Two Wheeler Insurance

As per the Indian Motor Vehicles Act, 1988, all vehicles plying on the Indian roads must have a third party liability cover. The liability bike insurance policy is mandatory to ensure that in case of a road accident, the person being injured or property being damaged by your vehicle is compensated.

The premium of liability insurance cover is calculated on the vehicle's engine capacity (cc). The premium of comprehensive cover is calculated on the vehicle’s make, model, variant, RTO location, and the age of your vehicle.

The third party liability insurance cover premium for your two wheeler is decided by the IRDAI. The premium for liability cover changes every year. Whereas, the premium for comprehensive two wheeler insurance is decided by the insurance company from whom you are purchasing the insurance policy.

You can save a lot of money on premium by buying and renewing insurance on time. Apart from that, the following would help you to save money on insurance premium:

• Comparing premium rates of plans offered by different insurance companies
• Buying only necessary add-on covers
• Utilizing accumulated No-Claim Bonus (NCB)
• Installing anti-theft device
• Opting for Voluntary Deductibles
• Buying Multi-year/Long-term two wheeler insurance policy

Every two-wheeler owner must at least have a mandatory third party liability cover.

The third party liability cover does not cover vehicle's own damage either by natural or man-made perils and vehicle theft. A comprehensive insurance policy provides financial protection against both third party liability cover and own damages incurred on the two wheeler due to natural or man-made perils and bike theft.

You can either opt for a secured loan or an unsecured loan. However, the first time buyers mostly opt for an unsecured loan. You can apply for two wheeler insurance online or offline. You can use EMI calculator tool to find out the EMI's.

In case you have purchased a brand new two wheeler on EMI, it is highly advised that you must buy a comprehensive cover with necessary add-ons to get complete protection. Because, if there's any damages to your two wheeler due to an unfortunate accident, you would have to bear all the repair cost if you just have a third party insurance. Whereas, if you have a comprehensive two wheeler policy, the garage repair cost is covered under the comprehensive policy. It is also suggested to buy add-on covers such as Zero Depreciation – helpful in case of garage repair bills and Invoice cover or Return to Invoice (RTI) – helpful in case of bike theft. These are useful add-ons and must have add-ons in case of new two wheeler.

A comprehensive two wheeler insurance policy covers damages incurred due to all natural and man-made perils including floods. However, damages to the vehicle's engine or engine parts is not covered under a comprehensive policy. The same can be covered by an engine protection add-on cover.

Generally, there's no need to transfer two wheeler insurance policy unless you are selling your two wheeler to someone as a second-hand vehicle. In which case, you must ask the buyer to transfer the insurance policy on his/her name.

The insurance company will only approve the claim if the insurance policy is in the name of the owner of the vehicle. Therefore, if you have bought a bike or any other two wheeler from someone and you are not the first owner of the vehicle, it is recommended to transfer the insurance policy in your name. The transfer of the bike insurance in your name ensures that your claim is not rejected for this reason.

To transfer the insurance policy, the vehicle should have been transferred in the name of the transferee.

The transferee needs to submit the RC of the vehicle, the date of vehicle transfer along with the application in writing within a specific time.

Other details that the insurance company requires are the name of the previous policyholder and vehicle owner, policy number and date of insurance to issue a fresh insurance policy.

A No Claim Bonus is a discount on the own damage premium under the comprehensive policy given by the insurance company on renewal if there were no claims lodged in the previous year by the policyholder. For instance, this is the second year from the date of your bike purchase and you renew your two wheeler comprehensive policy. If you have not lodged any claims in the first/previous year, you get a 20% of discount on your own damage premium as a reward for riding safely.

A No Claim Bonus increases with every claim-free year. NCB is cumulative in nature, so it means you can increase the percentage of discount for every claim-free year.

The below table shows the increase in the percentage of discount:

To gain the maximum benefit of NCB, it is advisable not to claim for minor damages or dents.

