Two wheeler insurance; keeping a vehicle is not only a style statement, but also a big responsibility. Two-wheeler insurance should not be bought simply because it is a compulsion, but to protect against the risk of natural and man-made disasters. A two-wheeler insurance is important for your own safety and that of others.
Steps to buy two wheeler insurance online
It is easy to get two-wheeler insurance online and secure your bike in minutes. Here is a step by step process of purchasing two-wheeler insurance online.
Step # 1: Identification of ‘requirement’
Why should you buy a two-wheeler insurance policy? In addition to the fact that motor insurance is mandatory, it is also important to understand that two-wheel coverage is also an hour requirement for some reasons. However, one of the main motives for getting bike insurance is to protect yourself from damage and third party losses.
Step # 2: Research
Today, everything is available online; However, it is recommended to explore the market first. Whenever you go shopping, you discover many options and want to choose the best one. Thus, before jumping to buy two-wheeler insurance online, prepare yourself with basic information about two-wheeler insurance.
Familiarize yourself with the various terms used in auto insurance. Research on terms like IDV (Insured Declared Value), NCB (No Claim Bonus), Third-Party Liability etc.
Step # 3: Compare different insurance policies
Choosing the best bike insurance can be a complex task, but it is not as difficult if you compare two-wheeler insurance online. When purchasing two-wheeler insurance, you should check the following factors to get the right policy that matches your needs:
- Coverage type
- Factors that affect your insurance premium
- Change of vehicle
- Claim Processing Time
Step # 4: Select insurance Company
There are about thirty insurance companies that offer non-life insurance products. Choosing the right insurance company is as important as buying the right insurance policy. An ideal two-wheeler insurance provider should offer top-notch pre-sales as well as after-sales service. The claim settlement process should be as short and smooth as possible. Additionally, go to the company’s website and view customer reviews.
The company should have a Customer Grievance Cell to handle complaints on an urgent basis. Choose the company only when you are satisfied with these basic criteria while purchasing insurance from them.
Step # 5: Select the insurance type
To select the type of two-wheeler insurance online, go to the two-wheeler insurance page and fill in the details about your bike. Next, choose the type of two-wheeler insurance you want to buy.
- Here you have two options to choose from,
- Third-party cover: This insurance is mandatory in India and only covers liability arising from third-party damage.
- Comprehensive cover: This policy is optional. This includes third-party coverage as well as self-damage.
Step # 6: Set your bike’s IDV (Insured Declared Value)
Once you finalize the insurance policy for the bike, you will need to set the IDV of your vehicle. The IDV is nothing but the present value of your vehicle. IDV decreases over time. It is calculated as the price of a vehicle’s parts, which is the depreciation on its parts. In addition, the cost of registration of the bike and its insurance premium are excluded from the IDV.
Step # 7: Choose Add-ons
An add-on, also known as a rider, is a coverage that can be included in your bike insurance policy by paying a slightly higher premium. However, add-ons can be added to the broader policy itself. You cannot add a rider to third party insurance. You can increase the coverage of a comprehensive bike insurance policy by adding a suitable rider. Zero depreciation and engine protectors are the most common riders that people add to their insurance policy to get maximum coverage on a bike.
Step # 8: Read the policy document
It makes sense to read the insurance related documents carefully. This can help you avoid confusion when you need to file a claim. Following are the points to go in the policy document.
- Announcement page
- Understand the terms and conditions
- Know your coverage details
- Monitor exclusion
- Know the geographical limits of the policy
Step # 9: Fill Full Details and Check Summary
Please enter personal and vehicle related information correctly. A minor mistake can lead to the termination of the policy at the time of settlement. To avoid such obstacles, it is important to enter and verify all the details you have mentioned when applying for online two-wheeler insurance. View the summary of the information you stated and save a copy of the same.
Step # 10: Pay
Payment is the last step to purchase two-wheeler insurance online. Once you make the payment successfully, a copy of your bike insurance policy will be sent to your registered email address. You can also download and print a copy of the policy for your reference. It is advisable to keep a copy of your vehicle’s insurance policy with you whenever you are riding a bike. If a police officer demands to see the insurance papers, it should be available in printed form with you.
The moment you are paying online for your two-wheeler insurance, the process is complete.
If you already have insurance for your bike and are looking to renew the same, remember, you do not get any grace period to renew bike insurance. In case of two-wheeler insurance, you have to renew the policy on the same day or before the expiry of the policy. If you delay doing so, even for a day, the insurance company can inspect the vehicle before issuing an insurance policy.
