is that you get to compare insurance quotes. Comparing is highly beneficial as you get to find the best plan at the lowest rate. You can also see the premium you need to pay before you buy the plan. Make use of this technological advancement and buy your ideal bike insurance cover online.

Unbiased choice – Another huge advantage of buying a motor insurance plan online is the unbiased choice you get to make. You are free to choose any plan that you like from any insurance provider. You also get to individually go over the features of the different plans and then make a decision. When you buy insurance from an agent, often the agent may push a particular plan of a particular insurance company, for his own benefit. This can harm you adversely.

Easy to service – You can access your bike insurance plan from a mobile app at any time and from anywhere. This is another useful advantage of getting the online vehicle insurance cover. You don’t have to go to your insurance provider’s office, as everything is done digitally and remotely.

Points to Remember Before Buying Bike Insurance Online in India

Whether you buy your two-wheeler insurance plan in India online or offline, keep the following crucial points in mind before making a purchase:-

Select the correct type of cover – You have to choose the right type of vehicle insurance cover, keeping your requirements in mind. You can choose between a basic third party liability vehicle insurance plan and a comprehensive plan.

Select the term of the policy – You can get a bike insurance plan for one year, two years or three years. Go over the features and benefits of the single term and long term covers and then decide which one you want.

Calculate the NCB – You need to calculate the NCB very carefully before you pay your bike insurance premium. If you have some NCB accumulated, you can get a useful discount on the premium. Make sure your insurance provider calculates the NCB accurately before you finalize the deal.

Buy riders along with the plan – You may find a great two-wheeler insurance cover, but you still must consider getting some add-on covers with the basic plan. The riders will help you to customize the plan and make it more flexible.

Choose your insurer carefully – And last but not least, you should choose the general insurance company from whom you buy the plan, with utmost care. Unless you get a good insurance provider, you won’t get a good and useful two-wheeler insurance coverage.

How to Buy Bike Insurance Online?

Understand the type of insurance – Do you know that auto insurance is available under two categories? Yes, that is correct. You have the third party vehicle insurance cover and the comprehensive vehicle insurance cover. Under the third party cover, all the third party liabilities are only covered. You do not get any insurance coverage for your own vehicle. In a comprehensive motor insurance plan, you get all the third party benefits and in addition, you also get insurance coverage for your own bike. You, therefore, need to understand the scope of cover offered by the different types of bike insurance and then choose the one that meets your needs more closely.

Calculate the IDV – Before you go shopping for your motor vehicle insurance plan, you should calculate the IDV of your vehicle. The IDV or the insured declared value is the current market price of the bike. With age, the price of the two-wheeler starts to drop. So your bike won’t be of the same value after 3 years as it was when it was brand new. And since a motor insurance policy covers the value of a bike, the IDV plays a deciding role in the insurance premium of the plan.

Check for the NCB – The no-claim bonus is another crucial element that needs to be calculated properly when you look to buy your motorcycle insurance plan. The NCB is a discount you get on the current year’s insurance premium if you maintained a claim-free previous policy period. It keeps accumulating for every claim-free year that you complete. The discount can even go up to 50% in a few years. This discount then gets deducted and you get to make some handy savings. To ensure the insurance provider honors your accumulated NCB before you buy a vehicle insurance plan in India.

Look Online – A pro-tip to buy bike insurance is to look online. Motor insurance online is the trendiest thing right now. You will find some excellent options and that too at a much lower price. Online motor insurance quotes are much lower compared to their offline counterparts. This is because insurance agents are eliminated in the online process. You buy directly from the insurance provider and so save a large chunk of money on the brokerage costs. Also, the processing and administrative fees are lower in the online plans. The process to buy the motorbike insurance plan online is quick and easy. With so many advantages, you should definitely look online when you buy a two-wheeler insurance policy in India.

Research About The Insurers – While buying a good vehicle insurance plan with the best features and a good price tag is important, choosing the proper general insurance company that offers the policy is equally important. Unless you deal with a good insurance provider, you will never be able to enjoy the bike insurance coverage to the fullest. A good insurer is approachable and helpful. You should be able to contact them at any time and from anywhere. Then, a good motor insurance company will have a healthy claim settlement record. This is another crucial parameter to judge the insurer by. All-in-all, you must find the best possible insurance provider to buy your bike insurance plan from.

Re-Evaluate The Dealer Insurance – If you buy a new bike or scooter from a dealer, they will automatically offer a vehicle insurance policy to you. do not blindly accept the plan. Go over the policy wordings and see if the features of the insurance cover are suitable for you. If you feel they are not quite suited or the insurance premium is too high, refuse the offer to take the policy from the dealer. Check the internet for a good motor insurance online policy and ensure your bike in the most appropriate manner.

Look For Riders – Riders are very handy tools that you can get along with the base motor vehicle insurance plan. They are add-on covers that allow you to make the policy more flexible. You can buy the riders at an added cost, so ensure you choose only the ones you need. Some of the common bike insurance riders include:

  • Personal accident rider
  • Pillion protection rider
  • Zero depreciation rider
  • Roadside assistance rider

Go over the clauses of each rider and then see which ones you need. Do not make unnecessary purchases as that will push up your overall vehicle insurance costs. Buy the ones you feel would protect your bike in a wholesome manner. Please note here that, a bike insurance rider is only available with a comprehensive plan, and not with a third party cover. These are the most important points for you to keep in mind before you buy a motorcycle insurance policy.

Benefits of Renewing Expired Bike Insurance Policy

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.

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.