Just like Car Insurance for your car, Two-Wheeler Insurance for your bike is equally important. Here are the basics that you need to know before getting Two-Wheeler Insurance.
What types of plans are available?
There are two types of Two-Wheeler Insurance plans that you can choose from.
- Liability-only plans
A liability-only policy is a compulsory third party policy which covers damage to property of a third party, bodily injury or death. The option to take a Personal Accident cover is also provided for the owner/rider. A liability-only plan does not cover damage to your vehicle.
- Comprehensive plans
A comprehensive policy covers damage to your vehicle apart from bodily injury, death, or damage to property of a third party.
When you apply for Two Wheeler Insurance, you will get a liability only policy by default. You can choose to opt for a comprehensive policy in addition to your limited cover liability only policy.
Factors that Affect Two Wheeler Insurance Premiums
- Cubic capacity
There are three categories of cubic capacity as per the India Motor Tariff.
- 0-150CC
- 150-350CC
- 350CC and above
Remember an increase in cubic capacity would mean that your insurance premium would also be higher.
- Zone of purchase
Where did you buy your bike, again? This is also an important factor in deciding your Two Wheeler Insurance premium. Let’s tell you about the two different zones.
Zone A includes the cities Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune.
All other cities fall under Zone B.
The premium charged for vehicles bought in Zone A cities is generally higher than that of those bought in Zone B cities.
What cover do you choose?
You get a variety of Two Wheeler Insurance covers to choose from. Collision cover, cover against theft and fire, cover against vandalism, and pillion rider insurance. Take your pick or take them all!
Insured Declared Value (IDV)
The IDV of the two-wheeler is decided by the age of the vehicle. This is the amount for which your two-wheeler is insured. This value is decided after considering the selling price and the depreciation based on the vehicle’s age.
No Claim Bonus
If you’re a responsible rider and don’t make a claim on your Two Wheeler Insurance for an entire year, you are eligible for a discount on your premium.
The least No Claim Bonus you can get on you Two Wheeler Insurance is 20%. For every subsequent year the NCB discount increases by 10% every year. The maximum limit on the discount is 50%.
Third party claims are limited
You can claim third-party damages up to Rs. 7,50,000 (as provided for by the Insurance Regulatory & Development Authority of India (IRDA). If you want, you can choose to limit the cover to a minimum of Rs. 6,000. Of course, the actual amount of cover will depend on your policy.
Change of ownership
If you decide to sell your bike at some point, you can also transfer your insurance to the new owner. But, remember to inform your insurance provider within 14 days of the transfer.
Change of vehicle
You can continue to use your existing Two Wheeler Insurance if you get a new two-wheeler. You must remember that your insurance premium will be decided on a pro-rata basis.
Uninsured motorist cover
Many people don’t have third party cover although it is compulsory. In this case, if you are involved in an accident and the negligent party is uninsured, an uninsured motorist cover will protect you.
Now you can better understand Two Wheeler Insurance.