Coverage Of Two Wheeler Insurance Claim And Renewal
Two-wheeler insurance is a type of motor insurance that provides protection to two-wheeler vehicles such as bikes, scooters, and mopeds. It covers damages to the insured vehicle as well as third-party liabilities such as injuries or property damage caused to other parties involved in the accident. The insurance policy may also include additional coverage options such as personal accident cover for the policyholder and passengers, roadside assistance, and protection against natural disasters such as floods and earthquakes.
Types of Two-Wheeler Insurance Policies
There are two types of two-wheeler insurance policies: third-party insurance and comprehensive insurance.
Third-Party Insurance – As per the Indian Motor Vehicles Act, 1988, it is mandatory for all two-wheeler owners to have at least third-party insurance. Third-party insurance covers the policyholder against any legal liabilities arising due to injuries or damages caused to a third party involved in the accident. However, this policy does not cover damages to the insured vehicle or the policyholder.
Comprehensive Insurance – A comprehensive insurance policy provides coverage for both third-party liabilities as well as damages or losses to the insured vehicle. This policy may also include additional coverage options such as personal accident cover, roadside assistance, and protection against natural disasters.
Factors Affecting Two-Wheeler Insurance Premium
The premium for two-wheeler insurance is calculated based on various factors such as:
Make and Model of the Vehicle – The premium for two-wheeler insurance varies based on the make and model of the vehicle. A high-end bike or scooter may have a higher premium as compared to a standard model.
Age of the Vehicle – The age of the vehicle is another important factor that affects the premium. An older vehicle may have a higher premium as it may be more prone to damages and repairs.
Cubic Capacity of the Vehicle – The cubic capacity or engine capacity of the vehicle is also taken into consideration while calculating the premium. Higher cubic capacity vehicles may have a higher premium.
Policy Coverage – The extent of coverage provided by the policy is also a factor that affects the premium. A comprehensive insurance policy with additional coverage options may have a higher premium as compared to a basic third-party insurance policy.
Policyholder’s Age and Gender – The age and gender of the policyholder may also be a factor that affects the premium. Younger policyholders and male policyholders may have a higher premium as they are considered to be more prone to accidents.
Coverage Of Two Wheeler Insurance Claim And Renewal
Claim Process for Two-Wheeler Insurance
In case of an accident or damage to the insured vehicle, the policyholder must follow the below steps to file a claim:
Inform the Insurer – The policyholder must inform the insurance company immediately after the accident or damage to the insured vehicle. The insurer may require certain details such as the location and time of the accident, the extent of damage to the vehicle, and any injuries sustained by the policyholder or third parties involved in the accident.
Register the Claim – The policyholder must register the claim with the insurance company by filling out the claim form and submitting all necessary documents such as the FIR (in case of an accident), driving license, registration certificate, and policy document.
Surveyor Inspection – Once the claim has been registered, the insurer may appoint a surveyor to assess the extent of damage to the vehicle and estimate the cost of repairs. The surveyor may need to physically inspect the vehicle in case of major damages, while in other cases, the insurer may request the policyholder to submit photographs and other relevant documents to support the claim.
Claim Approval or Rejection – The insurance company will process the claim and either approve or reject it based on the terms and conditions of the policy. If the claim is approved, the insurer will either pay the policyholder for the damages or repairs to the insured vehicle, or directly pay the third party involved in the accident for their injuries or property damage. If the claim is rejected, the insurer will provide a reason for the rejection.
Cashless Claim or Reimbursement Claim – Depending on the policy and the insurer, the policyholder may have the option of choosing between a cashless claim or a reimbursement claim. In a cashless claim, the insurer directly settles the claim with the garage or workshop where the vehicle is being repaired. In a reimbursement claim, the policyholder pays for the repairs themselves and then submits the bills and receipts to the insurer for reimbursement.
Settlement of Claim – Once the claim is approved, the insurer will either settle the claim by making the payment to the policyholder or the third party involved in the accident, or by directly paying the garage or workshop where the vehicle is being repaired.
Renewal of Two-Wheeler Insurance
It is important to renew your two-wheeler insurance policy before the expiry date to avoid any lapse in coverage. The renewal process is simple and can be done either online or offline. Here are the steps involved in renewing your two-wheeler insurance policy:
Policy Expiry Date – Check the expiry date of your two-wheeler insurance policy. It is advisable to start the renewal process at least a few weeks before the expiry date to avoid any last-minute hassles.
Insurance Provider – Choose the same insurance provider or switch to a different provider based on your requirements and budget.
Renewal Premium – Calculate the renewal premium based on the type of policy and coverage options chosen.
Renewal Process – Renew your policy online by visiting the insurer’s website or through their mobile app. Alternatively, you can visit the insurer’s office or contact their customer service center to renew the policy offline.
Documents Required – The documents required for renewal may vary depending on the insurer. Typically, you will need to submit your existing policy document, registration certificate of the vehicle, and your driving license.
Payment – Pay the renewal premium either online through net banking or credit/debit card, or offline through cash or cheque.
