Step by step guide on two wheeler insurance policy in India

Do you own a two-wheeler? You might have done full research to find the right dealer for your purchase. You might save and arrange funds and documents also ready while purchasing it. But do you know that the Indian government has made insurance necessary for a two-wheeler?

But many of the buyers do not know anything about insurance. They sometimes have to spend lots of time and energy to know the terminology of insurance. You can now read this post to know all about two-wheeler insurance from here. We are going to discuss what, why and how of two-wheeler insurance online and offline options.

Two-Wheeler Insurance-What?

Offline or online two-wheeler insurance is an agreement between the service/insurance provider and the policy buyer. As per the agreement, the service providers agree to pay the cost of any type of damage to the vehicle or the owner both with some terms and conditions like timely premium payment.

Two-wheeler insurance policies are usually valid for one year. However, some providers offer long-term policies also with some discounts. You should always renew the policies before their expiry date to remain always protected.

Types of Different Insurance Policies

There are mainly two types of bike or two-wheeler insurance. Comprehensive and third-party insurance. The definition of both of these types are given below:

i)                    Comprehensive Bike Insurance

Comprehensive two-wheeler insurance is also known as damage insurance. This insurance has a wider range of coverage and protection. Comprehensive insurance offers mandatory third-party coverage along with financial protection.

As these insurance plans offer extra benefits to the buyers so they are more expensive as well. New bike/two-wheeler owners can buy comprehensive insurance for 3-5 years as well. The premium amount for comprehensive insurance is mostly pre-set by the provider.  

ii)                    Third-Party Insurance

Third-party insurance policies mostly cover the damage and injuries caused by someone else to the vehicle or the owner. As per Motor Vehicle Act, for any bike or two-wheeler, third-party insurance is mandatory in India. For a fresh purchase, 5-year third-party insurance is mandatory. The rate of the insurance is decided by IRDAI.

Third-party and comprehensive insurance plans have only one difference. Comprehensive insurance covers and protects third-party and owners, while in the case of third-party insurance, it only covers third-party damage or loss.

Offline or Online Two-Wheeler Insurance- Why?

As we have described above that any type of insurance gives protection to the vehicle and owner. The insurance covers lots of things which it has made mandatory. If you doubt whether insurance is good for you or not then, here are some specific reasons to buy it. A third-party plan gives you the following benefits:

·         Cover of legal liability arising from physical injury or damage

·         Cover of legal liability arising from death

·         Cover of legal liability arising due to damage to property

·         Cover of legal liability arising due to damage to the vehicle

However, in the case of comprehensive insurance, you also get coverage for the vehicle and owner damage. So, if you want to lessen your hurdles caused due to unwilling mishappening, then an insurance plan can help you with that.

Two-Wheeler Insurance-How?

If you want to buy the insurance then follow the below steps as step-by-step process to buying the insurance:

Step 1: First, before purchasing the insurance either consult with an expert or a friend to decide which type of insurance is best for you. As all plans do not match everyone’s requirements, so choose the best suitable plan for you.

Step 2: After consulting with friends or experts you can compare the plans online as well. Decide whether you need a basic or comprehensive insurance plan. The right analysis of your need will help you decide the best suitable plan.

Step 3: Check and compare the offerings of several service providers. Know what premium they are asking for and what additional features they are offering.

Step 4: Check whether the company is offering IDV (Insured Declared Value) of the vehicle or not. IDV is total protection against damage or theft that is beyond repair. IDV is the difference between depreciation and the manufacturer’s selling price. :

Step 5: Check for add-ons on the current policy they are also known as riders. By paying the higher premium you can get riders as well along with basic benefits. Service providers will give you full detail.

Step 6: Before finalizing your plan read the legal document properly. You can take the help of some experts here too, who can explain the terms.

Step 7: Have a word with the insurance agent first and then finalize the plan,

Step 8: As the last step just make the payment after which you will receive a full policy document by email. In case of offline purchase, you will receive it by post.

Conclusion:

While buying the insurance policy just consider it like an investment not as an expense. In any adverse situation like an accident, loss of vehicle or damage you can use the vehicle. You should always carry the policy document with you if you are travelling anywhere in your vehicle.

Earlier IRDA only allows the policy for one year, but now you can buy it for several years as well. The policies can be bought for a stretch of up to 3 years. Check several two-wheeler insurance online options here.