Your Guide to Two-Wheeler Insurance

While two-wheelers help you navigate through the traffic stricken roads, there’s no denying the fact that traveling on two-wheelers comes with a greater degree of risk when on the road.

We all know that two-wheeler insurance is mandatory, and riding your bike without insurance is an offense punishable by law. But as per law, the only two-wheeler insurance that’s mandatory is the basic third-party cover. This is why to save on premium, most people buy this basic cover, overlooking the fact that they are compromising on insurance coverage.

If you are someone who takes every possible step to keep your bike in the best condition and also take safety measures to secure yourself against accidents while riding your two-wheeler, would you be ok compromising on your two-wheeler insurance? Certainly not!

In this blog, we will cover all aspects related to two-wheeler insurance to help you make the right choice when it comes to buying an insurance cover for your two-wheeler.

Types of insurance for two-wheeler

There are two types of insurance available: -

Third-party insurance – This is the most basic cover, as mandated by the law, which protects against any damage or loss suffered by third-party as a consequence of an accident involving the insured vehicle.

Comprehensive insurance - An all-inclusive insurance that protects against third-party loss and damage, damage or loss to the insured vehicle, as well as personal accident cover to the rider.

Since a comprehensive cover provides an all-inclusive cover, it is always advisable to buy comprehensive two-wheeler insurance. At the same time, you should do that only after evaluating your requirements as well as comparing the different insurance plans on offer.

Long term two wheeler insurance

Insurers can opt for a one-year policy that offers coverage for a tenure of one year or a multi-year policy that is valid for a longer term of up to 3 years. Buying long-term insurance is a smart way to not just avoid the hassles of insurance renewal, but also avail numerous benefits.

What is Insured Declared Value (IDV)?

IDV is the maximum sum insured fixed at the time of buying a policy, and this is the amount that is provided in case of total loss or theft of two-wheeler. So, in case a vehicle suffers damages in an accident that are beyond repair or gets stolen, IDV is the compensation that the insurer pays.

IDV is determined by the market value of a vehicle after deducting for depreciation (normal wear and tear with age). So, as vehicle ages, depreciation will increase, IDV will decrease, and as a result of which the premiums will fall. IDV is one of the main factors that determine the premium of two-wheeler insurance.

What is No Claim Bonus (NCB)?

A two-wheeler plan is a one-year or multi-year (up to 3 years) contract that has to be renewed. In case you do not make a claim during a policy year, you are entitled to earn a discount on your premium at the time of renewal. This discount is the No Claim Bonus which increases for every subsequent claim-free year. The rate of discount is fixed; it starts at 20% for the first year and then increases to 25%, 35%, 45% and 50% (maximum limit) in the subsequent years.

Extend your insurance cover with riders

Insurers offer additional coverage in the form of insurance riders to help you extend your policy coverage and enjoy better benefits. These riders, however, come at an additional premium payment. So, in case you feel you need more coverage with your insurance, you can have additional coverage by paying a nominal amount over and above your premium.

Here are a few common two-wheeler insurance riders: -

  • Personal accident cover for pillion rider
  • Depreciation cover for specific parts of the insured vehicle
  • On-road assistance insurance in case of vehicle breakdown

Keep these points in mind when buying or renewing two-wheeler insurance. Also, invest some time in researching about the two-wheeler insurance plans on offer, and compare them on factors such as coverage, company reputation, premiums, etc. in order to make the right choice.

 

**To understand exactly about the policy coverage, exclusions etc read the Policy Wordings carefully.**