All you need to know about two-wheeler insurance cover
Owning a two wheeler insurance is mandatory under the law of Motor Vehicle Act 1988. While riding a two-wheeler, he/she is responsible towards own safety, pedestrians and pillion riders safety if any. A vehicle insurance will give the policyholder protection against unfortunate situations like accidents, thefts, mishaps, etc. for pillion riders, bike and the owner. There are a number of websites which will provide you all the information about two-wheeler insurance as directed by the IRDA.
A rider can choose between two insurance or can opt for both for extra benefit during an unfortunate event;
Third-party Liability cover: This is a mandatory policy that a rider should own even though he/she may not be opting for a comprehensive policy. This plan provides cover only legal liabilities that arises due to damages or injuries caused to a third-party person or property by the insured vehicle. Personal losses covered under this plan include accidental death, body injuries, permanent disability, etc. This insurance cover can be availed at a lower premium as it covers only third-party liabilities. This cover allows you to raise a claim under the ‘no-fault liability claims’ category. Here, you are allowed to raise the claim without having to provide proof that suggests your negligence caused the accident.
Comprehensive policy: This is a standard policy that provides an extensive coverage for various situation that is faced by the policyholder. This plan covers third-party liabilities, body injuries, accidental death, property damage, own liabilities arising out of personal losses, property damage from natural calamities or man-made calamities. The premium for this plan is high due to the extensive insurance coverage the plan provides. Insurers usually provide a number of add-ons that you can opt for under the comprehensive plan.
There are many add-ons as per the requirement of the policyholder. You can avail these benefits for an extra premium amount on your standard policy. These will enhance the cover by making it more secure for the vehicle. Here are the add-on covers that are available for extra premium:
Zero-depreciation cover: A Zero Depreciation cover gives you full coverage for the vehicle as whole or part of the vehicle, without deductions of depreciation. The standard rate for two-wheeler insurance policy is up to 40%, but with an add-on option of Zero Depreciation cover, you can claim for the full amount. While calculating for compensation or repairs on accidents or otherwise, all insurers take depreciation value into consideration. But having this add-on cover will save you from those deductions which is otherwise not possible with a standard plan.
Key replacement: If you have lost the main key for ignition of the vehicle due to any reason, the insurance company will cover the cost incurred in acquiring a duplicate or new key set. If you do not have this benefit, you will have to pay the whole amount personally.
Anti-theft device cover: If the owner of the insured vehicle has installed anti-theft device in the bike, the insurance company will give you discount on premium amount.
Return to invoice cover: If the owner of the insured vehicle purchases this add-on cover, then he/she will be paid with full market value of the bike, if in case the bike was in a mishap and could not be repaired any further. However this add-on can be purchased on completion of the first year from the date of purchase of the vehicle.
No-claim bonus protection: If you have not claimed the insurance during a policy year, no-claim bonus is a reward given by the insurance company in form of discount on the renewal premium amount up to 20%. However, if the policyholder claims in subsequent years he may lose the NCB amount which he had accrued in the previous year. This protection cover will protect the NCB amount by becoming zero but only reduces the discount percentage given on the premium renewal amount.
Roadside assistance: This cover will help you get immediate assistance from the insurer in case of emergencies like flat tyre, empty fuel tank, battery issues, medical emergencies, etc.
Personal Accident cover: depending upon the policy purchased, the owner of the insured vehicle can utilize up to Rs.2 lakh for personal accident medical expense.
You should pick an insurer that not only provides you with the best deal, but are also efficient in dealing with claims, payments, and non-claim processes. Online research helps you to find the best by providing ratings so you can make an informed decision. Ensure that when you compare policies online, it computes the premium fixed according to the Insured Declared Value. Take your time in choosing the right insurer, because any blunder can result in future complications. Make use of third party financial websites to study about two wheeler insurance plans to have a clear idea.
Many financial websites provide you the platform to compare various insurers and choose the best plan for you. You can look for policy reviews by previous customers, their experience with the company and so on. You can get quotes from different insurers and compare features and benefits to buy the best product.
Ensure that when you compare policies online, it computes the premium fixed according to the Insured Declared Value.
(IDV=Manufacturers listing price – Depreciation)
What does the insurance cover?
-If you choose any comprehensive two wheeler insurance plan, it will cover these following:
-Natural calamities like flood, landslide, rockslide, cyclone, inundation, storm, typhoon, earthquake, etc.
-Self-ignition, fire and explosion
-Loss or damage due to man-made calamities like wild protests war, riots, bomb blast etc.
-Burglary or theft
-Personal accident cover up to Rs. 1 lakh is available for owner and in case the owner has purchased a cover for pillion rider, then the same is applicable for them as well.
Here are some exclusions from two-wheeler insurance policy:
-Mechanical and electrical breakdown
-Accidents caused by you while driving without a license to a third party (person or another vehicle).
-Driving the vehicle while intoxicated by liquor or drugs
-General wear and tear of the vehicle because of its daily use.
-No cover for general wear and tear of tubes and tyres. If the damage of these parts have occurred along with the vehicle because of accidents or mishap, the insurance company will be liable to pay 50% of the cost for repairs or replacement.
As per recent IRDA norms, the premium rates has been standardized with effect from April 1st, 2017.
Premiums Payable Engine Capacity
Rs.569 Up to 75 cc
Rs.720 75-150 cc
Rs.970 150-350 cc
Rs.1,114 350 cc and above