What Is Two Wheeler Insurance Everything You Need to Know | waytosuccess

Two-wheeler Insurance policies provide financial protection should you, your vehicle or another party sustain any loss or damage in an accident. In addition to being a mandatory requirement, an insurance policy lets you enjoy riding your two-wheeler without worry.

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Two Wheeler insurance
Let us dive deeper into the types of Two-wheeler Insurance policies available in India and learn about their advantages, how to buy the right policy and go about the claim process.
Third Party Insurance
In India, all two and four-wheelers must have Third Party Insurance. This type of policy covers damages you may cause to a vehicle or property belonging to someone else. However, remember, the policy does not cover damages you or your vehicle may sustain in an accident. If you have caused an accident, Third Party Insurance will only cover damage and loss to the other party.
In case of a mishap, the third party can file a claim with the insurer to seek compensation for the damages. However, the insurance company will thoroughly investigate the reasons for the accident, and it reserves the right to either approve or decline the third party’s claim.
Comprehensive Insurance
A Comprehensive Insurance policy, also called First Party Insurance, offers much wider coverage than the previous type.
Comprehensive Insurance covers the loss that both you and the third party may suffer in case of an accident. It also covers damage and loss arising from various situations, from accidents to natural calamities, such as earthquakes, floods, landslides, hurricanes, etc. It can protect you against loss due to burglary, strike, riots or any other activity backed by malicious intentions.
If an accident takes place, you can reach out to your insurance provider and file a claim to seek compensation for damages to you and the other party, if needed.
Comprehensive Insurance policies can also include add-on covers such as Personal Accident, Zero Depreciation, Roadside Assistance, etc.
Mandatory Personal Accident Cover
Until a few years ago, a Personal Accident (PA) cover was optional. However, it has become compulsory for two and four-wheeler owners to have a PA cover of at least ₹ 15 lakhs. This cover protects against unfortunate events leading to your death or permanent disability while riding a bike or driving your car.
It is important to remember that a PA cover is not a part of Comprehensive or Third-Party Insurance and must be bought separately as an add-on. This cover also has its own set of inclusions and exclusions.
The annual premium you pay an insurer to avail of insurance for your two-wheeler varies on account of several factors, such as:
Age and make of the two-wheeler:
Your vehicle’s age is an important factor in calculating a premium. This amount is usually higher for new or more expensive bikes, and this is because the cost of repair or replacement for such models would be higher.
Location where the vehicle is used:
Insurers typically divide cities into zones, and the premium is decided based on the expected risks to the vehicle in these zones. So, where you use the two-wheeler plays a part in deciding its insurance premium. For instance, if your two-wheeler is in a zone where the chance of theft is high, the premium could be high.
Personal details:
Your personal details – age, gender, occupation, marital status, etc., can also influence the insurance premium. For example, if you are younger or do not have a lot of driving or riding experience, insurers may consider you a higher risk for accidents, and this could result in a higher premium cost.
Claim history:
Your claim history is another significant factor in determining the insurance premium. If you have made previous claims, the premium you pay could be high. This is because insurance providers consider such cases to have a higher possibility of claims.
No Claim Bonus
Just like prior claim history can lead to higher premiums, you can benefit from the No Claim Bonus feature. If you drive responsibly and do not file for any damage throughout the year, you may be entitled to a No Claim Bonus. This is like earning a discount on policy premiums for the following year.
Insurance providers offer various optional covers that you can add to a basic policy. Some of them are as follows:
Zero Depreciation Cover
This add-on is used to lower or completely negate the depreciation deduction amount during claim settlements. It ensures that you receive the full claim amount without factoring in the depreciation of your two-wheeler’s parts.
Engine Protection Cover
This add-on provides coverage for damages that the bike’s engine may sustain, including its internal parts, due to water ingression, hydrostatic lock and oil leakage, etc. It is particularly useful if the areas you ride through experience frequent flooding or waterlogging
Roadside Assistance
This add-on provides emergency assistance in case of breakdowns, accidents, flat tires, empty fuel tank, or any other roadside emergencies.
Return to Invoice (RTI) cover
In case of total loss or theft of your bike, the RTI add-on ensures that you receive the invoice value of the bike, including registration charges and road tax. However, this add-on is available only for vehicles up to a certain age, usually, 3 to 5 years.