Yes, as the NCB belongs to the rider and is not attached to the vehicle, No Claim Bonus is transferable on the name of the owner of the vehicle even after the buying a new or old two wheeler and even if you change to a new insurance provider. So, on renewal, if there’s an accumulated NCB, the owner can avail the discounts.

First, you need to ensure the old insurance policy is cancelled. When you cancel the old insurance policy, you will receive an NCB retention letter. To avail the bonus on the insurance policy, you need to submit the NCB retention letter to the new two wheeler insurer.

There are many add-ons that you can attach to your comprehensive policy such as Pillion Rider Personal Accident cover, Zero Depreciation, Engine Protection, NCB Protection Cover, Return to Invoice, Roadside Assistance, Consumable cover, etc.

When you buy a liability cover, a personal accident cover is provided for the rider-owner on a premium amount of Rs.50 for a sum insured of Rs.1 lakh. There are many insurance companies that provide optional personal accident cover of higher sum insured on paying an additional premium. Moreover, there’s an optional pillion rider personal accident cover, which can be opted by paying an extra premium.

When you buy a mandatory third-party two wheeler insurance, you get a personal accident cover of up to Rs.1 lakh for a premium of Rs.50. A pillion rider/passenger accident cover is optional and can be opted by paying an additional premium.

In case of an accident and unfortunate events the coverage is payable by the insurance company in the following ways:

A third party liability cover is mandatory as per the Indian Motor Vehicles Acts, 1988 for all the vehicles plying on the Indian roads. If you are riding a bike without two wheeler insurance you would be charged a fine of Rs.2000, and/or be imprisoned for 3 months. It is therefore suggested not to ride your vehicle without an insurance policy.

It is easy to buy a second-hand bike with the right kind of knowledge. To know how to buy second-hand bike read – Buying Second-hand Two Wheeler.

At the time of claims with a cashless two wheeler insurance policy, you can opt for cashless garage service through any of the authorised network garage of your insurer where you can get your two wheeler repaired without paying any cash.

Each insurance company in India has set up their garage network. These are authorised garages by the insurance company wherein after your claim approval by the insurance company you can get your two wheeler repaired without paying any cash. The repair bill is submitted to the insurer and the company pays the bill. You must always try to avail cashless claim service by opting for bike repair in such network garages.

To avail cashless garage facility, you need to ensure that the bike damages are repaired in an authorized garage of your insurance company. You can simply check the list of network garages online. Find the nearest authorised garage online from the list or simply contact the insurance company.

The first step to avail cashless service is to inform your insurance provider about the incident. Thereon, an inspection is setup and you need to submit the repair estimate bill provided by the garage. Since it is an authorised garage, the insurance company pays the bill after the repair is done and the final repair bill is submitted.

A long-term or a multi-year two wheeler insurance policy is a way to insure your vehicle for 3 years under a single policy. Generally, you need to renew your two wheeler insurance policy every year, but with a long term two wheeler insurance policy you stay covered for 3 years and need to renew at the end of 3rd year.

The following are the benefits of buying a long-term two wheeler insurance policy:

• You don’t have to worry about renewal every year
• Fewer chances of riding your vehicle without a valid insurance policy
• You save 15-20% money on the annual third party premium hike
• Insurance companies offer discounts on own damage premium if you opt for a long-term insurance policy
• You can protect NCB if you have a long-term insurance policy, the NCB does not come to zero

You can simply check the list of the companies offering long-term two wheeler insurance using Coverfox’s insurance premium calculator. Once the list of the insurance companies is displayed, from the drop down menu below each company, you can select the number of years for which you want insurance policy. You can select 1, 2, or 3 years and accordingly the premium amount will be charged.

Prior to the implementation of GST, service tax and cess was 15% tax on the two wheeler insurance, but after GST, you will have to pay 18% tax on the two wheeler insurance policy purchase.

If you are buying a 2 wheeler insurance for someone else, all you need to do is to enter the bike details to get quotes online, once you finalize the insurance company, while filling the policy document, kindly enter the details of the bike owner so to ensure the policy is in the name of the vehicle owner.

