A two-wheeler bike insurance policy is always an advantage for your vehicle. Not only will it protect your motorbike but will also earn you the tag of being a law-abiding citizen. Third-party bike insurance is mandatory in India as per the Motor Vehicles Act, 1988 and driving around without it will invite hefty fines as well as imprisonment. So, it is crucial to keep your two-wheeler insured at all times.
It is not always necessary to have an expensive policy; instead, go for a plan that will provide complete protection to your bike. Third-party insurance will not cover your vehicle’s damages but only those of the other vehicle. Therefore, having a comprehensive insurance cover is also equally important. It will cover third party liability as well as damage caused to your own vehicle. It also includes protection for you, the policyholder, which is not covered in the third-party insurance.
You can choose the best two-wheeler insurance in India by finding out which insurance providers are providing great insurance plans. There are a few other facts you should know about two-wheeler bike insurance in India that will help you make a good choice of coverage.
- Calculation of the bike insurance premium
Bike insurance in India is of two types:
- Third-Party Bike Insurance
- Comprehensive Bike Insurance
In third-party two-wheeler insurance, the premium rates are determined by the Insurance Regulatory and Development Authority of India (IRDAI). The IRDAI announces the third-party premium rates for both bike and car insurance annually. The rates are calculated on the cubic capacity of the engine. Higher the cubic capacity, higher will be the payable premium.
When it comes to comprehensive two-wheeler insurance in India, the premium prices are determined by the insurance companies based on certain factors, like:
- Make and Model of the Bike: Costlier and luxury two-wheelers have a higher cost of getting insurance than cheaper bikes.
- Engine Cubic Capacity: Similar to third-party bike insurance, higher cubic capacity equals higher premium cost.
- Age of the Bike: Newer bikes have to pay a higher premium than older bikes.
- Geographical Location of Registration and Use: Bikes in metro cities like Mumbai, Delhi, Chennai, etc. have to pay a higher premium than Tier-2 and Tier-3 cities.
- Insured Declared Value: IDV is the current market value of the bike (minus the applicable depreciation). The IDV of the bike determines the sum assured you will receive in case of the total damage or theft of the bike. Higher the IDV, higher will be the bike insurance premium.
- Add-ons Selected: Add-ons offer targeted and specific coverage for your bike that may not be included in the base policy. The more the number of add-ons you opt for, the higher will be the premium.
- Discounts or Bonus: The No Claim Bonus is a discount that you get for not filing a claim in a policy year. You can avail this bonus, in the form of a discount in the insurance premium, when you renew your bike insurance. Insurers also offer multiple discounts and benefits if you buy bike insurance online.
- Buying bike insurance online
To make the insurance process completely hassle-free, buy two wheeler insurance online. And while getting bike insurance, compare the quotes from all insurance providers to see which one is the best option for you. A very simple way of doing this is to use an online premium calculator on an aggregator’s website.
You can buy third-party bike insurance as well as a comprehensive insurance cover online. You will need to fill in your correct personal details such as your name, your address, your identity proof and so on. Next, your bike’s registration details, as well as the bike’s type and model, will also have to be provided.
After feeding in these details, carefully go through all the terms and conditions on the offer documents. These are especially important before you purchase the policy. They will help you decide whether or not you should continue with the purchase. In case there are certain clauses and conditions that are unappealing, you can go back and choose another policy.
- Renewing your bike’s insurance
Just like you can buy your bike insurance online, you can follow a similar process to renew it. A third-party bike insurance policy is valid for a year and should be renewed annually. Always remember to renew your insurance policy as it is a legal mandate to have an active third-party insurance policy if you wish to drive your bike in India.
One important point to remember while renewing your policy is that it should be done at least a day before your old policy expires. This is primarily because of safety reasons and also because a delay in getting a renewal could prove to be expensive. Apart from that, there are certain benefits that could be lost due to the delay.
- The No Claim Bonus
The No Claim Bonus or the NCB is a financial reward in the form of a discount that is given by your insurance provider for not filing a claim during one entire policy term. The NCB proves that you have been a careful rider and have been able to maintain your bike well. Therefore, there is a discount provided on the next year’s premium. With every year of not filing a claim during the insurance term, the percentage of the NCB increases and could be as much as 50% too!
This is the benefit that is discussed in the previous point. Since the No Claim Bonus is transferable, you can avail it when you renew your online two-wheeler insurance. It is recommended that you renew the insurance before the expiry of the previous one or buy new insurance within a span of 90 days. That way, you will still be able to retain the NCB points.
- Don’t file claims for minor damages
It is not necessary that all kinds of damages to your motorcycle will always be severe. Sometimes, there can be a small dent on the vehicle’s body, for which you can pay from your own pocket. Such an expense will be trivial and does not call for filing a claim.
In reference to the point on the No Claim Bonus, every little claim that you file will count against you. If you do so, then by the end of the year, you will not have earned any NCB points. However, it is necessary that you file a claim when the damage is substantial.
- Exclusions under a two-wheeler insurance
There are a few conditions under which you cannot file a claim for damage to your two-wheeler. When buying a two-wheeler bike insurance online, make it a point to do in-depth research on what all is included and also excluded from your policy. Here are some exclusions where you cannot claim compensation
- For the normal wear and tear of your bike
- Damage due to driving under the influence of alcohol or drugs
- A private vehicle being used for commercial purposes like carrying heavy cargo
- Deliberate, owner-inflicted damage to the car
With all the information that you have on two-wheeler bike insurance, you should be able to get a good and suitable bike insurance policy. Usually, even a standard comprehensive policy does not always cover for all kinds of damages to your motorbike. In these cases, you can benefit from some additional features offered by nearly all reputed bike insurance providers.
These add-ons will help you protect your motorcycle better. No matter what type of bike insurance you buy, it is recommended that you always research all the information you can, to avail the best two-wheeler bike insurance in India.