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FAQ`s - Two Wheeler Insurance

Why do I need a Two wheeler Insurance Policy?
Your Two wheeler is your prized possession! Availing a comprehensive insurance policy is prudent, which not only covers your Two wheeler, but also your family members pillion riders in your two wheeler.

A Two wheeler Insurance Policy is mandatory under the Motor Vehicle Act. Every two wheeler owner must have an insurance which covers third party injury, death or property damage.

With Two wheeler Insurance, you can cover-
 
  • Two wheeler against theft, accidents, disasters such as floods, earthquake, fire, etc.
  • Family members (including self) with Personal Accident Policy
  • Pillion riders
  • Damage to someone else's vehicle or property
  • Injury/Death of another person due to accident caused
What is third party?
Third party refers to people who are not your family members or property you don't own
What are the factors that determine the premium rating for Two Wheelers?
  • Insured's Declared Value (IDV)
  • Cubic Capacity of the vehicle
  • Geographical Zones
  • Age of the two wheeler
The geographical zones are-

Zone A - Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi and Pune.
Zone B - Rest of India
What is Long Term Two Wheeler Comprehensive Insurance?
It is a COMPREHENSIVE insurance policy to cover your vehicle against potential risks of theft, accidental damage to your vehicle , liability arising due to accidents caused to third party  for a period of two/three years  through a single policy document. 
Can a customer cancel his policy during the tenure of his policy?
Yes, the policy can be cancelled by the customer with 7 days notice to the Insurer and the company will cancel the policy on Short period basis and refund of premium if any, will be made. The refund will be subject to no claim under the policy and retention of minimum premium of Rs.100/-. But cancellation would be made only after ensuring that the vehicle is insured elsewhere at least for Liability Only policy.
What are the factors that determine the premium rating for long term two wheelers?
Factors that affect / reduce your 2 wheeler insurance premium are:  
  • Insured Declared Value or IDV (present market value of the vehicle)
  • Cubic Capacity (CC) of the vehicle
  • Place of registration (Zone A / Zone B)
  • Age of the vehicle
  • Policy Tenure 2 /3 years
What will be the depreciation logic for arriving at the IDV for the vehicle?
IDV for each year (1st year, 2nd Year and 3rd Year) will be computed as per depreciation chart in Motor Tariff. The same will be reflected in the policy wordings. An illustration is given below   Example: A Two wheeler invoiced at and purchased on 01.06.2013 for Rs.40,000 shall be covered for following IDVs for the Long Term Motor Two Wheeler Package Policy during 01 06 2016 to 31 05 2018:  

Period of Insurance

Depreciation

IDV

From

To

01.06.2016

31.05.2017

30%

28,000

01.06.2017

31.05.2018

40%

24,000

01.06.2018

31.05.2019

50%

20,000

 
If there is TP premium revision during currency of the policy, whether additional premium will be collected from the customer?
No additional premium will be collected from the customer if there is TP premium revision during currency of the policy.
What is the minimum premium to be charged for long term two wheeler policy?
Minimum premium is Rs. 200 for a 2 year policy and Rs. 300 for a 3 Year policy
Is there any age restriction for long term two wheeler policy?
Maximum Permitted entry age for Long Term 2W policy is 10 years. At the time of inception of policy if the age of vehicle is 10 years or less this product can be offered.
What is deduction for depreciation?
The following rates of depreciation shall apply for replacement of parts for partial loss claims in respect of all categories of vehicles / accessories.

SL.NO

CATEGORY

RATE

1.

Rate of depreciation for all rubber nylon/ plastic parts, tyres and tubes, batteries and air bags

50%

2.

Rate of depreciation for all fibre glass components

30%

3.

Rate of depreciation for all parts made of glass

Nil

4.

