Two-Wheeler Insurance Simplified for You. This should help you know the positives in large numbers about renewing your motorcycle policy
Two-Wheeler Insurance insurance is one of the prime to-dos when you first buy your bike. It is a quintessential aspect that keeps you, your bike and others safe and protected. Is it some magic? No, definitely not, nor does it involve complex formulas to puzzle you.
A Two-Wheeler Insurance insurance renewal policy covers the expenses pertaining to you, your bike and third party in case of any mishap (depending on the policy issued). Our law states that all new vehicle must be insured, else it simply won’t be registered. Same law applies when buying used bikes, however, in this case, a penalty is issued if one fails to ensure his/her bike.
Below we answer some of the most frequently asked questions about Two-Wheeler Insurance:
What exactly is motorcycle insurance?
Motorcycle insurance is a policy that provides protection to any individual or property in case of any damage or injury caused by your vehicle to that individual or property. Along with that it also covers the expenses of repairing your vehicle in case of any accident and /or damage done due to calamities, explosions, strikes and much more.
The holder has to pay premiums regularly. In return, the company provides for the expenses in case of any mishap or accident where the motorcycle has to be brought back to its working condition. Also, these policies provide cover for any damage caused to any third party, thus saving the holder a huge sum of money. Some policies also provide formedical care the holder may need in such of any accidents. Normally the cost of premiums is a lot lesser than the costs incurred in an accident.
What all policies exist? What are the benefits of each of them?
According to your need for financial protection, you can choose any one of the following insurance policies.
Third-Party Liability Coverage
This policy provides compensation for any injuries and property damage of a third party resulting from any accident involving your bike. This cover is mandatory according to the Indian law. A downside to this policy is that it provides zero security to you and your vehicle making it a less than ideal choice. The policy provides compensation of up to INR 1 lac for damage to third-party property. In case of any major injuries and/or death the compensation is decided by a court tribunal.
– Comprehensive Insurance
A comprehensive insurance is the better option available to you. It is slightly more expensive but does come in handy during emergencies. This policy secures you, your vehicle and the third-party as well. Another benefit of this policy is protection against thefts, natural disasters and also an accident cover for the owner-driver. The premium for this policy is made up of two components: a third-party premium and an own-damage premium. The OD premium varies according to bike’s make, model, manufacturing year, engine capacity and geographical location.
The base premium of both the policies depends on the cubic capacity of your motorcycle and as per IRDAI (Insurance Regulatory & Development Authority of India) the rates with effect from April 2017 are as follows:
Along with these policies, there are some add-ons which the policymaker provides to let you customize your cover based on your requirements. These include:
Accident Cover for Occupants
This type of cover is helpful for the pillion as it recompenses for full or partial disability of the pillion rider.
Zero Depreciation Cover
This policy benefits you with not having to pay prices of repaired/replaced fibre, plastic and glass parts. In other words, you don’t have to pay the depreciation on these parts.
This add-on feature is provided by select insurance companies only. It provides assistance in case of any sudden breakdown. In such emergency cases, all you have to do is contact your insurer. The insurer and his team will then rush to the breakdown site to assist you. They’ll help you tow your vehicle and negotiate your repair costs.
This provides coverage to any electrical or non-electrical accessories added to your two-wheeler. Here the insurance company covers the cost of replacing/repairing them. This add-on again is provided by select companies only. One important aspect of an insurance policy is its terms and conditions, mainly what it includes and excludes. Let’s discuss them one by one.
Let us close with a few words on policy renewal. Most of the times, owners do not renew the policy and honestly, it doesn’t make sense. You can only claim your money if your policy is a working one. Nowadays long-term insurance cover is available allowing you to insure your vehicle for an extended period of time. This not just save you times but also reduces chances of you missing the date of renewal. It’s best to renew your policy to stay safe and secured whilst on the road.