Things to know about two-wheeler insurance policy

Insurance is a technical concept. This is the primary reason that many individuals lack the essential knowledge about the subject. But one thing that every bike user knows is that nowadays maintaining valid insurance is mandatory as per the Motor Vehicles Department rule. Before you purchase a policy, you have to consider certain major factors.

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Types of Two-wheeler insurances policies

Two wheeler insurance policy plans can be classified into two types:

The third-party policy covers all sorts of financial liabilities and bodily injuries that have been incurred by your vehicle to a third party.
The comprehensive policy covers the third party liabilities for any sort of inflicted damage caused by your vehicle along with all the damages suffered by you and your vehicle. It even pays for the repairs needed due to theft, damage caused by man-made issues and natural calamities as well.

Key Things to Know About Two-Wheeler Insurance Policy

No.	Aspect	Details
1	Types of Two-Wheeler Insurance	Third-party insurance, comprehensive insurance, and standalone own-damage cover.
2	Legal Requirement	Third-party insurance is mandatory in India under the Motor Vehicles Act.
3	Coverage Offered	Covers accidents, theft, natural disasters, fire, and third-party liabilities.
4	Premium Calculation	Premium depends on IDV, bike model, age, location, and add-on covers.
5	Insured Declared Value (IDV)	IDV is the maximum claim amount payable in case of total loss or theft.
6	Add-on Covers	Zero depreciation, engine protection, roadside assistance, and personal accident cover.
7	No Claim Bonus (NCB)	Discount on premium for claim-free years, ranging from 20% to 50%.
8	Policy Tenure	Usually available for 1 year or long-term plans up to 3–5 years.

Coverage vs Exclusions in Two-Wheeler Insurance

Category	Covered in Two-Wheeler Insurance	Not Covered (Exclusions)
Accidents	Damage due to road accidents	Driving without valid license
Theft	Loss due to theft of the bike	Negligence or fraud
Natural Disasters	Flood, earthquake, cyclone, landslide	Normal wear and tear
Man-made Disasters	Fire, riots, vandalism	Mechanical or electrical breakdown
Third-party Liability	Injury, death, or property damage to third parties	Damage to own bike under third-party policy

Available add-ons in two-wheeler insurance policy

The comprehensive plans are lucratively designed with several types of additional benefits, technically termed as add.-on. Compare two wheeler insurance policy online to grab the best deal. Some of the popular Add-ons include:

Zero depreciation coverage:During the claim of the replacement of the bike’s parts, the insurance company pays off all the costs calculated as per depreciated value. Zero depreciation is such a benefit that negates the effects of depreciation, which means the company pays for the entire costs.
NCB protection: NCB stands for No Claim Bonus that is applicable in case of a claim-free year. You can consult insurance brokers online for exact clarification.
Passenger cover: An optional add-on that you can add to your plan as damage coverage for the pillion. It becomes helpful during the accidental death /disability of the pillion.

Discounts on two-wheeler insurance policy

You can enjoy certain types of discounts on the premium value of the plan by online purchasing of the plan, during the installation of the safety devices; by using the accumulated NCB or while buying a long-term policy. You can also avail insurance brokers online.

Claim settlement process on two-wheeler Insurance policy

The claim settlement procedure is one of the most vital steps in this field:

Firstly, you must inform the concerned company while seeking a claim
Take the concerned vehicle to the nearest garage, one that needs to maintain a tie-up with the insurer. This is essential for cashless claim settlement. For non-networked garages, you have to bear the repair costs initially, which gets reimbursed by the company later on.
You have to file an FIR in case of theft of the bike
As you inform the company an appointed surveyor will visit you, after which the repairs will start.
Once the repairs are complete, the company settles the bill.
If the bike is stolen or damaged beyond repairs, the company pays the IDV as your claim of two wheeler insurance policy.
Compare two wheeler insurance policy online to settle for the best.

IDV on Bike Insurance Policy

IDV stands for the current market price of the concerned vehicle, i.e., the maximum limit that you can claim during the complete loss of the bike.

Premium of Insurance Policy/span>

Depending on the engine capacity of the bike, the premium value is decided. There are three categories—0-150 cc, 150-350 cc and 350 cc and above. You can also avail insurance brokers online for detailed confirmation.

Riders in Insurance Policy

In case, you feel that the current plan coverage is not sufficient enough, you can extend it by adding riders to it, costing an extra premium value. You can consult insurance brokers online for detailed clarification.

Practice the technique of defensive driving

You can compare two wheeler insurance policy online for buying the best. It is fast, simple, cost-effective, hassle-free and requires minimal paperwork. You can do your research about different plans and companies before buying.

These are the principal factors that you need to consider before buying a two wheeler insurance policy.

Author Bio

Paybima Team

Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 21 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.