When the vehicle has suffered damage that is beyond repair (more than 75% of the IDV) is called Total Constructive Loss.

In case of bike theft, the insurance company pays full IDV to the policyholder. The policyholder needs to submit the original and duplicate keys with “No Trace Report” from police.

In case of TCL, the insurance company pays the IDV less salvage value to the policyholder.

You need to change the address in the policy with the support of your new changed address.

If you have purchased online, you can simply login to the account and download a copy to take a print of it. Or check your registered email id. If you haven’t purchased online, request your insurance provider with your bike details and engine chassis number to reissue the policy.

You need to visit the nearest RTO in your city and give a test. After passing the test you will receive the driving license.

Regional Transport Office (R.T.O) is responsible to carry out the functions and provisions as mentioned in Motor Vehicles Act, 1988. Every city and state of India have their own RTO (Regional Transport Office), which ensures the enforcement of Motor Vehicles Act, 1988. It is headed by the Transport Commissioner. The basic functionality of RTO Is to issue license, permit to vehicle, vehicle registration, etc.

Depending on the registration zone (RTO location) of the bike, the premium varies. In India, RTO zones are categorised as Zone A and Zone B.

Zone A: Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Pune, and Ahmedabad

Zone B: Rest of India

Depending on whether the two wheeler is registered under the Zone A and Zone B, the premium varies for the same bike model and variant. The two wheeler insurance for a bike registered under Zone A will be charged more than the same bike registered under Zone B.

A zero depreciation is an add-on cover, which you can attach to your comprehensive insurance policy. If you lodge a claim in case of an accident under a comprehensive two wheeler insurance, the repair cost associated to the repair or replacement of the bike’s depreciable parts are not covered. The costs of repairing or replacing depreciable parts must be borne by the owner of the vehicle (policyholder). But, if you have a zero depreciation add-on cover, these costs are covered and paid by the insurance company.

The third party two wheeler premium is based on the engine capacity. The higher the engine capacity (cc), the higher is the premium.

The premium for the comprehensive two wheeler is depended on the various factors such as vehicle’s make, model, variant, RTO location, age of the vehicle, accumulated NCB, add-on covers (if any), discounts (if any), and the number of years for which the policy is purchased.

Unless and until opted for a long-term or multi-year two wheeler insurance policy, the policy is valid for one year from the date of policy issue.

Under the third party liability cover bike’s own damage is not covered.

Under the comprehensive liability cover and own damage cover, but following things are not covered:

• Any claim lodged when the policy is not active or expired
• Any kind of mechanical wear and tear due to aging
• Any kind of mechanical or electrical breakdown
• The policyholder riding bike without legal and valid license
• The policyholder riding bike under the influence of alcohol, drugs or any intoxicants
• Using your private bike for commercial purposes

Keep such exclusions in your mind to ensure your claims are legit and approved without any hassle.

You can easily compare and renew your two wheeler insurance policy online. You have to enter your two wheeler’s detail to check the premium quotes. Enter your make, model, variant, RTO location or just enter the number of your vehicle, once the premium quotes from the top insurers are fetched you can choose the best policy for your vehicle.

You can now renew your expired two wheeler insurance policy without any hassle. No need of inspection or any paper work, just enter your two wheeler’s details as you would have done it with your active policy.

No, you can renew your two wheeler insurance policy without any inspection also.

No, your old bike insurance is not valid for your new bike as the engine capacity, engine chassis number, age of the vehicle varies. You need to buy new two wheeler insurance policy for your new bike with the details of your new bike.

You should compare the premium quotes from the top insurers to choose the best policy for your vehicle. Different insurance offers different Insured Declared Value (IDV) to your bike and accordingly you are charged the premium. When you compare two wheeler insurance, you can choose the best IDV for yourself and purchase the best policy.

Without a valid insurance policy, you would be charged a fine of Rs.2000, and/or be imprisoned for 3 months. Besides, without a valid policy, any unfortunate incident that would cause damages to or by your bike would be borne by you.

