Motorcycle insurance can be taken for all the insured two wheeler vehicles which include bikes, scooters, mopeds, scooty etc. Motorcycle insurance in India is mandatory and you can be fined up to Rs.5000 or up to 3 months of imprisonment or both if found driving without valid motor vehicle insurance.
Motor vehicle insurance in India is generally valid for a period of 12 months from the date of inception or the policy start date and claims arising during this period would be covered by the insurance companies. Motorcycle insurance in India is rated on the basis of the cubic capacity of the vehicle and the higher the cubic capacity, the higher would be the premium.
As per a report, the two-wheeler sales in the year 2019 were all-time industry high reaching 21 million units. Two-wheeler or motorcycle is the best way of transportation in India due to many factors such as heavy population, congested roads, low-cost transport, and suitable environmental conditions. While the developed countries heavily depend on the 4 wheeler due to the affordability and climatic conditions, Indians are biased towards two-wheelers and motorcycles.
What are the types of Motorcycle insurance?
Motorcycle insurance comes in 2 types: Third-party only motorcycle insurance or Act only or Liability only motorcycle insurance & Comprehensive motor insurance.
- Third party motorcycle insurance: Third-party motorcycle insurance covers the loss of life or bodily injury or third party property damage in case of an accident involving the insured motorcycle. The third party death claims are awarded by the honorable courts and the insurance companies are complied with, while the property damage claims are settled directly by the insurance companies like universal sompo india assurance up to the maximum limit mentioned in the policy copy.
Third-party motorcycle insurance is mandatory by law for every motorcycle plying in public places without which the owner/driver of the motorcycle would be fined or imprisoned. The premium for third party motorcycle insurance would be decided by the Insurance regulatory and development authority of India (IRDAI) depending on many factors such as the previous year's GWP, the previous year's loss ratio, etc. IRDA may change the third party motorcycle insurance rates each year and the same would be followed by all the insurance companies.
- First party motorcycle insurance: First party motorcycle insurance covers the loss or damage to the motorcycle insured due to an insured peril such as an accident or natural disaster. The insurance company would indemnify the insured customer up to the Insured declared value which is the maximum liability of the insurance company in case of an accident. First party motorcycle insurance is also called as Own damage insurance which covers the motorcycle in case of any loss or damage.
As per the Motor vehicles act, 1938 own damage insurance or first party motorcycle insurance is not mandatory while third party motorcycle insurance is mandatory. The premium for own damage motorcycle insurance is decided by the insurance companies after taking into consideration many factors such as previous year loss ratio, claim costs, and any other expenses.
- Comprehensive motorcycle insurance:
Comprehensive motorcycle insurance includes both third-party insurance and first party insurance. It is also known as Full insurance in the market and the premium is dependent on the cubic capacity of the motorcycle and the make model of the motorcycle.
The comprehensive 2 wheeler insurance online in India can be purchased online from PolicyBachat in 3 basic steps by entering all the basic details such as Make Model, Variant of the 2 wheeler, Date of registration, RTO, etc., and paying the premium. The comprehensive bike insurance is valid for a period of 12 months from the date of risk inception.
What is covered Under Motorcycle Insurance Policy?
Motorcycle insurance has the same coverage as mentioned in the Motor insurance policy wordings. Motorcycle insurance covers both the own damage of the vehicle and the third party loss of life or property damage depending on the type of cover chosen by the customer. Let us understand what is covered under motorcycle insurance in India:
- Fire, Explosion, Self-ignition, or lightning.
- Burglary, Housebreaking, or Theft.
- Act of God perils like Earthquake, Flood, and Cyclone, etc which can cause loss to your motorcycle.
- Terrorism, Riot, and Strike.
- Any other accidental means due to which the motorcycle is damaged.
- Accidental Death or natural calamities or bodily injury to any third party liability arising out of an accident of the insured motorcycle.
- Accidental third party property damage due to the insured motorcycle.
- Personal accidents cover Rs.15 Lacs to the bike owner/driver of the motorcycle which covers death and disability due to an accident while using the motorcycle.
Your motorcycle insurance covers the loss or damages to your motorcycle arising out of unintentional and accidental means. The most common type of loss that occurs is due to accidents arising out of a collision with any other vehicle on the roads. There could be chances of your vehicle getting stolen and damaged due to riot or god made perils.
The maximum liability in case of repairs is the Insured declared value or the actual amount incurred for repair while the maximum liability in case of theft is the insured declared value. The basic concept of motorcycle insurance is that the insured customer would be returned to the situation right before the occurrence of the loss and the customer should not gain from the insurance.
Is Motorcycle Insurance Important?