Several factors impact the premium for a Two-Wheeler Insurance policy in India. Make sure you consider these factors before purchasing a policy as it helps select a policy that provides adequate coverage at an affordable premium.
Here are the steps you can follow to buy a Two-Wheeler Insurance policy in India:
Comparison of policies
Start by comparing the different policies available in the market. You can look for what different policies cover, premiums, add-ons etc. Online comparison tools can come in handy here. You can also consult an insurance agent for information if you are unsure of buying the policy on your own.
Choose the policy
Once you have compared the policies, choose one that best meets your requirements. Remember, you can customise the policy for extra protection with add-ons, such as PA, zero depreciation and engine protector at additional costs.
Fill in the proposal form
After choosing the policy, fill in the proposal form with accurate information about yourself, your vehicle, and any previous insurance policies.
Provide all the necessary information to your insurer to avoid any issues should a claim settlement process arise in the future.
Submit the necessary documents
Along with the proposal form, you will need to submit any necessary documents such as:
Registration certificate (RC) of the two-wheeler
Your driving license
Identity proof
Address proof
Pay the premium
Once you have submitted the proposal form and documents, you can pay the premium online or offline through various modes, including Credit/Debit Cards, net banking, or mobile wallets.
Receive the policy document
After you have made the payment, you will receive the policy document via email and/or post. The document will mention all the details of your policy, such as coverage, terms and conditions, and exclusions.
While most Two-wheeler Insurance policies offer a fair level of protection, you should be aware of some common policy exclusions, such as:
Wear and tear due to regular use
Damages caused if you drive while under the influence of intoxicants (alcohol, drugs, etc.)
Damages caused if you (the rider) do not have a valid driving license
Damages resulting from wars
Damages caused in the process of your two-wheeler being used for purposes other than the ones specified in the policy.
In the event of a theft, accident, or damage to your two-wheeler, you can file a claim with the insurer to receive compensation for the losses incurred. Here’s what you should do.
Inform the insurance provider:
The first step is to inform your insurer about the accident. You can do this by calling the Customer Care number or visiting the nearest branch office to file the claim.
Provide the necessary documents
The next step is to provide your insurer with the necessary documents. This typically includes the policy document and a copy of the FIR (in case of theft or third-party damage). You may also need to work out the estimated costs of the damage. This can be done through an authorised garage from the insurer’s network list.
It is also prudent to collect photo evidence of the damage as soon as the incident occurs in case you need to submit it at this stage of the claim process.
Inspection of the vehicle
Your insurer will then physically inspect the damages to your vehicle. This is done to estimate the repair cost based on the damage.
Claim approval and settlement
Next, your insurer will inform you if the claim has been approved. You can get cashless repair done at a network garage. In a cashless process, the insurer will settle the payment directly with the garage where your vehicle is repaired.
Alternatively, in a non-cashless process, you will have to pay for the repairs yourself and will later be reimbursed for the amount by the insurer. In this instance, you receive the claim amount within a stipulated time frame.
Remember, the claim process can differ, and generally depends on the insurer and the policy. To ensure a hassle-free claim process, read and understand the terms and conditions before buying a policy.
Two-Wheeler Insurance policies offer you a range of benefits. Some vital benefits include:
Financial protection
Two-Wheeler Insurance provides financial protection against damages caused due to accidents, natural calamities, theft or loss of the two-wheeler, and third-party liability. With insurance coverage, you can avoid the financial burden of repairing or replacing your two-wheeler in case of an unfortunate event.
Legal compliance
According to the Motor Vehicles Act 1988, it is mandatory for all two-wheelers to have Third-Party Insurance. By purchasing Two-wheeler Insurance, you comply with legal requirements and avoid legal penalties or fines.
To ensure continuous financial protection and benefits for your Two-Wheeler Insurance, it is vital to renew your policy before the due date. There are two ways to do this. You can either renew your insurance policy online by following the steps mentioned on your insurer’s website, or by going to your insurer’s office and paying the premium amount.
Renewing your policy on time can also ensure the retention of your No-Claim Bonus (NCB) and avoid any penalties related to policy expiration.
In the event that you miss your Two-Wheeler Insurance renewal due date, you will have to inform the insurer. They will then send a representative to assess your vehicle, after which they will provide you with a new insurance policy. This can take a couple of days, during which, it would be advisable to not ride your vehicle. To save yourself the inconvenience, it is best to renew your policy on time.
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