Two-wheeler Insurance 101

Here’s everything you need to know about Two-wheeler Insurance. You can thank us later.

Although the law makes it mandatory, given the condition of the roads, getting your vehicle insured is a necessity in India. Not just the roads, we all know how keenly (or not) people follow traffic rules. With all this going on, it’s not a wise decision to risk your vehicle, especially if it’s a two-wheeler. Due to obvious reasons, two-wheelers are more prone to accidents and mishaps compared to four-wheelers.

Additional Reading: Zoom Away With A Two Wheeler Loan

To ensure that your two-wheeler is protected against all such damages, you have the option of getting it insured. Two-wheeler insurance plans fall under the general insurance category. It is sanctioned and approved by the Insurance Regulatory Development Authority of India (IRDAI). Apart from the usual damages caused by accidents, a Two-wheeler Insurance plan also offers to cover for damages that result from riots, strikes, explosions, etc. The coverage offered is likely to vary from one insurance company to another. Also, it’s mandatory for a vehicle owner to carry a valid Motor Insurance policy at all times.

What’s The Importance Of Two-wheeler Insurance?

Apart from the obvious reason of protecting your vehicle from damages that can occur during accidents, riots, strikes, explosions etc., the Motor Vehicles Act, 1988, mandates to have a third-party liability insurance cover.

What Are The Types Of Two-wheeler Insurance Plans In India?

There are mainly two categories of Two-wheeler Insurance plans in India. These are:

• Liability-only Insurance: It’s also known as third-party liability insurance. Liability-only insurance is a standalone plan that offers protection to the insured vehicle from legal liabilities to a third party that arise from accidents. It covers third-party injuries, death, and property damage too. However, insurance protection is not inclusive of coverage to the insured vehicle itself.
• Comprehensive Insurance: This category can be further divided into two types of coverage—one that resembles standalone liability-only insurance plan and other that protects the insured vehicle from accidents, theft, in-transit damages, natural disasters, man-made calamities, etc. Apart from this, a special protection plan called Personal Accident cover is offered to the vehicle owner as well.

 Additional Reading: Everything You Need To Know Before Buying Two-Wheeler Insurance Online

What Are The Key Features And Benefits Of Two-wheeler Insurance In India?

• The insurance plan protects your bike and you from damages that can occur as a result of accidents, theft, and damage to the vehicle from floods, lightning, etc.
• Most insurance plans come with the cashless claim facility that can be availed at hundreds of network garages around the country.

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Who Can Apply For Two-wheeler Insurance?

• If you have a valid two-wheeler driving licence, you are eligible to apply for a Two-wheeler Insurance.
• You need to be either self-employed or salaried and your income should meet the minimum income criteria specified by the insurance company.
• In most cases, your first Two-wheeler Insurance policy is a part of your vehicle’s package and lasts for one year. For later years, you need to renew the policy.

How To Apply For Two-wheeler Insurance?

There are two ways to apply for a Two-wheeler Insurance policy—you can either directly visit the website of the policy provider or you can also apply via neutral financial websites.

Additional Reading: Why It’s Important To Renew Your Two-Wheeler Insurance

What’s Long-term Two-wheeler Insurance?

According to your needs and payment preferences, different insurance companies offer insurance plans for different tenures. This tenure may be something between 2-3 years or even more. There are a lot of benefits of opting for a long-term insurance plan. Some of them are:

• You get to avoid the payment of third-party premium hikes that are made on a regular basis.
• You receive a coverage for up to 3 years, which is a long period. That implies that you don’t have to get stressed for missing your premium renewal deadline. You need to renew it only once.
• A long-term Two-Wheeler Insurance policy helps you stay away from service taxes. This is very helpful as you won’t incur any additional expenses during your policy period.
• Making a claim during your long-term policy period will only reduce your No-Claims Bonus (NCB). It won’t reduce to zero but making a claim with a normal Two-wheeler Insurance policy will make your NCB non-applicable.
• Your third-party liability premium won’t get modified at all during a long-term policy period.
• You can get to enjoy a discounted premium when you take a Two-wheeler Insurance policy for a long period.
• For some Two-wheeler Insurance policies, filing a theft claim or a total loss claim can get a refund for your policy for the remaining policy period. This depends on the insurance company.
• You will receive an additional NCB benefit upon the renewal of your long-term policy.
• When a regular insurance policy lapses, many insurance companies tend to make it mandatory to examine the two-wheeler before providing a new policy or renewing the existing one. You can avoid this complex process by taking a long-term policy.

However, you also need to keep in mind that if the premium prices go up in the market, then a long-term insurance policy will force you to pay higher prices.

Got everything you needed? Now let’s help you find the right insurance policy for your two-wheeler.