Comprehensive two wheeler insurance combines third-party bike insurance and own damage insurance into a single policy. It provides financial protection from any losses arising from a traffic collision, and also indemnifies the insured against any financial claims from third parties involved in an accident involving your bike. It also provides coverage against theft of your bike/ scooter and any damages resulting from causes other than a road accident including earthquake, floods, riots etc. You could also opt for a personal accident cover that compensates in case of disability or death on the insured in a road accident.
While a third-party two wheeler insurance cover is mandatory by law, you should consider getting a two wheeler comprehensive insurance policy as:
Two terms related to comprehensive two wheeler insurance that leave many new bike owners confused are IDV and NCB. Let us look at each of them in turn.
Insured Declared Value, or IDV for short, is the maximum amount that the insurer would pay in case of a claim. This amount payable only in the case of a total loss or an unrecoverable theft. Simply put, Insured Declared Value is the current market value of your bike.
The value of your two wheeler starts depreciating from the moment you buy it. For example, if the price at which your bike was listed at the time of purchase was ₹1lakh, the IDV based on the current schedule from IRDAI would be 5% less at any point in time in the first 6 months. That is to say, if your bike is in an accident that results in a total loss on the very first day the coverage start – the amount that you can claim would be ₹95,000 only and not ₹1 lakh for which you purchased it.
For purpose of depreciation, the life of a two wheeler is assumed to be five years. Therefore, the total price of the bike is depreciated over a period of five years. Typically, the depreciation is lowest when the bike is new and increases with every passing year.
No Claim Bonus or NCB is a way for the insurer to reward your good driving behaviour. It is a discount that you can avail on your comprehensive two wheeler insurance policy premium if you have filed no claims in the preceding policy period. This discount is available only in comprehensive two-wheeler policies and not on third-party bike insurance policy.
You can avail this discount only if there is no break in the policy at the time of renewal. If you choose to switch insurers at the time of renewal, the new insurer will have to honour the NCB accumulated with the previous insurer as well.
The discount offered as NCB rises with each claim free year. It is at 20% after the first year, 25% after the second, 35%, 45% and 50% for the next three years. The NCB is capped at 50% of the applicable two wheeler insurance premium.
Further, if you buy a new bike after three years of claim free insurance coverage for your existing bike – you would be eligible for the accumulated NCB on the coverage for new bike as well. If you sell your bike to someone else, the NCB would stay with you as it is not accrued to your vehicle. This also means that NCB cannot be transferred to another person.
You can buy a comprehensive two wheeler policy by going to the website of your chosen insurer, and filling the appropriate form on the portal. You would be able to make the premium payment online and the policy would be immediately emailed to your id.
The following documents are to be presented when purchasing a two wheeler insurance policy:
You could purchase a comprehensive two wheeler insurance policy with a policy period of one, two or three years as per your convenience. If you opt for a longer policy period, the insurer may offer you an additional discount on the premium charged.
Deductible is the amount the policyholder agrees to pay out of her pocket in case of a claim filed against the two wheeler insurance policy. It is not a fixed amount, but a percentage of total claim made. Higher the deductible chosen, lower would be the premium but higher would be the out-of-pocket cost in case of a loss event.
Follow the steps below to file a two wheeler insurance claim:
Step 1: If a third-party is involved, note down their contact details and vehicle registration number – if they were riding as well.
Step 2: Note down the contact details of any witnesses around
Step 3: Inform your insurance company about the incident and get information about the nearest cashless garage on their network
Step 4: File an FIR at the nearest police station and get a copy of the report
Step 5: Provide all the requisite documents to the insurer. A representative would contact you to collect the same.
Step 6: A surveyor from the insurer would inspect the damage and make an approximation of expenses involved. Once the approval is made, the garage would start working on the repairs.