Why do we need a Two-Wheeler Insurance?

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As per the Indian Motor Vehicle Act, 1988, it is mandatory for a two-wheeler plying on the Indian roads to have a valid insurance policy. Two-wheeler insurance plans not only provide coverage against third-party liabilities but also offer comprehensive coverage to its owner/driver. These plans cover Death or Disability of owner/driver and the cost of repair incurred due to damages occurred to the two-wheeler. Some salient features of two-wheeler insurance are stated below for reference:-

  • Covers Against Third-Party Liabilities– Two-Wheeler Insurance gives you a comprehensive coverage against the financial losses that might occur due to unforeseen event/accidents & third-party liability arising in the event of damages caused by the insured vehicle as riding without a valid two-wheeler insurance policy is punishable by law.
  • Personal Accident Cover – One of the major benefits of buying two wheeler insurance is that you get personal accident cover up to the sum of Rs.1 lakh for the individual driver / owner of the vehicle which is payable in case the policyholder suffers total permanent disability or an accidental death.  It also protects against medical treatment costs arising from accidents.
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  • Add-On Coverage: You can append your policy coverage in order to assert additional benefits like Nil Depreciation Cover which secures your two-wheeler against a reduction in the value of its parts with age due to asset depreciation as you can get them replaced without making an additional payout towards depreciation at the time of claim & a Personal Accident Cover to enhance the insurance protection further along with the two-wheeler policy.
  • Protection Against Natural Calamities– Two-wheeler Insurance policies also offer coverage against explicit occurrence i.e. natural calamities and manmade disasters like storms, earthquakes, landslide, strikes, riots, terrorist activities, explosions, theft, etc. In the event of such occurrences, you will be eligible for the pre-decided sum assured as stated in your two-wheeler insurance policy.
  • Online Services: Almost all two-wheeler insurance plans can be purchased or renewed online. It also applies for cases wherein the previous insurance has expired; the customers can renew these policies online without inspection and documentation for most of the Insurance Companies.

What are the different types of Two-Wheeler Insurance Coverage?

  • Third-Party Insurance: It is also known as Limited Liability Insurance, it covers the insured & owner/ driver of the two-wheeler against third party liabilities arising out of vehicular collision, which causes damage or loss to the third party or its property. It is mandatory by law.
  • Comprehensive Two-Wheeler Insurance:  It is also known as Package Policy Insurance as this policy not only provides coverage from third party liabilities but also offers comprehensive coverage to the insured two-wheeler vehicle caused due to vehicular collision, theft and natural calamities. It also covers Disability or Death of the owner/ driver & damages occurred to insured two-wheeler due to an accident.

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​ Benefits of Buying Two Wheeler Insurance Online

  • Facilitates comparison of costs and features of two-wheeler insurance policies.
  • Option to choose between varied payments options like Debit/Credit card, Net Banking, etc.
  • Benefit of additional support through online chat assistance available on POS Portal  to address all your queries while you purchase online
  • Buying your two-wheeler Insurance online offers you transparency in terms of cost & the total expenses involved

How to Secure Maximum Value From Your Two-Wheeler Insurance Policy:-

In order to ensure you get the maximum value for money on your Two-Wheeler Insurance please read through the following:-

Claim NCB:- NCB is a cumulative bonus which is recompensed for every claim-free year if you don’t file a claim during for your two-wheeler during its insurance policy period. The No-Claim Bonus keeps on increasing progressively for each claim-free year until your two-wheeler insurance premium gets reduced up to 50%. Thus you can secure a discount of up to 50% for 5 consecutive claim-free years.

Choose Your Bike/Scooter CC Wisely:- The higher the engine cubic capacity (CC) of your Two-Wheeler, the higher will be its insurance premium. Thus it is wise to choose the exact model & variant of your two-wheeler to get the accurate premium for its insurance.

Know the Age of Your Two-Wheeler:- Older Two-Wheelers have a lower IDV* owing to its amassed depreciation over the years. Hence the premium for an older Two-Wheeler will be lower and vice versa.

Increase the Voluntary Deductible:- A voluntary deductible is the minimum amount that you consent to pay out of the claim amount from your pocket. The higher your voluntary deductible, the lesser will be your two-wheeler insurance premium.

*What is IDV?
IDV (Insured Declared Value) is the current market value of your two-wheeler which is calculated after deducting the depreciation amount. It is an important component of two wheeler insurance as it determines the amount of compensation that will be paid to the Insured in case of theft or total destruction of the two-wheeler. In such scenario, the IDV is paid as “Sum Insured”.

 

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