Yes, you can change your current two wheeler insurance provider and buy a policy from another insurance company.

You need to cancel the old policy. And buy the new two wheeler insurance policy. But you must remember that any time in between the changing of insurer, you must not be without an insurance policy.

Any person sitting behind the rider on the bike can be covered under pillion rider cover. This cover provides financial protection to the pillion passenger.

Voluntary Deductible, in a two wheeler insurance, is the volunteered amount that a bike owner agrees to pay at the time of claim repairs and against this gets a discount on the own damage premium. You agree to pay only in case you lodge claim, however, you get a discount based on the amount you agree to pay.

The below table shows the percentage of discount you get on own damage premium

The compulsory deductible amount is the mandatory amount the policyholder pays on the approval of claim. This is not dependent on the garage repair bill. It is dependent on the engine capacity (cc).

Compulsory Deductible in two wheeler insurance:

• For two wheelers with engine capacity less than 350cc: Rs. 50/-
• For two wheelers with engine capacity above 350cc: Rs. 100/-

If you have purchased a wrong two wheeler insurance policy, for instance, the vehicle model is not the same as you own, then you need to cancel the policy.

If you cancel after the start of the risk date – policy start date, the refund would be on pro rata basis. It is advisable to cancel the policy before the policy start date.

Only losses or damages caused to the third party property or bodily injury due to the insured is covered. Any loss or damages caused to the insured bike is not covered.

In case of the third party property loss, the insurance company will cover up to Rs.7.5 lakh.

You can trace the authorised cashless garage network facility in the location you would prefer with the help of information posted on the insurers’ website. Or check the list of network garages listed by the insurance company you wish to buy insurance from.

You would be charged a fine of Rs.2000, and/or be imprisoned for 3 months. It is advisable not to ride your bike without an insurance policy.

Buying a second hand two wheeler insurance can be a tricky thing. However, we have written an article so that you can avoid all the possible mistakes. Read - Buying Bike Insurance: Mistakes you Will Never Make Again

NCB, which stands for No-Claim Bonus, is a discount in premium given to the policyholder when no claim has been filed during the term of the two-wheeler insurance policy.

To file a claim with a two-wheeler insurance company, first get in touch with Insurer’s claim team representatives via call or email. The representative will inform you about the various documents that need to be submitted to get the claim process moving. The kinds of documents required along with the filled-up claim form will differ depending on the type of claim filed. A FIR will have to be filed in case of damage or loss of vehicle. A surveyor will be appointed to come and inspect the vehicle. If the claim filed is genuine, the insurance company will make the necessary claim payment.

It has been observed that two-wheeler insurance companies offer better discounts on long-term policies. Additionally, such policies protect one from incurring the annual hike on premium rates since the amount that is first paid will keep the policy active for the 2 or 3 years it has been availed. Policyholders do not have to bother themselves with the hassles of keeping track of premium payments since the coverage is for a longer period.

Two-wheeler insurance policies can be bought either via the website of an insurance company or that of an insurance broker. The advantage of choosing an insurance broker is that users can compare multiple policies and accordingly decide which policy to go for. Almost all insurance companies and brokers provide the facility of making online payments on their portals.

If your two-wheeler insurance is about to expire, you can get in touch with the insurance provider and intimate them about the same. Many insurance companies provide the facility of renewing insurance covers instantly on their websites as well. Your vehicle may need to be surveyed for the renewal process. Some of the documents that need to be submitted include the bike’s registration copy, old insurance papers and the renewal application form.

Policy copies are generally emailed across to the policyholder on the day of purchase. A copy of the same is also sent by post to the residential address of the vehicle owner.

Yes, you can. To transfer two-wheeler insurance, it is necessary that the ownership of the vehicle is successfully transferred to the new owner. Once the transfer is complete, the entity can initiate the process to transfer two-wheeler insurance. The insurance company will begin the policy transfer after the necessary documents and forms are submitted and appropriate fee is paid.