Rate of depreciation for all other parts including wooden parts is to be as per the following schedule

 

 

AGE OF THE VEHICLE

% OF DEPRECIATION

Not exceeding 6 months

Nil

Exceeding 6 months but not exceeding 1 year

5%

Exceeding 1 year but not exceeding 2 years

10%

Exceeding 2 years but not exceeding 3 years

15%

Exceeding 3 years but not exceeding 4 years

25%

Exceeding 4 years but not exceeding 5 years

35%

Exceeding 5 years but not exceeding 10 years

40%

Exceeding 10 years

50%

 
Can we cancel an existing annual policy and take a long term policy covering the same risk?
Customer has an option to cancel the existing annual policy and take a fresh long term policy by paying necessary premium subject to submission of proposal form applicable for Long term 2W package policy. The cancellation of existing policy will be on pro rata basis and subject to no claim.
If initially customer opted for two years policy, can he/she extend the same for the third year?
No customer cannot extend his 2 year policy to 3 year policy. He can cancel his 2 year policy and take a new 3 year policy.
What are the different types of Two wheeler Insurance Policies and what does it cover?
  • Two wheeler here is the one used for for social, domestic and pleasure purposes and also for business purposes excluding the carriage of goods other than samples by the insured or his employees and not for Hire or Reward
  • There are 2 types of Two wheeler Insurance. Personal Accident cover for Owner-Driver is also included in Third Party Insurance. Covering your Two wheeler with at least Third Party Insurance is mandatory, as per the Motor Vehicles Act.
    • (i) Third Party Policy - This is a Liability Only Policy and covers all third party liabilities such as -
      • Bodily injury or death of third party
      • Property Damage of third party
    • (ii) Package Policy - This covers Loss or Damage to the vehicle insured (Own Damage) in addition to the Third party cover. It is also known as comprehensive cover.  You can cover your two wheeler against damage due to -
      • Road accidents
      • Theft
      • Fire accidents
      • Natural disasters such as flood inundation, lightning, cyclone, etc
      • Riot or strike
 
 
How NCB will be computed at the time of renewal?
The NCB will be offered as per your eligibility on renewal.  

Three Year Policy:

For a New vehicle, the NCB will normally begin at 0% and will remain so for the duration of the policy. If there is no accident during the currency of the policy, we will offer 35% NCB on renewal of the policy for the next slab of 3 years. You will be given a choice to opt for either a 2 year or 3 year policy at the time of renewal. If one claim is reported during any of the three years, the NCB on next renewal will drop by one slab to 25%. If 2 claims are reported during the current term of the policy, You will not be eligible for any NCB on renewal.

 

Two Year Policy:

 For a New vehicle, the NCB will begin at 0% and will remain so for the duration of the policy. If there is no accident during the currency of the policy, we will offer 25% NCB on renewal of the policy for the next slab of 2 years. You will be given a choice to opt for either a 2 year or 3 year policy at the time of renewal. If one claim is reported during any of the two years, the NCB on next renewal will drop by one slab to 20%. If 2 claims are reported during the current term of the policy, You will not be eligible for any NCB on renewal. The same logic will follow for old vehicles for various slabs of eligible NCB at the time of taking the policy. If You are eligible for NCB, You will be offered that NCB for the period of three years. On renewal, the next slab of NCB (as provided in the Policy Wordings) will be offered.   An illustration of NCB applicability at renewal for various scenarios is given below  

Expiring Policy Tenure - 2 Years

NCB at inception

No of OD Claims

NCB eligibility on renewal

0%

0

25%

0%

1

20%

0%

2 or more

0%

20%

0

35%

20%

1

25%

20%

2 or more

0%

25%

0

45%

25%

1

35%

25%

2 or more

0%

35%

0

50%

35%

1

45%

35%

2 or more

0%

45%

0

50%

45%

1

45%

45%

2 or more

0%

50%

0

50%

50%

1

45%

50%

2 or more

0%

 

 