Bike insurance should not be seen as an expense, as it can protect you from substantial financial losses at the time of an accident and third party losses. Instead of contacting the policy agent and coming in physically, why not save some time and money? With a few clicks it is convenient to buy an insurance policy for your vehicle at home or office. This coverage can be purchased online with the help of two-wheeler insurance within minutes. It is worth investing a few minutes in purchasing or renewing your bike insurance online.
It is a great feeling to own a new two wheeler! But are you aware of the specific regulations designed by IRDAI for the safety of your two wheelers? Read on to know more.
IRDAI (Insurance Regulatory and Development Authority of India) is the governing authority in India for the insurance sector. It is a statutory body that manages and regulates the entire insurance sector. It is mandatory for both the insurance provider and the policyholder to follow the rules and guidelines laid down by IRDAI. When it comes to two-wheeler insurance policies, IRDAI has set certain guidelines so that policyholders are treated fairly by insurance providers. It is mandatory for all insurance providers to follow IRDAI rules, as it monitors the healthy growth of the insurance sector in India.
Here are important instructions by IRDAI related to two wheelers including scooters and motorcycles.
Cover for personal accident
- The company has to compensate the policyholder according to the sum insured based on the severity of the bodily injury claimed by the policyholder.
- Unless there are specific terms and conditions mentioned in the policy document, compensation on death should be up to 100%.
- If the policyholder loses an eye or a limb, the compensation for the same is 50%.
- In addition to the above, the compensation amount is 100% in case of any bodily injury to the policyholder, which causes complete and permanent disability.
- There are specific terms and conditions that apply to this indemnification clause.
There are several situations mentioned above; However, only one claim can be made and processed at the same time.
The total liability of the insurance company is Rs. Cannot exceed 1 lakh at the time of claim processing.
The insured is not eligible to make a claim if the accident is the result of a suicide attempt or a suicide attempt.
The sum assured is payable to the legal representative of the nominee or the insured in case of death.
Coverage applies only if the driver / owner of the vehicle holds a valid driving license.
Exclusion from policy
According to IRDAI rules, two-wheeler insurance policies are not eligible for compensation under the following circumstances. No claim can be made in such cases.
- Driving under addiction
- Regular wear and tear
- Riding without a valid license, or if the bike is operated by a young person
- Use vehicle for commercial activities
- An expired policy, resulting losses, electrical and mechanical failure, staged accidents, and driving outside geographical boundaries are other reasons for claim rejection.
Factors affecting premium calculation
The primary factors that affect the premium of a comprehensive two-wheeler insurance policy are:
- Cube capacity of engine
- Age of vehicle
- Vehicle manufacture and model
Declared Value (IDV)
IDV is one of the important factors for bike insurance. The sum assured is decided on the basis of IDV. The IDV is calculated based on the market value of the vehicle. In addition, the cost of side parts and other accessories are also taken into consideration. The rate of depreciation also applies to IDVs. The reduction depends on the age of the vehicle. It is important to note that IDV is of extreme importance in calculating the total loss.
IRDAI has clearly defined depreciation rates which need to be considered in the case of two-wheelers. Depreciation affects the claim amount. In simple words, older vehicles, less amount is a claim amount.
For two-wheelers that are less than six months old, depreciation is calculated at the rate of 5%. Once the vehicle crosses six months, the depreciation rate increases to 15%. After completion of one year, it increases to 20%.
Depreciation rate for different two wheeler parts
IRDAI has also specified depreciation rates for various parts of two-wheelers. Nylon, plastic and rubber parts are subject to depreciation at the rate of 50% at the time of replacement. The 50% depreciation also applies to tires, batteries and tubes. Depreciation is calculated at a rate of 30% for fiberglass. Depreciation does not apply for the glass component.
Transfer of no claim bonus from one insurer to another
IRDAI has explicitly mentioned that if a policyholder changes the insurance provider during the renewal, it will miss the No Claim Bonus.
Third party insurance
The Supreme Court of India has recently made it mandatory for all new two-wheelers to have a third-party insurance policy for a minimum period of five years which is effective from September 1, 2018.
Documents to be kept in insured two-wheelers
The following is a list of documents that are required to be present in the vehicle.
- Insurance certification letter
- Copy of PUC (under pollution control)
- Vehicle registration copy
- driving license
- Grievance redressal
- IRDAI has set a turnaround time to ensure that complaints are resolved at the earliest and that policyholders are not exploited by insurance providers.
- Complaint Acknowledgment: 3 business days
- Grievance Resolution: 15 Business Days
- Insurance, processing and cancellation of insurance policy: 15 business days
- Settlement of Claims: 30 days
- Addendum report for insurance providers: 15 business days
- These points need to be kept in mind while applying for online or offline insurance policy for two-wheelers. With these IRDAI rules and guidelines for two-wheeler insurance policies, you will definitely be able to select the best bike insurance, and ride your vehicle in complete peace.