Two Wheeler Bike Insurance 853 views March 20, 2019

A Must Read Guide for the First-Time Bike Insurance Policy Buyers in India

Two Wheeler Bike Insurance in India

Summary: Two-wheeler vehicle owners buying 2 wheeler insurance for the first time are usually confused about the nuances of choosing and paying for the right kind of insurance policy. Before buying 2 wheeler insurance policies in India, it is advisable to log on to the portal of an insurance aggregator portal to find out the number and kinds of 2 wheeler vehicle insurance policies sold in India in addition to understanding their inherent features. Making an informed decision before buying insurance help.

One finds more two-wheeler vehicles plying on Indian roads than their four-wheeled counterparts. Traffic congestion, ease of parking and maintenance explain why two-wheeler vehicles are gaining increasing popularity. A hassle-free cover is also available, thanks to an increasing number of insurers that are ready to secure your vehicle in lieu of nominal premiums.

Why You Must Buy Two Wheeler Vehicle Insurance?

The provisions of the Motor Vehicle Act 1988 mandate the owner of any and every vehicle driven on Indian roads to buy an insurance policy to cover the amount that the owner may be liable to pay for damages caused to the third party during an accident. The damages caused may include accidental death, bodily injury or harm caused to someone else’s property. This holds true for buying 2 wheeler insurance too. However, most of the time 2 Two Wheeler Vehicle Bike Insurance is bought based on hearsay as opposed to the real need for comparing insurance policies before buying one.

Guide for First-Time Bike Insurance Policy Buyer

Any kind of 2 wheeler vehicle insurance including bike insurance involves a certain set of facts and conditions that first time many buyers are unaware of. These may include:-

Kinds of Two Wheeler Insurance Plans

There are multiple kinds of 2 wheeler insurance options available in the market currently. The customer may choose depending on the needs while also taking other factors including premium charges and associated benefits into account. The different categories into which 2 wheeler insurance policies in India are sold include:- 

Third Party Liability Insurance

Mandated under the Motor Vehicle Act, this is essentially an insurance policy bought by the insured from an insurer to offset the claims made by any third party. The claims may be made against the damages caused due to an accident and may include physical injury, loss of life and damage caused to the property of the third party.

Comprehensive Insurance Plan

As the name suggests, this is an extensive form of an insurance policy and covers against damages caused to both the parties involved in the accident. In addition to the mandatory third-party liability cover, this also covers against damages like theft and includes personal accident cover too. However, keeping in mind the pervasiveness of road accidents, policyholders also opt to pay for add-on covers that can be availed by paying an amount over and above the basic premium amount.

A comprehensive 2 wheeler insurance cover definitely costs more than a simple third-party liability policy as it covers against any and every possible damage due to accidents. Though the law does not mandate paying for a comprehensive policy, it is recommended to consider buying one owing to its multiple benefits.

Own Damaged CoverBuying this is optional and depends entirely on the requirements of the owner of the two-wheeler vehicle. If you are living in an area that is prone to natural calamities, you may consider paying for an insurance that will offset the damages caused by securing you a cover against accidental damages, damages caused to the vehicle during transit, theft, natural calamities, terrorist attacks, riots, vandalism, etc. The premiums for own damage cover are determined by several factors including:-

  • The age and profession of the vehicle owner;
  • Area or territory where the vehicle has been registered;
  • The vehicle’s make and model;
  • The kind and value of safety equipment installed in the vehicle;
  • If the vehicle owner’s membership is recognized by the automobile associations across the country;
  • The nature and extent of add-on covers opted for;
  • Voluntary deductibles adopted by the vehicle owner chosen at the time of vehicle purchase.

Not all are aware of the processes and documents involved in filing an own damage claim. While raising a claim for such, policyholders need to submit:-

  • A copy of the insurance policy bought to secure the vehicle;
  • A copy of the FIR filed at the nearest police station
  • Certificate of the vehicle’s registration;
  • Policyholder’s copy of the driving license;
  • Bills from the garage where the vehicle was repaired;
  • Images or photographs of the spot where the accident took place.

Factors Affecting insurance premiums

“Why do some insurance companies charge more than others? What are the factors that affect the premium rates of various insurance products?” are questions that every buyer asks. Agreed that some insurance products are more costly than others. However, 2 wheeler insurance premium depends on a lot of factors including:-

1)The kind of two-wheeler vehicle bought;

2)Value of the two-wheeler vehicle bought;

3)Cost of the accessories fitted to the vehicle;

4)Anti-theft devices installed to the vehicle;

5)Riding skills;

6)Add-on covers;

7)Membership in renowned bike clubs;

8)Insured Declared Value (IDV) of the vehicle.

Online or Offline Two Wheeler Insurance

First time buyers of 2 wheeler insurance are not sure if they must consider buying policies online or offline. The web has made it possible for insurance companies to share details of the plans they sell on their sites and insurance web aggregators to list various insurance plans at one place. This saves customers considerable time in seeking details from different insurers while enabling them to compare the benefits of various policies before choosing the right one and paying for it accordingly.

Insurance is not a matter of choice that one can choose to ignore. Insurance implies cover and guaranteed security that people can avail in lieu of nominal premiums paid regularly.

Conclusion About First-Time Bike Insurance Policy Buyers Guide in India

With multiple 2 wheeler insurance companies selling policies in India, choosing the right insurance product may seem arduous, especially, for first-time 2 wheeler insurance buyers. Browsing the sites of different 2 wheeler insurance companies or scanning through information shared by insurance web aggregators makes insurance buying easier.