Expiring Policy Tenure - 3 Years

   
NCB at inception

No of OD Claims

NCB eligibility on renewal

0%

0

35%

0%

1

25%

0%

2 or more

0%

20%

0

45%

20%

1

35%

20%

2 or more

0%

25%

0

50%

25%

1

45%

25%

2 or more

0%

35%

0

50%

35%

1

45%

35%

2 or more

0%

45%

0

50%

45%

1

45%

45%

2 or more

0%

50%

0

50%

50%

1

45%

50%

2 or more

0%

                   
What are the modes of premium payment?
All the existing modes of premium payment will be applicable for Long Term Policy as well.
Will we issue three separate policies or only one policy for the entire policy period of two years or three years?
Only one policy will be issued for the entire policy period.
Is Name transfer endorsement permitted? If yes, whether transferee will continue to get the long term benefits?
Name transfer endorsement is permitted in the policy as per tariff guidelines subject to NCB recovery for remaining period if applicable. Transferee will continue to get the long term benefits.
What are the endorsements allowed during the currency of the policy?
All endorsements as per policy terms and conditions are allowed.
What to do in case of Theft claim?
  • If your two wheeler has been stolen, the first thing to do will be to file a police report.
  • Notify your insurance company as soon as you file the police report, this will help in case the thief has caused some damage to others with your two wheeler. Also please note, your insurance company will not process your claim if you have not filed a report with the police.
  • When you notify your insurance company, provide them all the details of loan/lease of your two wheeler along with the FIR.
  • Provide them with a description of your two wheeler, mileage, service record if any. Also submit the list of personal items stolen along with the two wheeler
  • It is also important to inform your RTO of the theft.
  • Inform your financier immediately of the theft and ask them to discuss the case directly with your insurer this might expedite the claim process.
  • In case the police recover the vehicle, inform your insurer about the same.
  • If the vehicle is recovered, the Insurance company is liable to pay compensation on damages caused to the vehicle as per the terms and conditions of your policy and for stolen items if any, which are covered under your policy.
  • If the vehicle is not recovered, the police have to provide a Non-Traceable Certificate (NTC) and the court will have to give a final report under sec 173 Crpc.
  • If you have taken a vehicle loan to purchase your two wheeler, the insurer will settle the amount directly to the financier. The settlement amount is on the Insured Declared Value (IDV). This might however differ based on usage and market value.
If the address of the insured is changed during currency of the policy and it results in change of Zone, whether additional premium (if applicable) will be collected?
If there is a change of Zone (from B to A) due to change in registered address additional premium for the balance period will be collected from the insured. 
If there are two policies issued for the same vehicle, with same inception date – one on annual basis and another one on long term basis, whether long term policy be cancelled and amount refunded? If so on what conditions?
We will cancel any one (based on customer request) policy with full refund if both the policies are issued by us covering the same risk.
What is 'compulsory deduction/deductible' under Two wheeler Insurance?
During a Claim, certain minimum amount is deducted from the Insured. The amount deductible is Rs.100/- for all two wheeler Own damage claims

When is an Endorseement is required?
 

An endorsement is a written evidence of an agreed change to a policy. It is a document that incorporates changes in the terms of the policy. If there are any alterations to be done in the policy the customer needs to approach the Insurance Company to effect the change in the policy. This is done by way of an endorsement.

An endorsement may be issued at the time of issuing the policy to provide additional benefits and cover (e.g., legal liability to driver) or to impose restrictions (e.g., accidental damage deductible). The wordings of those endorsements are provided in the tariff. An endorsement may also be issued subsequently to record changes such as change of address, change of name, change of vehicle etc.
Why should one have a comprehensive Two wheeler insurance policy, when the law mandates insurance only for 3rd party injury, death, property loss?
Accidents can occur at any time, any place, even if it is not your fault. But with Insurance you can recover from it financially. With comprehensive Two wheeler insurance, the Insurer will protect you against any loss or damage to the two wheeler and its accessories during following unforeseen events:
  • Fire, explosion, self ignition or lightning
  • Burglary, housebreaking or theft
  • Riot or strike
  • Earthquake (fire and shock damage)
  • Flood typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost
  • Accidental external means
  • Malicious act
  • Terrorist activity
  • Whilst in transit by road, rail, inland- waterway, lift, elevator or air
  • Land slide, rock slide
What are the discounts that can be allowed under Two wheeler policies?
The discounts that can be allowed under the Two wheeler Package Insurance policy are:
  • Voluntary Deductible discount
  • No Claim Bonus
  • Automobile Association Discount
What is Insured Declared Value (IDV)? And how is it calculated?
IDV means Insured's Declared Value. It is the value of the vehicle, which is arrived at by adjusting the current manufacturer's listed selling price of the vehicle with depreciation percentage as prescribed in the Tariff.

Manufacture's listed Selling Price will include Local Duties/Taxes, excluding Registration and Insurance.For the vehicles that are obsolete or aged over 5 years, the IDV will be the value agreed between the Insurer and the Insured.

The value of the obsolete vehicles and the vehicles aged over 5 years are arrived by our Assessment Team with the help of various resources like IMAs, Panel of Surveyors, Two wheeler Dealers, Second Hand vehicle dealers, etc.

