Two Wheeler Bike Insurance 147 views August 23, 2019

Are You Buying Two-Wheeler Insurance? Check These IRDAI Rules for 2 Wheeler Insurance Policies

IRDAI Rules for Two-Wheeler Insurance Policies & Plans in India

Before you buy a two-wheeler insurance plan in India, you should be well aware of what the policy entails. This will help you to find a plan that caters to your exact requirements. You will be able to find a match and get more value out of the bike insurance cover. IRDAI has made certain guidelines for motor vehicle insurance policies. You must ensure the two-wheeler insurance policy you buy adheres to those very guidelines. Let us find out more.

IRDAI Guidelines for Bike Insurance Covers

The IRDAI makes the following provisions for a two-wheeler vehicle insurance cover:-

Third-party insurance is compulsory

If you live in India and own a two-wheeler, you are compelled to get a third party liability bike insurance cover. such a plan protects the third party interests. If you end up injuring a third party or their property in a road accident, you will be liable to compensate them for the losses. And since such expenses can be very high, you need an insurance company’s assistance to clear the dues. This is why you need the third party cover when you ride your bike in India. you can also opt for a comprehensive cover, but that is optional.

Inclusions

There are certain inclusions that a regular (comprehensive) bike insurance cover beings along. They include:-

  • Third-party protection

  • Cover for your own bike against theft and damages from natural and manmade disasters

  • Health insurance cover

  • Personal accident insurance cover

Exclusions

Just like the inclusions, a standard bike insurance policy also has certain exclusions. They are:-

  • Standard wear and tear

  • Riding when drunk

  • Riding without a helmet

  • Underage riding

  • Using a personal vehicle as a commercial vehicle

  • Using a lapsed vehicle insurance policy 

If you are found engaging in these motor insurance exclusions, you won’t be in a position to raise a claim after an accident.

Premium Calculations

The premium of all the motor vehicle insurance plans is not the same. This is because the insurance premium calculations depend on a number of factors such as:

  • Make and model of the bike

  • The cubic capacity of the bike

  • Age of the bike

These are the primary factors affecting the bike insurance premium. There are many more factors. You should carefully assess each factor to ensure you are not being overcharged when buying bike insurance coverage

The role of IDV

The IDV, or the insured declared value, is a crucial component in all kinds of vehicle insurance, including two-wheeler insurance. With age, the vehicle and its parts begin to depreciate. The IDV then determines the current value of the car, after taking the depreciation into account. The bike insurance premium calculations greatly depend on the IDV, so make sure the figures are added correctly before you pay the insurance premium.

The role of NCB

Another vital two-wheeler insurance component is the no claim bonus, commonly known as the NCB. The NCB is a discount you earn for riding your vehicle safely, avoiding accidents and subsequently, making claims on your two-wheeler insurance policy. the NCB is deducted from your premium and proves to be financially helpful.

Documentation

You need a set number of documents when you look to get a bike insurance claim processed. The IRDAI makes it mandatory for every general insurance company to ask the policyholders for the following documents when raising a two-wheeler insurance claim:-

  • RC book of the bike

  • PUC certificate

  • Insurance certificate

  • Policyholder’s driving license 

If you fail to produce any of these documents, your bike insurance claim may not be honored.

Availability of riders

As per the IRDAI rules, you are free to buy some add-on covers when you buy a vehicle insurance cover. these add-on covers, also known as riders, are available at an added cost. They increase the scope of the insurance coverage and make your policy all the more flexible. some of the most common bike insurance riders include:-

  • Roadside assistance rider

  • Pillion protection rider

  • Health insurance rider

  • Personal accident rider

  • Zero depreciation rider

Choose your rider carefully and get a wholesome bike cover in a smart and easy manner.

In Conclusion About IRDAI Rules for 2 Wheeler Insurance in India

As per the guidelines of the IRDAI, a standard bike insurance cover must have all these features. When you buy a policy, make sure these points are all covered in it. Shop around for your ideal cover. It is always a good idea to compare insurance quotes before you buy a motor insurance policy. buy a good plan from a good insurance provider and get the best possible cover for your precious vehicle.