Two-wheeler Insurance Premium Calculator

two Wheeler Insurance

What is Two-wheeler Insurance?

Two-wheeler Insurance is an agreement through which an insurer promises to provide financial protection against any losses that arise from traffic collisions and against any third-party liabilities arising from any incidents involving your two-wheeler. The agreement may also include financial protection against theft of the bike/ scooter and any damage arising out of causes other than traffic collision like earthquake, floods, riots etc. In exchange the insured has to pay a premium as specified in the agreement. The insured could either be the owner of the vehicle or any rider of the vehicle, including pillion rider – as specified in the agreement. A third-party liability vehicle insurance and a personal accident cover have been made mandatory by Motor Vehicles Act, 1988  for all motor vehicles plying on public roads.

What is Two-wheeler Insurance Premium Calculator?

A Two-wheeler Insurance Premium Calculator is an online tool that you can use to estimate the premium required to be paid for insuring your vehicle. The calculator generates the estimate bases on basic information that you provide. This includes the make, model, and  variant of the two-wheeler, year of vehicle registration, year of manufacture, place of registration, any applicable no claim bonus and any available previous claim history. Any add-on covers you would like to avail are also taken into consideration.

 

The premium for two-wheeler insurance depends on the following factors:

  1. Insured Declared Value of the two-wheeler
  2. Cubic capacity of the engine
  3. Age of the two-wheeler
  4. Geographical location
  5. No claim bonus
  6. Whether the two-wheeler will be used for commercial or personal purposes

Remember that the Insured Declared Value of your vehicle is lower than the price at which you bought it. It is at its highest when the vehicle is brand new, and goes down with time as per a fixed schedule provided by IRDAI.

 

You can also choose to avail a personal accident cover as part of your two-wheeler insurance. This cover would attract additional premium. While earlier, personal accident cover was a compulsory part of the vehicle insurance policy, IRDAI has now allowed these to be unbundled. Based on current regulations starting January 1, 2018, you need not purchase a personal accident cover for owner-driver with your bike insurance if you already have a similar cover with sum assured of at least ₹15 lakh.

Components of a Two-wheeler Insurance Premium

Two-wheeler Insurance cover consists of three separate coverages, each of which is priced individually. These are:

  1. Own Damage (OD) Cover

This cover protects you from financial implications of damages or losses sustained by your two-wheeler. These damage/losses could arise from:

  1. Road accidents
  2. Theft
  3. Natural disasters like earthquake, cyclones, floods, etc
  4. Man-made disasters like fire, riots etc.

    2. Third Party Liability Cover

This cover protects you against legal liability arising from any accidents for which you are considered responsible. This liability could arise from injury to a third party person or damage to a third-party property. As per theMotor Vehicles Act, 1988 , this form of insurance is mandatory for all motor vehicles plying on public roads in India. The premium for third-party liability insurance cover is determined by IRDAI on basis of your engine’s cubic capacity. IRDAI revises these rates periodically to reflect the evolving risk. Third-party liability cover provides compensation in case of:

    1. Death or bodily injury to the third party
    2. Damage to third-party property

 

  1. Personal Accident Cover (PAC)

This is another form of insurance cover that is mandatory by law for all riders on Indian roads. This cover acts as a financial support in case the insured is rendered disabled due to a road mishap or suffers a fatal accident. Earlier, this cover was sold bundled with vehicle insurance policy. But the new regulations have allowed for the unbundling of both these covers. IRDAI has mandated that each rider should have a minimum personal accident cover of ₹15lakhs. The premium for personal accident cover for owner- driver is decided by IRDAI on periodic basis.

 

In addition to these, you can also opt for add-on covers to customize the insurance policy to your specific requirements. Another component of your two-wheeler insurance premium is the NCB discount you may have accumulated. Therefore:

 

Two-wheeler Insurance Premium = OD Premium + TPL Premium + PAC Premium + Add-on Cover Premium – No Claim Bonus

How Do You Calculate the Premium for New & Old Two-wheeler?

The details required to calculate the premium for new and old bikes differ slightly. These include:

 

Calculation of premium for new two-wheelers

You will have to provide the following information to calculate the premium for new two-wheelers:

  1. Age of the two-wheeler
  2. Whether the two-wheeler will be used for personal or commercial purposes
  3. Fuel type
  4. Insured declared value
  5. Cubic capacity of the two-wheeler’s engine
  6. Area where the two-wheeler was registered
  7. Accumulated no claim bonus, if any
  8. Owner-driver’s personal details including
    1. Age
    2. Gender
    3. Occupation
  9. Voluntary deductibles

 

Calculation of premium for old two-wheelers

The information needed for determining premiums for old two-wheelers additionally includes:

  1. Current policy details
  2. Claim history
  3. Previous owner’s details, if any

Remember that only the Own Damage premium and any add-on premiums are decided by the insurer. Third party liability premium and personal accident premium are fixed by IRDAI.

