TWO-WHEELER / BIKE INSURANCE IN INDIA
The Motor Vehicles Act, 1988 introduced two-wheeler insurance in India. This insurance segment is regulated by the Insurance and Regulatory Development Authority of India (IRDAI). Two-wheeler insurance protects your bike against damage, loss, theft, and covers any damages caused to a third party by the insured vehicle. It also provides owner-driver insurance that pays reimbursement in case of severe injury or death of the owner.
With the advent of digitization, it has become easier to buy insurance policies online. Bike insurance policies can be purchased or renewed online through the official website of the insurance provider or other third-party websites that provide the services. These websites allow you to compare the features and prices of the insurance policies of different insurance companies and buy the one that best suits your requirements.
TYPES OF INSURANCE POLICY FOR BIKES ONLINE
Bike insurance in India is of two types based on the nature and extent of coverage provided by it.
- a) Comprehensive Coverage Insurance Policy – It is an all-encompassing policy. It covers the vehicle against any damage, loss, theft, and repairs. It also provides a cover against damages caused by the car to any third-party. Finally, if the vehicle meets with an accident, the policy provides "Personal Accident Cover" to the owner-driver and pays reimbursement in case of severe injury or death.
- b) Third-Party Coverage Insurance Policy - It is a Liability Only Policy. It protects the owner-drivers against any damages caused to a third-party (both to the third-party driver and third-party vehicle) when the insured person's vehicle is at fault. This cover pays for any financial liability that arises out of the accident. In India, it is the basic and mandatory bike insurance policy as per the Motor Vehicles Act, 1988.
A recent directive from the Supreme Court of India has made it mandatory to own a 5-year policy for all two-wheelers brought after 01/09/2018. The policy has to be bought at the time of purchase of the vehicle and failure to do so can attract heavy penalties.
BENEFITS OF ONLINE BIKE INSURANCE
- Cost-effective eliminates commissions to middle-men and agents
- Reduces paperwork
- Helps in comparing prices and choosing the best online policy
- Easy renewals
- Helps understand the factors affecting bike insurance premium
HOW TO APPLY FOR ONLINE BIKE INSURANCE
As per the new Supreme Court directive, insurance cover should be compulsorily purchased while buying the new two-wheeler and will be provided by the dealer himself (You have the option of suggesting the insurance company of your choice). For renewal of existing policies, just before the policy term expires, you can renew the coverage on the insurer’s web portal under the relevant section. The renewal should be done before the expiration date to avoid inspection charges.
Applying for a bike insurance policy online helps you to seamlessly calculate the insurance amount and the premium so that you can compare multiple service providers and choose the one best for you. To arrive at the right figures for bike insurance, you need the following data –
- Registration number of the two-wheeler
- Manufacturing Year
- Registration City
- Make and Model of the vehicle
- Status of your previous policy (Active/non-active)
- Mobile number
- No claim bonus
- Net-Banking details to pay for the policy
After making sure you have all the data, visit the official website of the insurance provider and on the home page select “Insurance” -> “Two-wheeler insurance.”
Then select the appropriate window from “Other company renewal,” “same company renewal” or “new two-wheeler policy.” Input all the relevant information as prompted by the screen. Some companies give you the option of a “Personal Accident cover” for the owner-driver.
The premium for your two-wheeler depends upon the type of policy you select. For two-wheeler third-party insurance policies, rates are defined by the IRDAI and are revised every year. The rates provided are for one year, however, its compulsory for owners of two-wheelers to buy third-party insurance for a minimum of five years. These rates are based on the cubic capacity of the two-wheeler.
However, if you select a comprehensive two wheeler-insurance then multiple factors like the Insured Declared Value, Own Damage premium, date of registration, age of the vehicle, registration city, etc. Once you input all the data, the calculator displays the insurance premium applicable for your vehicle.