Everything You Need To Know About Two-Wheeler Insurance Policy



Having a two-wheeler insurance policy for your bike or scooter is mandatory as per the Motor Vehicles Act of 1988. Besides, it provides a financial cushion against theft or damage to your precious vehicle in the event of an unforeseen accident. And with everything getting digitised, you can now buy a two-wheeler insurance online, that too at cheaper rates.

However, before buying, it’s imperative for you to know certain aspects of a two-wheeler insurance policy, so that you can make an informed choice. So, let’s get started with it.

Types of two-wheeler insurance

Insurers usually offer two different types of two-wheeler insurance policies in India. They differ from each other in terms of premium amount and coverage.

Third-party two-wheeler insurance policy – This type of policy covers the policyholder against any third-party liabilities arising due to an accident involving his/her bike or scooter. In simpler terms, if any damage to life or property of a third-party is caused due to an accident involving your two-wheeler, your insurer will pay the compensation amount to the victim on your behalf.

As per the law, having a third-party insurance policy is mandatory for all vehicles plying on Indian roads. However, this type of policy does not cover the damages caused to the policyholder’s vehicle which means that in case of an accident, you have to pay for the repairs of your bike from your own pocket.

Comprehensive two-wheeler insurance policy – As the name suggests, this type of policy provides a complete protection to the policyholder’s vehicle. This means that apart from covering the third-party liabilities, a comprehensive bike insurance plan will also cover the damages sustained by your vehicle due to an unfortunate accident.

You can either choose to receive the reimbursement for the repairment work of your two-wheeler or you can get it repaired at a network garage without paying anything from your pocket. In case your bike gets stolen or damaged beyond repairs, you will be compensated with an amount equal to the Insured Declared Value (IDV) of your vehicle.

Calculation of insurance premium

The premium for a two wheeler insurance plan is calculated on the basis of some basic parameters such as the type of policy you opt for, cubic capacity of your vehicle, IDV, geographical zone in which it’s driven, and the add-on covers.

While the premium amount for a standalone third-party bike insurance is calculated on the basis of the cubic capacity of the vehicle and is fixed by the Insurance Regulatory and Development Authority of India (IRDAI), the premium amount for a comprehensive plan is deduced by the insurers after taking into account the above-mentioned factors and driving patterns on the policyholder.

Add-on covers that you should opt for

You can opt for various add-on covers (in lieu of additional premium) to supplement your two-wheeler insurance policy and hence, enjoy better coverage. Some popular add-ons include:

Zero-depreciation cover: A zero-depreciation cover nullifies the effect of depreciation on your bike. If this cover is selected, the insurer will pay you the full cost of replaced part(s) or the invoice value of your two-wheeler (in case of total loss), irrespective of the depreciation suffered by it.

PA cover for pillion rider: This cover provides a personal accident cover for the pillion rider. This means that in case of partial/permanent disability or death of your co-rider due an accident, the insurer is bound to pay a predetermined compensation amount to him/her.

Accessories cover: You can opt for this cover if you’ve installed expensive accessories in your bike. With accessories cover, you can extend the coverage of your policy to all the electrical as well as non-electrical accessories installed in your two-wheeler.

How to buy the policy?

Motor insurance industry has evolved into a huge one. Today, there are a large number of insurers offering two-wheeler insurance online as well as offline. What you need to do is decide the type of policy that you want for your bike, compare the quotes from various insurers, watch out for the inclusions and exclusions, and zero-in on the best-suited plan as per your requirements.

You can further enhance the coverage of your policy by opting for add-on covers from either the same or different insurer. For instance, Pocket Insurance & Subscriptions offered by Bajaj Finserv lets you choose from a range of affordable and short-term insurance covers to supplement your basic policy.

You can pick plans like Helmet Insurance and Child Personal Accident Cover to avail additional coverage over and above your two-wheeler insurance policy. These add-on plans can be purchased by paying an affordable one-time premium starting Rs. 199 only.