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Things To Know About Motorcycle Insurance Online In India 2020


India is the largest two-wheeler market in the world with more than 17 million two-wheelers plying its roads. This translates into a rising number of motorcycles, scooters and mopeds driving on congested Indian roads. Unfortunately, a significant number of two-wheelers are also involved in road accidents.

Importance of Having a Two Wheeler Insurance

It is not surprising to know that anyone who owns a two-wheeler will be concerned by this. That’s why you need to have valid bike insurance on you as it guarantees compensation in times of unforeseen eventualities. This means that you do not end up paying for repairs and medical expenses from your own pocket.

Additionally, under the Motor Vehicles Act, no two-wheeler can be driven on Indian roads without being insured first. A third party insurance policy is mandatory. However, with a comprehensive insurance plan, you can access all features and benefits of a third party policy by default. You can purchase the motor cycle insurance online or offline, as per your convenience.

Having said that, just like any other sector, the insurance segment too undergoes regular upgradations in terms of changes in rules and regulations.

Changes in Two Wheeler Insurance Rules In 2020

As you zoom into 2020, the IRDAI or the insurance regulator in India introduced a series of changes in the insurance rules for two-wheelers.

Here are the things that you should know about bike insurance in 2020.

Third Party Insurance Cover:

In spite of the obvious benefits of purchasing a comprehensive bike insurance online policy, the third party insurance plan continues to enjoy popularity. This type of policy is still mandatory, and all two-wheeler owners must buy this before driving on Indian roads unless they already have the comprehensive cover.

In the category of the third party two wheeler insurance, it has undergone three key changes which you should know about before you go ahead with buying your motor cycle insurance online.

  • A Long-Term, Multi-Year Cover for TP
  • Personal Accident Coverage Goes Up
  • The PAC Is Unbundled

1. Long Term Two Wheeler Insurance:

Those opting to go with third party insurance will have to purchase a long term policy. The term has been increased to 5 years and the payment has to be made upfront. This is applicable on the TP premium only which is fixed by the IRDAI depending on the capacity of the vehicle. However, the OD component of the third party insurance policy will have to be paid annually. 

For motorcycles purchased before this regulation came into effect will keep paying for the TP third party premium on a yearly basis.

This change, however, does not have any impact on elements like no-claim bonus and the IDV. Even with paying the premium for 5 years at once, there is no increase in the actual rate of it. Once you have made this payment, you do not need to worry about it for the next 5 years.

You do have a few options available. 

  • A Multi-Year Long Term Comprehensive Policy: TP and OD coverage under the Long Term, Comprehensive Policy is valid for a period of 5 years. The premium is payable for the entire 5 year period at one shot and renewal of the policy only takes place after the period of 5 years is on the verge of expiry.
  • A Bundled Policy: In case you do not want a financial outlay for 5 years at one go, you can opt for the Bundled policy where you can renew bike insurance every year. While the TP coverage still needs to be paid for 5 years, the OD can be paid on an annual basis.

2. Personal Accident Cover or PAC Come with Enhanced Coverage:

The personal accident cover which was limited to Rs. 1 lakh only under the third party insurance has not been enhanced to Rs. 15 lakhs. This change is applicable to both new and existing two wheeler owners.

While this seems like a positive change, the premium which was Rs. 50 for a Rs. 1 lakh per year cover has now steamrolled to Rs. 750 for a Rs. 15 lakh protection. Additionally, it is up to the owners to decide the tenure of the PAC. They can either choose to go long-term or pay for PAC every year.

3. Opt for Stand-Alone PAC Policies:

A PAC or personal accident policy secures you against accidental death and any total or partial incapacity as an outcome of an accident. Compensation is payable to the policyholder in these situations only.

But the changes brought in by the IRDAI has allowed the compulsory personal accident cover to be unbundled and can be now issued as a stand-alone policy. This is extremely useful for those two-wheeler owners who already have a PAC from a non-life insurance company or have more than one motorcycle.

With a standalone policy cover, you do not need to purchase the cover twice. It also includes insurers across the general insurance sector. But ensure that the PAC of at least Rs 15 lakh has been purchased from same or any other insurance company. Only then is this applicable.

Next Steps

These upgradations in the two-wheeler insurance policies in the new year address the key issue on renewing your policy every year. For many, this can be a hassle. Moreover, your premium remains constant for a period of 5 years which is a definite plus and can result in significant savings.

Therefore, before you go ahead with buying your motor cycle insurance online or offline, these are some key things that you should keep in mind. And always remember to read the fine print before you sign the policy document.

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Disclaimer :The information published on this website is for the public's reference only. Content of this information is to provide an overview of your Insurance needs and should not be relied upon for personal, medical, legal or financial decisions and you should consult an appropriate professional for specific advice for Travel/Health/Motor. Bharti AXA General Insurance Company Limited makes no representations about the suitability, reliability, timeliness, and accuracy of the information, travel, services, or any other items mentioned on this subject for any purpose whatsoever.

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