Coverage Of Two Wheeler Insurance Claim And Renewal
Benefits of Two-Wheeler Insurance
Having a two-wheeler insurance policy provides the following benefits:
Legal Compliance – It is mandatory by law to have at least third-party insurance for your two-wheeler. Having a valid insurance policy ensures that you comply with the legal requirements and avoid any legal hassles.
Financial Protection – A comprehensive insurance policy provides financial protection against damages or losses to the insured vehicle as well as third-party liabilities. This helps the policyholder to avoid any financial burden in case of an accident or damage to the vehicle.
Personal Accident Cover – Many two-wheeler insurance policies provide personal accident cover for the policyholder and passengers. This provides financial compensation in case of injuries or death due to an accident.
Additional Coverage Options – Many insurance providers offer additional coverage options such as roadside assistance, protection against natural disasters, and cover for accessories and spare parts.
No Claim Bonus – A no-claim bonus is a discount offered by the insurer on the renewal premium if no claims are made during the policy period. This encourages safe driving and helps the policyholder to save on the premium amount.
Conclusion
Two-wheeler insurance provides financial protection to two-wheeler owners against damages or losses to their vehicles as well as third-party liabilities. It is important to choose the right type of policy and coverage options based on your requirements and budget. The claim process and renewal process are simple and can be done either online or offline. Having a valid two-wheeler insurance policy ensures legal compliance and financial protection, and provides peace of mind
FAQs
Q1. What mistakes should you avoid when selecting an insurance plan for a two-wheeler?
Here are a few mistakes you should avoid when purchasing two-wheeler insurance
By avoiding the conditions and terms
Consider the lowest cost and avoid insurance coverage
The incorrect selection of add-ons
The offline mode can be selected for the application
The policy is not renewed on time.
No need to ask for a bonus that is not claimed
Choosing smaller deductive
Q2. What is the best way to buy a Nil Depreciation Cover that can be beneficial to me?
If you don’t opt for the nil depreciation insurance then you’ll be charged a percentage as depreciation upon getting your claims. This is an additional cover and experts suggestion to think about buying this cover to increase the initial value of the two-wheeler you own at any time in the future.
Q3. How is the price for a two-wheeler is determined?
There are a variety of factors that are important in determining the two-wheeler policy price you have to pay.
IDV of the two-wheeler
Registration zone
The capacity of the car’s cubic,
Vehicle’s age and
Add-on covers, if there are any
Q4. What is a voluntary deduction?
This is the sum that is agreed upon by the policyholder, while the business pays the balance.
Q5. What are the benefits of Roadside assistance?
Certain insurance companies offer this feature in their in-built policies and some provide it as an optional add-on that the policyholder may purchase. The following coverage is offered in this”:
Assistance with towing in the event of a breakdown
Flat tire
Minor repairs
Rental vehicle arrangements
Q6. How can one cut down on the cost of insurance?
The policyholder could save lots of dollars by renewing the two-wheeler coverage at the right time.
Only purchase those covers that you require
Beware of making claims that are not significant during the year to earn no-claim bonuses
Examining the premiums of different plans offered by various insurance companies
Deciding to take a voluntary deduction
A long-term insurance policy is a good way to reduce the risk of premium increases
Coverage Of Two Wheeler Insurance Claim And Renewal
Latest News
New Motor Vehicles Law: Online Sale of Two-Wheeler Insurance Policy Doubles
With the new motor vehicle law taking effect September 1st, the sales online of insurance policies for two wheels is more than doubled according to data provided by an insurance website aggregator. It was also discovered that the majority of policies sold over the next three days beginning on Sept. 1 were specifically for people who had policies that were expired.
According to an estimate of 19 million registered vehicles, 70% of two-wheeler owners don’t renew their insurance after a couple of years. In the new law, fines for driving with no insurance have been increased from 1,000 to Rs. 1,000 to Rs. 2000 for first-time offenders, and up to Rs. 4,500 for second-time offenders. If two-wheeler riders are found riding without helmets or helmets, they are required to pay several Rs. 1,000, and their license will be suspended for three months.
Two-wheeler owners may opt for different insurers for TP Covers and OD Covers
Owners of two-wheelers can pick from 3 different kinds of insurance policies for two wheels beginning on September 1, 2019. You can also purchase these policies through separate insurance companies. At the time, only two options were offered and required to be purchased from the same insurance company.
In the past, Personal Damage (OD) insurance was required to be taken in conjunction with that of the Third Party (TP) component from the same insurance company. Insurance companies now provide three types of insurance policies namely a Standalone OD Policy, a Standalone TP Policy, and a Comprehensive Policy, comprising both the TP and OD protection. Policyholders are also able to select different insurance providers to cover different policies.
The new policy is an outcome of a circular published by IRDA on 21 June 2019 which states that separate policies can be obtained for both new and old automobiles. The Motor Vehicles Act, of 1988 the law requires that you obtain a Third Party insurance for every vehicle. The latest ruling follows a Supreme Court order in 2018 that required that Third Party insurance for new vehicles and two-wheelers should be covered for three years and 5 years respectively.