Factors that Determine Your Two-wheeler Premium

There are many factors that impact the premium you will be charged to ensure your two-wheeler. The most significant of there are:

  1. The two-wheeler itself

A premium bike would attract a higher premium compared to a bike targeted towards the masses. Further, if you make any modifications to your bike or add accessories that did not come from the manufacturer – these may increase the value of your ride and hence result in higher OD premium. Some modifications may make the bike less safe to drive and insurer would want to increase the premium collected accordingly

  1. Coverage selected

The greater the coverage you select, the higher would be the premium charged. If all you want to get is a third party liability cover, you will be paying a small premium but this will leave you vulnerable to financial losses in case of damage to or theft of your vehicle. Similarly, if you choose to get add-on covers – each additional cover will increase the premium you have to pay.

  1. Engine capacity

The third party liability premium is dependent only on your engine’s cubic capacity. These rates are periodically revised by IRDAI.

  1. Age of the Two-wheeler

The OD premium charged by your insurer depends on the Insured Declared Value (IDV) of your bike. IDV is arrived upon by deducting depreciation from the initial price at which you would have bought the two-wheeler. The depreciation increases with the age of your vehicle. Therefore, older the two-wheeler lower is the premium you have to pay.

  1. Discounts

You could earn various discounts on your two-wheeler insurance premiums. These include

  1. No claim bonus
  2. Voluntary deductibles
  1. Location where the two-wheeler is registered

The risk of an accident or two-wheeler theft varies with the location you drive at. Higher traffic density results in higher chances of accident – and hence higher premiums.

Significance of Two-wheeler Insurance Premium Calculator

You should use a Two-wheeler Insurance Premium Calculator before you decide on which policy to purchase as:

  1. You get to compare various policies and become aware of what the market has to offer
  2. It makes the process of estimating premium convenient, with no third-parties like agents being involved
  3. You get an idea about the various documents needed to get insurance cover
  4. You get to see the trade-off between coverage provided and premium paid
  5. You get to choose the policy that best fits your requirement and get the best available deal.

You don’t actually have to make any calculations to determine the premiums, the calculator will do it all for you.

How to determine premiums on Two-wheeler Insurance

You can determine the premiums on two-wheeler insurance by using the Two-wheeler insurance calculator provided. The calculator uses information that would be readily available with the driver-owner to make the estimate. This includes information like the extent of coverage sought, make-model-variant of the two-wheeler, the age of the vehicle and the RTO it was registered at, any previous claim history, no claim bonus details and demographic details of the owner-driver. You should also provide the details of any discounts you may be eligible for. This includes discount for opting for a longer policy period (if applicable), and any voluntary deductibles you agree for.

How Two-wheeler Insurance Premium is Calculated?

The first step to calculating the two-wheeler insurance premium is to calculate the IDV of the two-wheeler. The IDV is calculated by reducing the depreciation for the two-wheeler from its ex-showroom price. The depreciation rate is calculated based on the age of the two-wheeler and a fixed schedule. The schedule is periodically revised by IRDAI in consultation with the industry. For two-wheelers older than 5 years, no fixed formula is used and the IDV is arrived on by mutual consent between the vehicle owner and the insurer.

 

Once the IDV is determined, the next step is to calculate any discounts the insured is eligible for. This includes any accumulated no claim bonus, benefits for installing anti-theft devices and obtaining a  membership of Automobile Association of India (AAI) and any voluntary deductible opted for. Then, any modifications made to the vehicle are considered, including any accessories added, to determine its impact on the value of the two-wheeler.

 

Once these numbers are calculated, the insurer uses their own formula to arrive at OD premium for insuring the Two-wheeler.

How to use Two-wheeler Insurance Premium Calculator of Bharti AXA

Bharti AXA Two-wheeler Insurance Premium Calculator allows you to evaluate your insurance needs and align them to the policies available. To use the calculator you will have to provide information like Vehicle Registration Number, no claim bonus declaration, some vehicle details, the age of your car, the registration location, the cubic capacity, and the IDV of the vehicle.

 

To begin using the calculator, you first need to select whether you wish to renew a policy or purchase a new policy. Remember, even if you have a policy with another insurer you can transfer it to Bharti AXA at the time of renewal. In case you would like to renew your policy, just provide the details of your previous policy and all the information will be auto-populated from the system. Just verify the details and get the estimated premium for renewal.

 

In case you would like to purchase a new policy, you will have to provide the two-wheeler details as listed above. Basis this, the calculator will generate a quote for you.

Policy Name:

IRDAN139RP0009V01200809

Download policy brochure

UIN:

UIN : Smart Drive Two Wheeler Insurance

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