As per the Motor vehicles act, 1938 it is mandatory for any motorcycle to have valid third party insurance to ply on public roads without which they may be fined up to Rs.5000 or up to 3 months imprisonment or both. The main reason behind the compulsory third-party insurance rule is that in case of third party death cases the families of victims should be able to get some compensation from the other party by holding them responsible for the death.
There are many instances where the motorcycle owner was not in a situation to compensate the family of the deceased. To avoid such scenarios the Government of India has mandated third party insurance for every motorcycle driven in public places.
The importance of motorcycle insurance is known only at the time of third-party accidents. If there is valid third-party insurance then the insurance companies will settle the claim, in case of the absence of third party insurance the compensation amount is to be paid by the motorcycle owner. Courts can also order the motorcycle owner to dispose of his/her properties and pay the compensation to the family of the deceased. To prevent such situations it is advisable to have motorcycle insurance valid at all times.
Motorcycle insurance also covers the loss or damage to the motorcycle due to an accident, the cost incurred to repair the motorcycle would be borne by the insurance company up to the maximum limit i.e. insured declared value.
Your motorcycle insurance also covers the loss or damage to the motorcycle due to god-made perils such as cyclones and manmade perils such as Riots, Strike, etc. In addition to this, the claim is paid if your motorcycle is stolen by miscreants considering it as the total loss claim if the recovery of the 2 wheeler is not made by the police.
How to Calculate Motorcycle Insurance Premium Online?
Motorcycle insurance premium can be calculated online using the portal best bike Insurance in 2 easy steps by entering the basic details of your motorcycle such as Make, Model, Variant, Date of registration, RTO, etc and clicking on the submit button to get the premium from the top general health insurance companies.
The motorcycle insurance premium can be paid online using the same link by selecting the insurance company and you will be safely redirected to the insurance company payment page and the policy copy would be generated immediately after payment.
Motorcycle insurance calculator can be found online on the portal and the premium calculation is made on the basis of the details submitted at the time of premium calculation. Below are the factors which are used to calculate the motorcycle insurance premium:
- Make & Model: Motorcycle premium depends on the make and model of your 2 wheeler. Every company has its own calculation depending on the make and model of your motorcycle. Few models might be charged high premium while other models with the same features might be charged a bit less premium. This is due to the repair costs associated with that particular make and model, the Loss ratio experienced by the insurance company, and many other such factors.
- Cubic capacity: The cubic capacity of the motorcycle decides the premium to be paid by the owner. Cubic capacity can be defined as the capacity of the motorcycle to carry the passengers. The cubic capacity of motorcycles is divided into 4 categories for the purpose of premium calculation. They are a Cubic capacity of less than 75cc, a Cubic capacity of more than 75 ccs and less than 150cc, a Cubic capacity of more than 150cc and less than 350 ccs, Cubic capacity of more than 350cc.
- Age: The age of the motorcycle determines the premium to be paid. For calculating the age of the motorcycle, the date of registration or the manufacturing date is taken into consideration by the motorcycle premium calculator.
- Insured Declared Value (IDV): Insured declared value is the sum insured and the maximum liability of the insurance company in case of an accident. The higher the insured declared value, the higher would be the premium. It is important to strike a balance between the IDV and the premium to be paid. The IDV depends on the age of the vehicle and the common formula is that the IDV is depreciated by 10% each year.
- No claim bonus: No claim bonus is also taken into consideration at the time of motorcycle premium calculation. No claim bonus is the discount provided by the insurance company on the own damage section for not making claims during the previous policy period. It is a kind of reward given to the customer for not making any claims during the previous policy periods. Higher the no claim bonus lower would be the premium.
How to Compare Motorcycle Insurance Plans?
Motorcycle insurance should be taken after comparing the premium from all the general insurance companies on the portal where the insurance quotes can be obtained from all the top general insurance companies. Motorcycle premium plans comparison can save a few of your bucks and the comparison should be done using the below factors:
- Insured Declared Value (IDV):
Insured declared value is the sum insured provided by the insurance company for your motorcycle and is the maximum liability of the insurance company in case of an accident. The IDV provided by the insurance companies varies from one another in a particular range.
An increase in IDV increases the premium to be paid by the customer. It is advisable to opt for the maximum IDV and chose the insurance plan that is offering the maximum IDV at the least possible price. IDV comes into play in the case of total loss or constructive total loss.
- Claim Settlement Ratio: Claims are the most important part of the insurance process. The real usage of insurance comes into play at the time of claim settlement. It is important to compare the claim settlement ratio of the insurance companies before purchasing the motorcycle insurance policy as the claim settlement ratio reflects the chances of your claims getting settled.