Depreciation slabs for arriving at IDV are below:

AGE OF THE VEHICLE IDV

% OF DEPRECIATION FOR FIXING

Not exceeding 6 months

5%

Exceeding 6 months but not exceeding 1 year

15%

Exceeding 1 year but not exceeding 2 years

20%

Exceeding 2 years but not exceeding 3 years

30%

Exceeding 3 years but not exceeding 4 years

40%

Exceeding 4 years but not exceeding 5 years

50%

What are electrical/electronic and non-electrical/non electronic accessories in a two wheeler?
Electrical/electronic Non Electric items which are not supplied by the vehicle manufacturer along with the vehicle are called electrical/electronic accessories. E.g., Interior fittings, alloy wheeler, protection bumpers, saree guard do not come along with the vehicle.
What is No claim Bonus? Under what circumstances it given?
No Claim Bonus is a reward for filing no claim in the previous year. It can be accumulated over a period of insurance. NCB starts with 20% and goes up to 50%
  • NCB becomes nil in case of a Claim
  • NCB follows the fortunes of the customer and not the vehicle
  • The validity period to reclaim NCB is 90 days from the date of Expiry of the policy
  • NCB can be utilized within 3 years (in case if the existing vehicle is sold and a new two wheeler is purchased)
  • NCB recovery to be done in case of a Name Transfer
  • NCB gets transferred to the legal heir in case of Death of customer
  • NCB can be transferred to a new vehicle in case of Substitution of vehicle of the same class
  • NCB earned abroad can be given in India
What benefits shall I get on Long Term Policy?
You shall get the following additional benefits over single year policy:  
  • Convenience on a long term two wheeler policy saves you from hassles like renewing the policy every year and keeping a tab on renewal date.
  • Saves You from Risks Related To Non-Renewal
  •  Longer policy duration means “No worry for annual renewals”
  •  NCB protection during policy period irrespective of claim status of your vehicle
  • Protection from increase in TP premium/ Service Tax subsequent to inception of policy.
  • Differential pricing compared to annual 2W policy
What to do in case of an Own Damage Claim?
  • In the event of an accident-Please arrange for medical attention if anyone suffers injuries. Take down particulars of other vehicles/people involved, if any. Please do not accept any negligence for the accident nor commit to anybody regarding compensation, if any.
  • In the event of injury, death, third party property damage, burglary, theft, house -breaking and damage due to malicious act, riot, strike and terrorist activity, immediate information to the police station concerned is essential.
  • If the accident is severe in nature, and the vehicle cannot be moved, ensure proper protection of the vehicle at the spot. Please do not attempt either to start the engine or drive the vehicle after the accident and before required repairs.
  • Arrange to shift the vehicle to the nearest garage of your choice and ask them to prepare a detailed estimate (labor charges with list of parts along with its prices).
  • Please do not dismantle or alter the accident condition of the vehicle or repair till the vehicle is surveyed/assessed by a surveyor. Also to ensure that no parts or accessories are missing at any point of time.
  • Inform us about any accident or loss immediately.
  • Please submit the duly/completely filled-in claim form to us.
  • Please contact us for guidance on the cashless facility to avail direct payment facility by us to such a repairer.
  • Documentation to be submitted for verification & return (along with a set of photo copies).
  • Original vehicle registration book (including the fitness certification, if it is a separate document).
  • Original driving license.
  • Documentation for submission.
  • Copy of the police complaint (FIR)
  • Estimate of repairs.
  • We may seek additional document(s) or ask for clarification(s) for processing your claim and that depends upon the claim. Please arrange to submit the same.
  • All damages / losses will be surveyed and assessed by a surveyor / assessor and admissibility of the claim and mode of settlement is decided only after the process.
Please note: Ensure that you give us the correct & complete contact details (address /telephone no's / mail IDs in the claim form. If you receive any notice or summon with regard to the accident (other than criminal proceedings, if any), contact us with the petition copy. 
What is Break in insurance? What should I do in case of Break in insurance
Break-in-insurance is when the Policy lapses due to non-renewal of the Policy on time. As per the law, an owner should cover his/her two wheeler with at least third party insurance at all times.
 
If you have a break in your two wheeler insurance at present policy cant be renewed online
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