Buying a vehicle is a big step in everybody’s life because of the magnitude of the investment. If you are having plans to purchase a two wheeler, having an idea about motor insurance and the costs involved will be helpful at the time of choosing an insurance policy. Having third-party insurance for any vehicle in mandatory as per law. More modifications have been made to this law recently. It is now mandatory for vehicle owners to pay a third-party insurance premium for a minimum of three years for cars and five years for two wheelers. This means that bike owners will have to shell out a lot more money for a bike insurance policy compared to what they had to pay earlier.
Since the amount of investment to be made has significantly increased, it is good to know a little more about the different insurance policies available. Having an idea about the different aspects of an insurance policy can help you in making the choice that is best for you and your vehicle.
With many insurance companies offering a variety of options, it can be a difficult task to pick the plan that will suit your insurance needs. It might become a tedious task to search and find the best insurance plan out there. People who are looking to buy an insurance policy can make better decisions if they know what to look for in an insurance policy. The most important criterion for any insurance policy is the Incurred Claim Ratio.
What does Incurred Claim Ratio mean?
Incurred Claim Ratio can be defined as the ratio of all the claims incurred by the insurer to the total premium collected during that period. This can be represented by a simple formula:
Incurred Claim Ratio = Claims Incurred / Net Earned Premium
How Important is Incurred Claim Ratio?
Incurred Claim Ratio is one of the most important criteria to check before you opt for an insurance company. The ratio will give you an idea about the extent up to which you can believe an insurance company when it comes to claim settlement. Generally, companies who have a high incurred claim ratio are a good choice for you.
Although this gives an idea about the extent up to which claims are settled, it does not give a clear idea about the time taken by the company to settle these claims. It is advisable to have a look at the track record of the time taken by companies to settle the claim. Insurance companies with a good Incurred Claim Ratio who settle claims without a lot of delay are the companies you should be looking out for.
Listed below are some of the top insurance companies offering two wheeler insurance plans in India. They have been classified based on the Incurred Claim Ratio (For 2017-18):
National Two Wheeler Insurance Plans
|Incurred Claim Ratio||121.67%|
|Net Earned Premium||Rs.5,008.23 crore|
|Claims Incurred||Rs.6,093.76 crore|
- National Two Wheeler Insurance has an Incurred Claim Ratio of 121.67%. This means the company has settled more claims than the premiums earned.
- Offers legal liability to third-party property damage up to Rs.7.5 lakh.
- Provides the No Claim Bonus to help reduce the cost of the premium to be paid in case claims are not made.
Shriram Two Wheeler Insurance Plans
|Incurred Claims Ratio||94.56%|
|Net Earned Premium||Rs.1,815.32 crore|
|Claims Incurred||Rs.1,716.56 crore|
- Close to 95% of the claims have been settled by Shriram Two Wheeler Insurance.
- Claims for your two wheeler can be registered online. There is also an option to track the status of your application online.
- Cashless claim option is provided at any network garage.
SBI General Motor Two Wheeler Insurance Plans
|Incurred Claims Ratio||91.75%|
|Net Earned Premium||Rs.738.09 crore|
|Claims Incurred||Rs.677.21 crore|
- SBI General has an Incurred Claim Ratio of 91.75%. This is better than most of the insurers out there.
- SBI General offers discounts for people with ages ranging between 25 and 55 years.
- The pricing offered by SBI General is customisable and will be based on your profile.
- Discounts will be offered if your vehicle remains insured without any break.
United India Motor Two Wheeler Insurance Plans
|Incurred Claims Ratio||91.72%|
|Net Earned Premium||Rs.5,748.32 crore|
|Claims Incurred||Rs.5,272.11 crore|
- United India offers discounts of up to 25% if you are insuring a vintage car that has been certified by Vintage Cars and Classic Cars Club of India.
- No Claim Bonus ranging from 20% to 50% are offered. This will depend on the number of claim-free years you have accumulated.
- A discount of 50% is provided on the Own Damage premium if the vehicle has been modified for use by handicapped, mentally challenged, and blind persons.
Royal Sundaram Two Wheeler Insurance Plans
|Incurred Claims Ratio||84.99%|
|Net Earned Premium||Rs.1,619.78 crore|
|Claims Incurred||Rs.1,376.58 crore|
- Royal Sundaram has a Claim Settlement Ratio of 84.99%. The claims are generally processed by the company in under 10 working days.
- Policyholders need not pay any added premium even if there is an increase in the third-party premium during the policy period.
- Any accumulated No Claim Bonus can be transferred if you change your insurance from any other insurer to Royal Sundaram or vice versa.
Bharti AXA Two Wheeler Insurance Plans
|Incurred Claims Ratio||81.74%|
|Net Earned Premium||Rs.1,010.07 crore|
|Claims Incurred||Rs.825.60 crore|
- Bharti AXA offers a Zero Depreciation cover. This helps you in avoiding paying the cost of depreciation. This can save a lot of money when any repairs or replacements are made.
- There are more than 3,500 Bharti AXA cashless garages. The insurer will settle all the claims with the garage directly.
- Bharti AXA offers round-the-clock assistance for making claims. This will ensure you always receive claim assistance.
Magma HDI Two Wheeler Insurance Plans
|Incurred Claims Ratio||81.71%|
|Net Earned Premium||Rs.320.49 crore|
|Claims Incurred||Rs.261.86 crore|
- Offers No Claim Bonus if you do not make claims during the policy period. There is also an option to transfer this bonus if you switch insurers.
- Additional covers such as Personal Accident Cover are offered at a nominal price.
Although the Incurred Claim Ratio gives a good idea about the insurer and the number of claims they have settled, this is not the only criterion to keep in mind while purchasing an insurance policy for your two wheeler. Think about the extent of coverage you would need based on your driving skills and the city/region where you would be driving your two wheeler. Evaluate all the options available and choose the insurer accordingly.