TWO WHEELER INSURANCE A T Z Guide
When it comes to buying a two-wheeler, many aspects are weighed and compared before dealing with one. Some compare the mileage while others are more concerned about the
presence. Some are important for affordability and practicality while others spend a fortune on premium bikes which reflect the stature. Whatever the aspect, buying a two-wheeler vehicle also includes a two-wheeler insurance policy. When you try and save life insurance,
you can not do it with a two-wheeler insurance policy because it is mandatory according to the Motor Vehicles Act, 1988. A two-wheeler insurance policy is like motor insurance.
The law makes it necessary for the ‘third party’ insurance cover. A third party liability cover is to pay the loss to the third person involved in your automobile accident. This means that it does not include the loss of your two-wheeler or personal injury.
You can know your two-wheeler insider but do you have the same information about your vehicle’s insurance policy? If not, then read –
There are several aspects in a two-wheeler insurance policy that you should know of. Let’s see what they are –
Types of Cover – The law is mandatory that your two-wheeler should have ‘third party liability cover’
which will compensate any person or property damaged through your two-wheeled vehicle. Although this policy is necessary, it does not cover your car or self against any loss. A comprehensive plan is available to cover your losses,
in which any damage done to the bike with mandatory third-party cover will be included.
Premium Factor – Premium for your bike depends on the following factors:
Bike making and model
City of registration
Type cover (third party or extensive)
It can be understood that the cost of the premium bike is high and the premium for the insured person is also high, the capacity of the engine will be high, the bonus will be different in different cities, and the limited coverage will be compared to the gift and the third party for. There is a comprehensive comparison.
Insurance declared value – Make a special note of the term ‘IDV’ mentioned in the policy paper. The reported value of your vehicle or IDV is calculated by adjusting the market value of your bike against depreciation.
There is a specific table of discount for easy calculation. As the bike age, depreciation increases and premiums fall. The effective cost of the IDV vehicle is that the car is completely damaged or lost.
Age of vehicle percentage depreciation for IDV fixing
No more than six months 5%
Not more than six months but one year 15
More than one year but not more than two years
Three years 30
More than three years but four years is not higher than 40
Over four years but not more than five years
Additional cover – A comprehensive policy covers your vehicle’s loss, some extra sheets are available such as insurance against collision cover, fire cover, Pillai rider etc.
No Claim Bonus –
A two-wheeler plan is renewable every year for a one-year contract. If there is no claim, then the company does not give anything. However, for each claim-free year, the policyholder claims that each claimant will be entitled to a bonus for the coming year.
The discount rate is approximate, which starts at 20% for the first year, and in later years it increases to 25%, 35%, 45% and 50% (maximum limit). This bonus reduces renewable premiums.