If your two-wheeler insurance has lapsed, then there is no way to file a claim. To ensure this does not happen, always make sure to renew your two-wheeler insurance on time.

No, the full premium of the two-wheeler insurance policy has to be paid before the policy coverage can commence.

Yes, no-claim bonus is transferable. NCB is tied to the policyholder and not to the two-wheeler. A written request has to be given to the new insurer or to the same insurer for the new policy for transferring the NCB from the current plan to a new one.

IDV, or Insured Declared Value, is the maximum sum assured that an insurance company would offer against a two-wheeler in the event of theft or major damage, or total loss of the insured vehicle due to an accident. This sum assured is usually equivalent to the prevailing market value of the two-wheeler, at the time of its purchase.

It is advisable that you bargain for a sum assured that is closest to the current market value of your two-wheeler. This will enable him/her to claim a fair amount of compensation in the event of theft or severe damages. At times, insurance companies may offer to lower the IDV by about 5% to 10%, as per the discretion of the applicant, when the applicant wishes to pay a lower premium amount and vice versa. When a policyholder files a claim, insurance companies usually consider the age of the insured two-wheeler.

Yes, most leading insurance companies offer their policyholders the convenience of renewing their two-wheeler insurance policy online. You can renew your bike insurance online through either of the following options:

Your existing insurer’s official website: You can visit the official website of your insurance company and follow the online insurance renewal procedure. Remember that you must mention the required details accurately. These details include your two-wheeler registration number, your existing policy details, your contact number and email id, etc. Next, you can proceed to the online payment method. The accepted online payment options usually are debit/credit card and net banking.

Third-party websites: If you want to change your existing insurance company, you can compare the premium rates being offered on two-wheeler insurance policies from other insurers. After you have made your choice, you can fill up the online form of your chosen insurer with accurate details, and then pay online.

IDV, or Insured Declared Value, is the maximum sum assured that an insurance company would offer against a two-wheeler insurance, in the event of theft or major damage or total loss of the insured vehicle due to an accident. This sum assured is usually equivalent to the prevailing market value of the two-wheeler at the time of its purchase.

It is advisable that you bargain for a sum assured that is closest to the current market value of your two-wheeler. This will enable him/her to claim a fair amount of compensation in the event of theft or severe damage or total loss. At times, insurance companies may offer to lower the IDV by about 5% to 10%, as per the discretion of the applicant, when the applicant chooses this, he/she has to pay a lower premium amount and vice versa. When a policyholder files a claim, insurance companies usually consider the sum assured and age of the insured two-wheeler.

Follow these simple steps to claim third party insurance:

• Get in touch with the police and file an FIR to officially report the accident. This FIR document is an essential proof that will have to be submitted to initiate the claim.

• Contact your insurance company about the accident on phone or email. Although insurance companies usually allow a period of 48 hours to get in touch with them, it is recommended that you report the accident as soon as possible to prevent unnecessary delay in the claim process.

• It is best to keep a visual record of the injuries and damages by clicking photos as references in case discrepancies arise in the future.

• Present as much details about the loss or accident as possible like registration number of the vehicle that has caused the accident and other essential information. Make sure that these details are accurate and there is no misrepresentation or fabrication of information. A false claim can adversely affect the claim result and even lead to claim rejection.

• Register a case with the Motor Accident Claims Tribunal Court that is under the jurisdiction of the location where the accident had occurred. In case that is not possible, you can also file the case in the Motor Accident Claims Tribunal Court that covers the jurisdiction of your residence or the residence of your third party. Any other civil court does not have the authority to settle two wheeler insurance claims.

In an insurance policy, the insured or the policyholder is referred to as the first party. The first party is eligible to receive the pre-determined sum assured from his/her insurance company, which is known as the second party, in the case of a loss, injury or accident that may be caused by you to any another entity is known as the third party.

