Two Wheeler Insurance Policy

Posted in: Insurance | on: August 10, 2020

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Two-wheeler insurance is an insurance plan required for safeguarding two-wheeler, motorbikes, scooty or scooters against any damages which are caused by an accident, theft, disaster that may lead to financial loss. This insurance plan provides compensation for the third party liabilities resulting from injuries to one or more people. Third party insurance is compulsory under the Motor Vehicles Act 1988.

What are all covered under Two-Wheeler Insurance Policy?

Under the two-wheeler insurance, the insurance coverage is provided for the damages listed as follows:

Accidental Damage

If an individual's two-wheeler is unexpectedly met with an accident, one can claim for the insurance to cope up the damages made. Situations like accidents caused by fire, natural calamities, disasters or riots are also covered under this plan.

Theft

Suppose, if the bike insured got stolen, the bike owner need not to worry, since the insurers will pay them a sum equal to the proclaimed value of the insured bike.

Personal Accident

Unfortunately, if an individual meets with an accident which is caused by two-wheeler, then all the medical treatments, bill payments, medical expenses etc. will be covered under this insurance plan.

Third Party Liability

If one's two-wheeler causes accidents or damages or any losses to the properties of a third person, then the insurer will provide coverage to meet all those liabilities, which are legal.

What are the types of Two-wheeler Insurance Policy?

There are two types of two-wheeler insurance policies namely, Third-party liability insurance policy and the comprehensive two-wheeler insurance policy.

Third-Party Liability Insurance Policy

It includes basic coverage that covers the damages or losses or any injury caused to the third-party. It is a mandatory cover which protects the vehicle against third party liability.

Comprehensive Insurance Policy:

A comprehensive two-wheeler insurance policy offers coverage to the insured or damage caused to a third- party. These damages include natural disasters, fire accidents, theft, riots or damage caused by travel. Under this policy, damages caused because of the impact of alcohol or drugs are excluded.

What are the benefits of Two-Wheeler Insurance Policies?

Financial aid

The main advantages of the two-wheeler insurance policy is that it covers financial loss. Insurers will offer money for repair costs/ paint work/ dent repair of the bike after an accident or may provide financial aid for the complete treatment. It also provides complete as well as partial coverage for loss/ theft of the bike.

Accidental coverage

Under this plan, one can get the accidental coverage for themselves as well as for the third party. It not only covers the repair cost but also provides financial aid to the injuries made to them.

Legal security

two-wheeler insurance is mandatory in India as it provides legal protection in the case of sudden accident. In the case of accidents, one can get the pre-decided amount as notified in the valid bike insurance policy. For getting these benefits, the policyholder has to pay a predetermined premium for some duration of time to their insurers. Personal Accident Coverage can have the benefit of up to Rs.1 lakh for the damages caused to the insured two-wheeler. It includes cost-effective pre-negotiated premium rates, from the minimum amount of Rs. 600/-. There are so many offers provided by different insurers and the offers may vary according to the company.

What are the things to be considered before buying Two-Wheeler Insurance Plan?

Selecting the suitable insurance plan:

  • After buying the two-wheeler, the first thing one has to do is to purchase an insurance plan.
  • According to the law, a two-wheeler must have a third party insurance plan.
  • One can have any one of the two-wheeler insurance plans or both. Individuals can have both the individual or comprehensive insurance plan as well as third party liability plan, if they own expensive super bikes.

Choosing the best insurance company:

  • One can choose the company which offers speedy claim settlements and better customer service.
  • Each company provides different insurance policies. It is recommended to choose the best company which offers better plans.

Duration:

  • Time period of an insurance policy is an important thing to consider before getting a bike insurance plan.
  • Generally, one can claim insurance for one year, and can renew it annually. But it is smarter to have a long-term coverage that lasts up to 5 years as it will avoid late renewal.
  • Also, there are numerous companies which offer premium discounts for long-term insurance.

