• March 15, 2022

Things You Need to Know About Two-Wheeler Insurance in India!

Things You Need to Know About Two-Wheeler Insurance in India!

Even though that third-party vehicle insurance is required by law, a sizable percentage of these two-wheelers remain uninsured. There are two layers to this problem. Either two-wheeler owners do not purchase bike insurance for their autos in the first place. If they do, they don’t take bike insurance renewal seriously. They fail to renew it on time, and as a result, the status of their insurance plan becomes inactive.

According to a General Insurance Council of India estimate, nearly 60% of vehicles in India are uninsured, with the majority of these being two-wheelers. In the years 2015-2016, roughly 19 million vehicles were registered in India. Only 8.26 billion (less than half a billion) were covered out of a total of 19 billion. Two-wheeler journeys provide a variety of reasons for people not purchasing bike insurance. Some of these causes include the fact that their scooter is extremely old, it is used, and the distance they go regularly is minimal.

The specification of a legal third-party two wheeler insurance policy on any vehicle, that operates on our roads is one such law stipulated in the Motor Vehicles Act. As a result, if you possess a vehicle, you must get vehicle insurance coverage in order to adhere to the insurance standards outlined in the Motor Vehicles Act of 1988.

Purchasing bike insurance in India

When someone buys a bike in India, they usually acquire a basic liability coverage policy. While this is a less expensive alternative, it also implies that they choose not to pay as much attention to coverage for their vehicle. Furthermore, it implies that they avoid refining their coverage by obtaining better costs and researching other possibilities. This prevents them from reaping the numerous benefits and savings that two-wheeler insurance may provide.

You must narrow your search. Make a list of the types of coverage you desire and then compare insurance policies. Following a comprehensive comparison, you can hunt for ways to purchase the policy at a low cost.

Types of bike insurance plans:

There are two kinds of two-wheeler insurance plans on the market. Read below.

  • 3rd-Party Liability Policy

This policy is the obligatory coverage required by the Motor Vehicles Act of 1988. This is a legal requirement for all bikes used in India. The policy covers any casualties induced to other people as a result of the motorcycle/scooter.

  • Comprehensive Policy

This policy extends the scope of the bike’s coverage. It includes the obligatory 3rd-party liability coverage as well as damage to the two-wheeler itself. Comprehensive policies, as a result, provide more comprehensive coverage additional benefits and are more expensive than 3rd-party plan policy.

Correlation between the third party and comprehensive bike insurance plans

This is how comprehensive vs third party two-wheeler insurance varies –

two-wheeler insurance

Add-ons in two-wheeler insurance plans

two-wheelr insurance

There are various forms of add-ons available with comprehensive two-wheeler insurance coverage. These add-ons are additional coverage perks that the policyholder can choose freely by amounting to an additional value. The following are some frequent and prevalent add-ons included in two-wheeler insurance plans:

1. Zero depreciation add-on

Two-wheeler depreciates over time as they are used and aged. Bike insurance policies do not cover this depreciation. When a claim is filed, the company subtracts the appropriate depreciation on various sections of the two-wheeler before settling the claim. Repairs, on the other hand, acquire the genuine cost of the items being fixed. When you deduct depreciation, you get a smaller claim amount and must pay the expenses. As a result, a zero depreciation add-on is beneficial. The depreciation on the bike’s parts is not evaluated at the time of claim under this add-on. The insurance team pays the real expenses of repairs, regardless of depreciation. As a result, your out-of-pocket costs are lowered.

2. Roadside assistance add-on

If your two-wheeler breaks down and you can’t get it to the local mechanic, a roadside help add-on comes in handy. This add-on offers you 24-hour support in the event of a breakdown. You only need to notify the insurance provider, and the firm will send help. Flat tires, fuel loss, electrical problems, and so on are all covered.

3. NCB protect add-on

If you do not make a claim on your bike insurance policy throughout the policy year, you will acquire a no claim bonus. This bonus entitles you to a reduction in your renewal premium. Furthermore, the bonus grows with each following claim-free year. However, if a claim is made, the full no-claims incentive is forfeited. This add-on covers you from losing your no-claim bonus. It maintains the NCB even if you make a claim on your two-wheeler insurance coverage.

4. Medical expense add-on

This add-on covers your medical bills if you are hospitalized as a result of a two-wheeler accident.

5. Personal accident cover for the backseater rider

A two-wheeler insurance policy requires personal accident coverage just for the bike’s owner/driver. The pillion rider does not have access to a cover. However, with this add-on, a personal accident policy for the backseater rider can be obtained.

6. Consumables cover

In the event of a bike repair, the expenses of consumables are not protected by the two-wheeler insurance policy. They include engine oil, nuts, and other items that the garage uses to fix the bike. The consumables cover add-ons, on the other hand, ensure that the cost of consumables is also protected by the two-wheeler insurance plan.

7. Return to invoice

When a bike is broken beyond repair or stolen, the bike insurance policy pays the Insured Declared Value, which is the bike’s market value after depreciation. However, if this add-on is chosen, the claim paid will be equivalent to the bike’s invoice value.

Exclusions in bike insurance plans

Now that you’ve learned about the many coverage options available through bike insurance policies, both standard and optional, it’s time to learn about what the plan does not cover. There are several situations that are not covered by bike insurance coverage, and these are known as policy exclusions. Among these exclusions are the following:

  1. Accidents that occur when the two-wheeler is operated without a valid driver’s license
  2. Accidents occur when the two-wheeler is operated on while under the control of drugs or alcohol.
  3. Accidents occur when the two-wheeler is used in excess of its capabilities.
  4. Accidents that occur when the two-wheeler is utilized for illicit purposes
  5. Accidents that occur after the two-wheeler insurance policy has expired
  6. The two-wheeler’s depreciation
  7. Mechanical or electrical failures
  8. Damages incurred as a result of war, mutiny, revolt, nuclear threats, and so on.

Key benefits of bike insurance plans

A two-wheeler insurance policy provides the following advantages:

  1. It addresses the legal requirement outlined in the Motor Vehicles Act of 1988. As a result, the coverage assists you in avoiding legal issues and fines.
  2. Because the insurance covers 3rd-party duties, you are relieved of the financial load that you would have to deal with if you caused any form of injury to anyone.
  3. Comprehensive plans also cover the bike’s damages, relieving you of the financial burden of repairs.
  4. If your two-wheeler is stolen, comprehensive coverage will compensate you for your loss so that you can purchase another two-wheeler.
  5. The add-ons offered with comprehensive two-wheeler insurance plans enable you to obtain a comprehensive scope of coverage and come to your aid in times of emergency.

How to make a claim in bike insurance plans?

By filing a claim for your bike, you notify the insurance company of an occurrence that results in damage to the insured vehicle. It could be due to an accident, theft, or damage caused by natural or man-made calamities. It is necessary for you to submit an application in the right manner asking for reimbursement for your expenses.

As a result, it is critical to select a firm that is able to pay your claims. They will guide you in the right process with the right step.

How to renew Two-wheeler insurance plans?

Because a bike insurance policy is required by law, you must renew it on a regular basis to assure continuous coverage. One can easily opt for online Bike insurance renewal. You only need to go to the website of the insurance company from which you purchased the policy, enter the policy number from your existing policy, pay the renewal premium, and the coverage will be renewed immediately.

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