According to the July 2018 directive by the Supreme Court, five-year upfront third-party liability cover has been made mandatory on all two wheeler insurance policies. This regulation is applicable for all newly purchased two wheelers bought on and after 1st September 2018.

While they are mentioned in your policy document, some of the common ones that you would require are:

• Duly filled in claim form
• RC copy of the vehicle
• Original estimates of loss
• Repair invoice and payment receipt

In case of theft, you need to first file an FIR with the police (apart from having the other documents mentioned above). Submit a copy of the same to your insurance company along with a non-traceable certificate and the keys of your bike. That’s all!

Buying an insurance policy is as easy as riding a bike. The only two documents you require are:

• Previous insurance copy
• Registration certificate

Like always, there are multiple factors that determine the premium for your new bike.

• The IDV (Insured Declared Value)
• Age of Bike
• Zone of Registration
• Cubic capacity (in case of a third-party insurance)

Generally, your premium won’t be affected majorly. But, if you have a No Claim Bonus that has not yet been availed 90 days before the expiry of policy, you could still lose the benefit. Also, you would have to have your bike inspected by the survey team all over again!

Getting third-party insurance is mandatory for your bike. In case of an accident, you would be legally and financially liable to the third party. However, keep in mind, it doesn’t cover any damages and injuries that have occurred to either you or your bike.

A comprehensive insurance would financially cover your bike from natural calamities such as floods, fire, earthquakes, tsunamis, etc., including man-made destruction such as theft, vandalism and riots. The icing on the cake? It also covers any legal liabilities that arise due to third party damage/injuries!

The compulsory deductible is an amount that is already set by the IRDA. This is the amount that you have to pay at the time of making a claim on your two-wheeler insurance policy. You can choose a voluntary deductible depending on the total amount that you wish to claim. So higher the voluntary deductible, lower the premium. But remember, it is the monetary loss that you have to bear whenever there is a claim.

If you can invest money in financially protecting yourself from third party liabilities, then why not spend a little more on protecting your bike as well? Thus, choosing a comprehensive plan over a third party plan always makes more sense!

Right from the day your policy starts to the day it expires, this entire duration is called as policy period. So always make sure you renew your two wheeler insurance policy before the due date; because even a day’s lapse can change everything!

Yes, you can. But then, claims should not be raised subject to 30 days prior to the expiry date of the policy. Then, even a refund cannot be raised. In fact, a nominal cancellation fee might also be charged in such a case. So always take care!

The Insured Declared Value of your bike is determined on the basis of the manufacturer’s listed selling price of the brand or model.

We only have three words for anyone who ever asks us this question: Yes, you do!

Once you make a claim for your two-wheeler, you lose out on NCB (No Claim Bonus). Hadn’t you raised a claim, you could have availed NCB, thus reducing your premium in the next policy year. But if you did, sadly, the premium automatically increases the following year.

Sadly, no. But no need to worry, to get your co-rider covered as well, you would only have to opt for an additional Personal Accident Cover for pillion passenger!

In case of theft, you can always claim the entire IDV amount. Since, IDV is always calculated on the age of your vehicle, geographical location, and engine capacity, higher the IDV, higher the premium.

Yes, it is. Most of the times, man-made disasters and natural calamities are also covered. However, this differs from insurer to insurer, which is why one must read their policy document carefully!

It is possible! Just 45 days before renewal, inform your existing insurer and then accordingly, you can port your insurance policy to another insurer. It’s that simple.

Having add-on covers always serves as a blessing in disguise. The Nil or Zero Depreciation Cover lets you have a full claim on the value of the parts without deducting depreciations on the parts that are replaced after an accident. Depreciation takes a major part of your expenses. To make sure you escape that, opt for a zero depreciation add-on cover by paying a little extra premium.

Personal Accident Cover for Pillion Passenger protects the pillion rider as well. Accidents can cause grave injuries to both rider and co-passenger! So, in a way both carry equal risk. With the help of this add-on, pillion passenger can be compensated up to a certain amount for partial and permanent disability. The premium is slightly higher, but worth it!