What is two-wheeler insurance – It is best to inquire about important things and information before buying two wheeler insurance policy. This practice will help in the long run and avoid unwanted glitches in future. There are certain things you need to consider or keep in mind while buying motor insurance. Bikes or scooters are the most convenient and popular commuters famous in India as people use it for daily transportation. These have mostly opted because of the ease of it. Two-wheeler makes it easier to pass through the complicated traffic crowd. The only matter of concern is that it is highly exposed to risks such as injuries and fatalities. Only buying a new two wheeler is not enough, it is also important to take the right decision while buying two wheeler insurance policy. The process of buying insurance involves understanding terms and conditions accurately. Motor insurance is mandatory to have in India for every vehicle owner. Third-party liability cover is the one that you must purchase as per the Motor Vehicles Act, 1988. This ensures your safety against any uncertain mishappenings that results in financial loss.
Following are the important things to know before selecting two-wheeler insurance –
Types of coverages: The first and foremost thing is to know about the type of coverages available with the insurer. Prefer coverage that helps to cover your bike completely. There are different types of coverage you can avail i.e. third party liability, own damage and comprehensive. Third party liability is cover saves you against any damage or loss to the third party due to your vehicle. The third party does not cover own damage to your vehicle. To cover own damage one has to take own damage coverage. Well, the easiest and beneficial way is to have comprehensive coverage as it covers both own damage and third-party liability. Factors considered for premium: There are various factors that need to be considered while purchasing two wheeler insurance policy and used at the time of premium rating calculation. Such as make and model of the two wheeler, engine capacity, registration copy, city of the purchased vehicle, type of coverage, insured declared value, safety installation in the vehicle, driving record, usage of vehicle, age of the vehicle, short term or long term insurance, medium of insurance purchasing (online or offline)
Insured Declared Value: IDV depicts the current market value of a vehicle. The insurance company decided IDV as per the market value and depreciation value. Insured Declared Value of a vehicle is calculated by deducting the vehicle’s depreciated value from the actual showroom price.
(Actual showroom price – Depreciation value = IDV)
Every insurance company has its own IDV/ Depreciation percentage slab.
The schedule of depreciation for fixing IDV of the vehicle –
| Age of the vehicle | % of depreciation for fixing IDV |
| Not exceeding 6 months | 5% |
| Exceeding 6 months but not exceeding 1 year | 15% |
| Exceeding 1 year but not exceeding 2 years | 20% |
| Exceeding 2 year but not exceeding 3 years | 30% |
| Exceeding 3 year but not exceeding 4 years | 40% |
| Exceeding 4 year but not exceeding 5 years | 50% |
No Claim Bonus: No claim bonus is the reward offered to the insured in the form of a discount at the time of renewal for not making claim during the policy period. Like for one entire claim-free year, insured will get a discount of 20% and consequently discount rate increases maximum upto 50%
See the following NCB discount schedule on premium calculation –
| No. of claim-free year | NCB Discount |
| One claim free year | 20% |
| Consecutive two claim free years | 25% |
| Consecutive three claim free years | 35% |
| Consecutive four claim free years | 45% |
| Consecutive five claim free years | 50% |
Add-On covers: Talking about the extra coverage, the insurance company offers add-ons such as nil depreciation. If someone has nil depreciation coverage as an add-on, he/she will be benefited by not considering depreciated value in the sum insured value. Also, at the time of claim depreciated value will be nil. It is highly recommended to buy add-ons along with two-wheeler insurance.
Exclusions: There are certain exclusions that you must know about while buying two-wheeler insurance. For your benefit, you must know what is good and what not worth it for you. Exclusions such as mechanical and electrical breakdown of the vehicle, normal wear and tear, loss or damage due to terrorism and war, owner driving without a license, owner driving under the influence of alcohol or drugs, accidental loss or damage caused due to willful negligence, vehicle running outside the given geographical area and other conditions. Final Words, Final Words, Always be attentive while purchasing a two-wheeler insurance policy because your one negligence can impact your safety concern. Make yourself aware of your safety requirements.
