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7 Things To Know About Two Wheeler Insurance Companies

Two-wheeler insurance companies offer various kinds of insurance policies to protect the interests of bike owners. You should be aware of your insurance requirements and choose an appropriate insurance plan to protect your interests. If you are buying a new vehicle, you should be aware of the insurance requirements also. New policy, as well as the renewal of existing policy, can be done from an approved two-wheeler insurance company in India.

Reputed insurance companies

As per the statutory mandate, you should possess a two-wheeler insurance company to ride on public roads. The Motor Vehicles Act, 1988 stipulates that your vehicle should be covered by at least a third-party two-wheeler insurance policy. If you ride a bike without an insurance plan, you may want to pay the penalty as well as liable for imprisonment as per the court order.

You should buy a two-wheeler insurance policy from a reputed insurance company so that all your financial interests will be protected in a very efficient manner.

The following two wheeler insurance companiesoffer various kinds of policies to fulfill your bike’s insurance needs:

  • Bharti AXA
  • SBI General Insurance
  • HDFC Ergo
  • Reliance General Insurance
  • New India Assurance
  • Bajaj Allianz
  • TATA AIG Insurance

Important factors

You should be aware of the following important factors before buying a two-wheeler insurance policy:

  1. Claim-settlement ratio – You should be aware of the claim-settlement ratio of the insurance company. If the claim settlement ratio is high, the probability of claiming your policy will be high and the purpose of insurance will be protected.

You can find the ‘claim settlement ratio’ on the official website of the insurance company as well as on the IRDAI (Insurance Regulatory Development Authority of India) website.

  1. Customer support – The insurance company should offer a toll-free number to reach on round the clock basis. You should be able to contact the insurance company by email and other channels as well.
  2. Sum insured –The sum insured will influence the premium of your bike insurance policy. It is the maximum amount the insurance can pay towards various kinds of damages.
  3. Add-ons – The financial protection of your insurance plan can be enhanced by subscribing to various kinds of add-ons.

The following are some of the common add-ons offered by a bike insurance company:

  • Nil Depreciation cover – The vehicle will be covered to get the maximum amount when it is covered by the ‘nil depreciation’ add-on. While compensating the spare parts, the insurance company will take the depreciation into the account. When your vehicle is covered by the ‘nil depreciation’ clause, the insurance company will pay 100% of the replacement cost of spare parts. You can avoid out of pocket expenses.
  • Personal accident cover – If you are eligible for personal protection, the vehicle rider will be protected. The insurance company will pay compensation for the injury or death of the rider. As a matter of fact, the personal accident cover is not included with a third-party bike insurance plan. You should subscribe to the add-on by paying an extra premium.
  • NCB retention cover – No-claim protection will be offered by an insurance company as an add-on to the policy. Even though you make small claims, the no-claim bonus will be protected when you are covered by the NCB retention. If you are not covered by NCB retention, you can subscribe to it while renewing the policy.
  • Accessories cover – You can subscribe to an additional ‘accessories cover’ so that all the accessories that are fitted on the vehicle will be covered in a very efficient manner.
  • On-road towing service – If there is a sudden breakdown of your vehicle on the road, the towing services will be offered by the insurance company. You should inform the insurance company about the breakdown of your vehicle and the insurance company will assist you in moving the vehicle to the nearest garage for repair or restoration.
  1. Third Party Cover – If there is a loss to the third-party, the expenses incurred in overcoming the damage will be paid by the insurance company.
  2. Coverage for own damage – The insurance plan will cover the damages to your own vehicle. If there is damage to the vehicle due to natural or manmade disasters, the insurance company will cover those expenses. Natural calamities such as earthquake, floods, fire, and cyclone will be covered by the insurance policy. Manmade disasters or loss such as theft are covered by the policy.
  3. No-Claim Bonus – Insurance companies offer a discount on the insurance premium. If you had not filed a claim in the previous policy year, you are eligible for discount. You will get a discount of 10% to 50% on the insurance premium. The bonus percentage will increase with every claim-free year and the maximum bonus is capped at 50%.
  • ARAI (Automotive Research Association of India) – Your membership with the ARAI will help you get discount on the insurance premium. If you are a recognized member of ARAI, you will get 5% discount on the insurance premium.
  • Anti-theft devices – If you install anti-theft devices on your bike, you will get discount on the insurance premium. When you install anti-theft devices, the insurance companies believe that there will be better protection of the vehicle. You should inform the insurance company about the installation of safety devices or accessories on your bike so that the discount will be applied while buying or renewing an active policy.

Long-term bike insurance policy

Bike insurance companies offer long-term insurance policies for duration of 2 or 3 years. There are certain benefits associated with the long-term bike insurance policy.

  • Affordable – The insurance premium is affordable. You will pay the same premium amount for all the policy years.
  • No hike in premium – The insurance regulator will revise the insurance premium on an annual basis. However, there will not be an impact on the long-term insurance policy as the premium will be paid in advance at the time of subscription.
  • No impact on no-claim bonus – There will not be an impact on the ‘no-claim bonus’ even though you claim the policy.
  • No requirement to renew the policy – As you buy a long-term policy, there is no requirement to renew the policy every year.

Exclusions of a two-wheeler insurance policy

The following exclusions are applied on a two-wheeler insurance policy:

  • Riding the bike without a valid driving license – If you ride the bike without a valid driving license and met with an accident, the insurance company is not liable for the damage. The claim may be rejected by the insurance company.
  • Negligence in protecting the bike – If there is negligence on the part of the insured in parking the vehicle in a safe location, the insurance company can reject the claim.
  • Driving under the influence of drugs or alcohol – The accident incurred due to the driving under the influence of drugs or alcohol is not covered by the insurance policy.
  • Policy inactive – If the insurance policy is not active, the insurance company will reject the claim. You should renew the policy on or before the expiry to enjoy the benefits of the insurance contract.

Third –party bike insurance vs. comprehensive bike insurance

There are two options to buy a bike insurance policy. You can either go for a third-party insurance plan or a comprehensive insurance plan.

  • A third party insurance plan will help you meet the mandatory requirements as per the law.
  • The third-party insurance plan will cover the risks associated with the third-party. If there is injury or death of the third-party, the insurance company will pay compensation on your behalf. If there is loss or damage to the third-party property due to the negligence of the insured, your liability will be borne by the insurance company.
  • The drawback of the third-party insurance policy is that it will not cover the own damage. If there is loss or damage to your vehicle, you should get it repaired by yourself.
  • A third-party insurance plan will come with limited options. The add-ons can be subscribed. However, the premium will be high.
  • With a comprehensive insurance plan, you can cover almost all possible risk factors. You should assess your bike insurance requirements and should subscribe to the most appropriate plan as per your needs.
  • For an expensive and new bike, you are advised to buy a comprehensive insurance plan. If the vehicle is damaged due to an accident, the insurance company will pay the compensation. With a ‘nil depreciation’ cover, the out of pocket expenses can be eliminated drastically.

Online insurance calculator

Before buying a two-wheeler insurance plan, you can use the online calculator. The calculator will help you choose a policy as per your needs. The premium payable for various types of policies can be assessed in an accurate manner.

Conclusion

A two-wheeler insurance policy will fulfill your needs by protecting your vehicle and the rider. You should be aware of the risk factors and choose the best policy from a reputed insurance company to cover all the risk factors.