- Higher the claim settlement ratio, the higher the chance of your claim getting settled. Any company with a claim settlement ratio of 92% - 99% can be considered the best insurance company.
- Cashless Garages: Claim settlement can be done either cashless or reimbursement but the basic essence of taking an insurance policy is not to spend money at the time of claim. The cashless claim settlement option allows the customers to get their motorcycles repaired at any of the tie-up garages without paying the claim amount. The claim amount in case of cashless settlement is paid by the insurance company directly to the garages.
It is important to check for the list of Cashless garages available in your area of operation to enable you to go for cashless claims. If there are no cashless garages available in your place of residence then that insurance provider is to be avoided. The best motorcycle insurance in India is the one that has more cashless garages in your place of residence.
- Riders/Add-ons: Riders or add-ons are the extra benefits provided in the insurance policy with the payment of an extra premium. The best motorcycle insurance policy should contain the riders or add-ons which help at the time of accidental damage and claim settlement. Riders or add-ons include extra coverage to the 2 wheeler such as Zero depreciation or bumper to bumper coverage, Consumables, Key protection, etc. The riders/add-ons are offered by the insurance companies for a period of 2-3 years after which the riders would not be available.
- In the case of big motorcycles with a cubic capacity of more than 350cc, it is important to have the add on covers till 7 years of vehicle age as the repair cost of these high-end motorcycles would be high. The high-end motorcycles such as Bullet, Royal Enfield, Suzuki Hayabusa, and Yamaha FZ, etc. should have the Bumper to bumper cover till the motorcycle reaches 7 years ago.
Premium is the amount paid by the insured customer for the insurance coverage provided by the insurance company. The premium to be paid by the customer should not be high and at the same time coverage should be adequate.
Premium amount is decided by the insurance companies and it should be reasonable and competitive. Too high premium or too few premium quotes should be avoided by the customers as there might be some hidden clause in it that reduces or increases the premium. The premium comparison for your motorcycle can be done on the Online portal by entering the basic details of your motorcycle.
- After Sales Service: Insurance is intangible and the need for insurance comes at the time of claims and after-sales. There might be endorsements or changes in the policy which might be necessitated. The response and the turnaround time is taken by the insurance company for the after-sales service are to be taken into consideration before deciding on the purchase. After-sales service includes all the endorsement requests from the customers such as name change, address correction, etc., and the claim settlement which is the major part of insurance.
How to Renew Motorcycle Insurance Policy Online?
Motorcycle insurance can be renewed online using the portal with the help of our dedicated agents who guide you to select the right motorcycle insurance as per your requirements. We at PolicyBachat help our customers to get the inspection of vehicles done in case of requirement and help throughout the policy issuance process.
Renewal of motorcycle insurance policy online should be done with caution as the customer gets many choices to select from the list of available options. All the above-mentioned factors should be taken into consideration while purchasing the motorcycle insurance policy online. Motorcycle insurance policy can be renewed online with the below steps:
- Click on the link PolicyBachat and select the two-wheeler insurance option.
- Enter the details of your motorcycle; Make and model, Variant of the motorcycle, Fuel of the motorcycle, and Date of registration, RTO, etc. and click enter.
- Quotes from different insurance companies will be displayed and you can choose the one which suits your requirements.
- Pay the premium directly on the payment page of the insurance company and get an instant motorcycle insurance policy.
Advantages & Disadvantages of Long term Motorcycle Insurance Policy
Motorcycle insurance can be taken for a period of 1 or 2 or 3 years depending on the requirement of the customer. Long-term motorcycle insurance policies are those which offer insurance for more than 1 year. Both the first party and third party insurance can be taken for the long term thereby preventing many hassles every year. Let us understand the advantages and disadvantages of long term motorcycle insurance or long term 2 wheeler insurance:
- Long term motorcycle insurance helps in reducing the hassle to renew the insurance every year. In case you forget to renew your insurance and any accident happens, then without valid insurance, the claim would not be settled.
- Another advantage of long term motorcycle insurance is that the No claim bonus is given at the starting of the policy period and if any claims are made during this period the premium would not increase except for the NCB recovery if any.
- The biggest advantage of long term 2 wheeler insurance is that the increased third party premiums can be escaped by paying long-term premiums. It is widely known that the third party premium increases each year and the same can be avoided by paying one time premium for long term insurance policy.
- The disadvantage with long term motorcycle insurance is that the premium for 2 or 3 years is to be paid upfront in a single installment which may be a financial burden on the customer. In some cases, the customers might not be able to adjust such a high amount in a short period of time.
- Another disadvantage is that once the premium is paid for the long term, the customer may find it difficult to cancel the policy if the service of the insurance company doesn’t meet the expectations of the insured customer.
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