Look out the exemptions:

  • People generally look up the features but ignore the exemptions.
  • One has to select the best plan that fulfills best coverage along with high claim settlement plans.
  • One must choose the best plan that includes all the requirements needed.

Premium Rates:

  • It is important to get the knowledge of premium calculation to avoid extra costs or hidden cost.
  • One must choose the plan having minimal premium with maximum benefits.
  • Before claiming for the insurance, one must consider the two-wheeler price, engine capacity, geographical area, age, voluntary deductible, bike model, duration, bike manufacture date etc.

How to claim Two-Wheeler Insurance?

two-wheeler insurance can be claimed in online with the two-wheeler insurer in two ways:

Cashless Claim or a Reimbursement Claim with the Insurer:

Cashless Claim:

In cashless claims, the claim settlement will be directly paid to the garage where the repair works were done. This facility is provided for the insured vehicle repaired at any of the garage networks preferred by the insurer.

One must pay the non-coverage expenses along with the deductibles.

Reimbursement Claim:

Reimbursement claims can be registered if one repair their vehicles at any garage other than the list of approved garages by the insurer. In this case, one has to pay the repair expenses and can later file or register for reimbursement with the insurer.

After paying all the bills, one has to submit all the bills, receipts, proofs and other expenses to the insurer. The insurer will check and the claim will be approved. The amount spent will be repaid once the claim is approved.

Third Party Insurance Claim:

One has to follow the below steps to claim third party insurance:

  • Take photos and evidences of damaged parts. Take all the information regarding the damaging vehicle.
  • Collect the witnesses and observers.
  • Notify the information to the insurance company.
  • Report a First Information Report of the accident.
  • One has to report to the Motor Accident Claims Tribunal Court and present all the documents needed for the court.
  • After submission, the insurer will verify all the documents and the insured will get payment from the insurance company.

What are the documents required to claim Two-Wheeler Insurance?

One has to provide all the certificates given below to claim this insurance policy. The following are the list of documents that are to be submitted for claiming the two-wheeler insurance policy:

  • Duly signed claim form.
  • A copy of Registration Certificate (RC) of the two-wheeler.
  • A copy of a driving license.
  • A copy of two-wheeler insurance policy.
  • Police FIR (For accidents, theft and third-party liabilities)
  • Original copies of the repair bill and payment receipt.
  • Proof of release.

How to claim Two-Wheeler Insurance when the bike is stolen?

  • If the bike is stolen or theft, one should take immediate steps to claim the insurance policy. For that they have to contact their insurance company through the toll-free number, and notify that their bike is stolen.
  • After informing about the bike theft to the company, one has to lodge the claim with the duly signed claim form.
  • One need to submit the original bike keys and the copy of their driving license, RC book, FIR copy and policy document. The FIR copy with the “No Trace Report” of the insured bike should also be submitted.

How to check the status of Two-Wheeler Insurance in Online?

To know the current status of the insurance policy, one has to follow the below steps:

  • Visit the IIB web portal https://iib.gov.in/
  • Enter all the information like name, ID, mobile number, registration number etc. in the respective fields.
  • One can also use a search field by entering details like vehicle engine number or chassis number.
  • Now enter the security code and click the submit button.
  • The system will display the status of your two-wheeler insurance policy.

How to renew the Two-Wheeler Insurance Policy?

By contacting the Insurance Company:

One can visit the insurance company or the office of the insurer directly and pay a fixed amount of premium for renewal.

Online Payment:

One can also pay the policy premium amount in online through Net banking, Debit or Credit card, or through apps like google pay, paytm etc. from their home itself. Before buying insurance coverage, one must check on the features and it is important to compare two-wheeler plans with the help of vehicle insurance premium calculator. Then select the best option which suits one's requirements. There are so many products available and it is important to buy the best one which offers high benefits. It is also recommended to buy a long-term policy with voluntary deductibles. Also check whether No Claim Bonus is allowed and get the Anti-theft device. Ensure whether add-on covers, loyalty benefits etc. are also included.


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