Last updated on May 30th, 2021 at 05:35 pm
Apart from being a legal requirement, buying an insurance policy for your two wheeler comes with many benefits. As per the Motor Vehicles Act, 1988, it is mandatory for all vehicles to be insured in India. If a vehicle is found without an insurance policy, heavy fines can be levied. The governing body that regulates all motor insurance products in India is the Insurance Regulatory and Development Authority of India (IRDAI). Having bike insurance coverage is just as important as maintaining your two wheeler.
In India, there are over 10 million two wheelers sold every year. Even though it is considered as the most convenient mode of transport, there are many risks associated with it. Therefore, having your two wheeler insured is vital.
After a recent order from the Supreme Court, the IRDAI has made it mandatory for two wheeler vehicles to have a 5-year third-party insurance policy right from the time of purchase.
There are various best two wheeler insurance plans that are available online. Therefore, before buying an insurance policy for your two wheeler it is better if you compare various insurance policies online to get the best possible premium.
Types of Two Wheeler Insurance
Two wheeler insurance plans are classified into two types:
Third-Party Liability Insurance:
In India it is mandatory to have a third-party liability insurance policy. However, no personal cover or cover for theft is provided by this type of insurance. The insurance policy is mainly designed to take care of legal liabilities in case there is property damage or injury/death of the third party during an accident.
Comprehensive Two Wheeler Insurance:
To overcome the limitations of a third-party liability cover, the customer can buy a comprehensive two wheeler insurance policy. Apart from the insurance policy safeguarding the policyholder’s finances, it covers damage caused to a vehicle due to accident, strike or riot, lightning or self-ignition, theft or burglary, fire explosion, or natural calamities. However, having a comprehensive insurance policy is not mandatory like a third-insurance policy. Even at the time of renewal it is not mandatory to buy a comprehensive two wheeler insurance policy.
How to Calculate Two Wheeler Insurance Premium?
There are various third-party websites where the premium for your two wheeler can be calculated. The premium that you pay for an insurance policy is to get financial protection against damages or losses caused by/to your vehicle. In case a claim is made due to third party damages, an accident, or theft, up to the Insured Declared Value (IDV) is paid by the insurance company.
On third-party websites, registration number, Cubic Capacity (CC), and make and model of your vehicle must be entered in order to get an insurance premium quote. Different quotes are given for comprehensive insurance policies and third-party liability insurance policies. While the comprehensive insurance premium differs from every insurance provider, the third-party liability insurance premium is decided by the IRDA.
Many insurance providers also offer add-ons to the insurance policy, which can be availed by paying an extra premium.
Ways to Save Money When Buying a Two Wheeler Insurance Policy
Here are some tips to save money when buying an insurance policy:
- You can compare premiums of various two wheeler insurance plans. Some insurance providers offer insurance covers for a lower premium than others.
- When buying an insurance policy, you can opt for voluntary deductibles. Voluntary deductible is the amount that you pay at the time of a claim. However, it is vital that the amount of voluntary deductible you choose is not very high.
- Installing Automobile Research Association of India (ARAI) approved anti-theft devices will reduce the premium of the insurance policy. It will also provide more security to your vehicle.
- Buying a multi-year or long-term two wheeler insurance policy will reduce the overall premium.
- The premium of an insurance policy also reduces if you avail discounts through accumulated No Claim Bonus (NCB).
Things to Keep in Mind When Buying Two Wheeler Insurance Plans Online
One of the most secure ways to buy a two wheeler insurance policy is online. You can buy an insurance policy as per your requirements in a matter of minutes. However, it is important to do some research and read all the features when buying an insurance policy online. Reading reviews about the insurance company is also vital.
Customers must be careful of fraudulent insurance providers and always buy an insurance policy from a reputed provider. On completing the payment, it is vital to request for a receipt and keep a record of it.
Benefits of Buying Two Wheeler Insurance Plans Online
There are various benefits when you buy a two wheeler insurance policy online:
Various Insurance Policies can be Compared:
Customers can buy an insurance policy as per his/her needs when buying online. On providing basic details of your two wheeler on third-party websites, insurance premium from various providers are brought up. Apart from knowing the premium of each insurance provider, you will also be able to find the pros and cons of the insurance policy.
Policy Renewal can be done Easily:
Renewal of an insurance policy and payment for the coverage can also be done easily online.
Paperwork Required is Minimal:
The documentation and paperwork required when buying or renewing an insurance policy online is less. Making payments are also secure. Apart from directly dealing with the insurance provider, it is also a very convenient way of buying an insurance policy.
Amendments can be Made to an Insurance Policy:
Websites of the insurance provider have forms where a customer can make changes to the insurance policy. Once the form is submitted, the changes are made instantly in most cases.
Cheaper Policies can be Chosen:
Two wheeler insurance policies are sometimes available online at a lower premium. Also, there are no extra charges that the customer will have to pay to a middleman or a broker. Additionally, the processing fees are lesser when buying an insurance policy online.
It is vital to have two wheeler insurance cover due to the number of accidents that occur nowadays. It is also important that owners ride their vehicles cautiously and be prepared in case any incident occurs. Doing proper research will help in buying the best insurance policy as per your requirements and savings on the premium that is required to be paid.