Frequently Asked Questions (FAQs) – Two Wheeler Package Policy

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What is the scope and cover offered in a two wheeler package insurance policy?

As per the Indian Motor Vehicles Act, 1988, it is compulsory for two-wheeler riders to have a valid Third-Party insurance policy. This insurance, also known as Liability Only Insurance Policy or Act Only Policy, protects riders against any damages caused to a third party (person or property) in case of an accident caused by the insured two-wheeler, given the accident was not deliberate or wasn’t done under the influence of any drugs or alcohol. A Comprehensive Insurance Policy provides additional coverage for damage or theft of the two-wheeler along with the benefits mentioned in the Third Party insurance policy. It safeguards the vehicle against losses/damages caused by natural calamities like flood, lightning, earthquakes, etc. or malicious acts like theft, riots, strikes, and terrorist activity, among others.

The policy gets lapsed if it is not renewed before the due date. However, the expired policy can be renewed in two ways – online and offline. To renew it online, log on to the official website of the insurance company and enter the policy details. After this, you will be asked to make payment. Once the payment is done, your policy will be renewed and policy documents will be sent to your registered e-mail within a few minutes. If you wish to do it offline, you have to take your bike to the nearest branch for inspection along with the necessary documents. No inspection is required if you opt for online renewal.

Two wheeler insurance acts as a safety net for your bike or scooter against financial loss due to circumstances that you may not have anticipated or beyond your control. These could range from damage owing to accidents, natural calamities or theft and burglary and for which the two wheeler insurance policy will offer the insured a compensation based on the policy terms and conditions.

A comprehensive plan provides protection against damage to your own vehicle (OD) and as well as that of the third party. Apart from accidents, it also covers theft and damage to the vehicle by any natural calamities like floods, storms etc. and man-made reasons like riots and vandalism. Buying the third-party policy is mandatory according to Indian law while experts recommend bike owners to opt for a comprehensive policy for more comprehensive coverage.

To buy bike insurance online, the documents required are proof of identity (driving license/passport/Aadhar card/PAN card/government issued ID card), proof of address (driving license/passport/bank or post office passbook/government issued address proof), recent passport size photograph, valid driving license, registration certificate of the bike, net banking/credit card/debit card details (for online payment).

A few key benefits include:

  • No paperwork - You just have to select the policy details, make an online payment, and the policy document will reach your mailbox in no time.
  • Option to compare policies - Customers have the option to compare different policies online and take the final call based on their needs.
  • Saves time - No need to visit an insurance company physically, as it can be done from the comforts of your home…or buy it on websites like eindiainsurance
  • Competitive Premium – Competitive discounts are available if you purchase or renew two-wheeler insurance online, sometimes as high as 70% on the Own Damage (OD) premium.

Insurance premium is the amount of money which the insured pays periodically to the insurer to keep the policy active. The cost of premium depends on factors like age of the insured, location, type of coverage, and claims history (NCB). Failure to pay the premium on time can lead to lapse of the policy.

Bike insurance renewal must be done before the expiry of your existing policy so you can enjoy uninterrupted coverage. Insurance providers usually send reminders to their customers before policy expiration. But by chance, if you miss the deadline, you can renew it even after expiry. However, if you delay it more than 90 days, you will lose your No Claim Bonus and will have to pay more insurance premiums. Also, a delayed renewal would mean a fresh inspection of the vehicle, which may reduce its Insured Declared Value (IDV).

As per the Supreme Court’s recent mandate, a personal accident (PA) cover is compulsory for the owner/driver of two-wheelers. The policy can be bought as a standalone cover or along with your two-wheeler insurance, and provides compensation to the owner in case of death, bodily injuries or any permanent disability due to an accident. It is not mandatory for the pillion rider.

This differs from one insurance company to another but there are some normal situations which will not be covered by any insurance partner. These include any damage done to the vehicle driven by an individual who is without a valid driving license, or under the influence of alcohol. The policy also doesn’t cover regular wear and tear due to the ageing of the vehicle, damages to tyres and tubes unless damaged due to an accident, mechanical or electrical breakdown and failure, theft of accessories unless the bike is also stolen.

Add-on cover is the additional cover that you can buy to boost the coverage of your insurance policy. The add-on covers are not included in the comprehensive two-wheeler insurance and need to be purchased with an additional premium. Some add-ons that you can opt for are zero depreciation cover, return to invoice, engine and gear box protection, Road Side Assistance (RSA) and No Claim Bonus (NCB) protection.

The value of your vehicle depreciates or reduces with the passage of time. While settling a claim, the insurer deducts this depreciation value and you have to pay a larger part of the claim amount. But, if you have zero depreciation cover, the insurance company will pay the entire claim amount without deducting the depreciation amount. You need to pay an additional premium to purchase zero depreciation add-on.

In case of a cashless claim, you just have to pay for the deductibles and the rest of the bill will be settled by your insurance company directly with the garage which has repaired your vehicle. Kindly note that you can only use cashless claim services in your insurance company’s network garages. The reimbursement claim gives you the flexibility to choose any garage of your choice, but you have to pay the full amount of the bill and get it reimbursed later, as per the terms and conditions of the policy.

When a policyholder files a cashless claim, the insurance company pays for all the repair work but the repairs should be done in any of the insurance provider’s network garages. The bill is sent directly to the insurance company and after verification of all the details, the payment is made. In reimbursement claim, the policyholder pays for the repairs and the amount is reimbursed by the insurer after verifying the original bills, receipts, etc. In this type of claim, you can get your bike repaired at your preferred garage and get it reimbursed.

Yes, the insured can choose not to make a claim in such a case. By not making a claim if the damage is minimal, the NCB of the vehicle/driver is protected that will result in a discounted premium at the time of renewal the following year. Do a quick calculation to compare the cost of repair against the premium saving at the time of renewal and then make an appropriate decision.

Yes, there is. Usually, insurance companies prefer that policyholders make a claim within 24 hours of the accident or theft, failing which the claim might get rejected. However, some insurers might consider if there is a genuine reason for delay in filing the claim.

No. If the policy is not renewed on or before the expiry date, it becomes inactive, and you will not be covered during the grace period. So there will be no claim payable by your insurance partner.

It is important that the two wheeler insurance policy is active/live on the date and time of the accident. So, your insurance company is not liable to pay for any claims, even if it expired just a day before the accident.

The surveyor will make an inspection to check the extent of damage done to your two-wheeler before you send it to a garage. The surveyor will make an estimate of the repair cost and submit the report to the insurance company for further processing.

Some common reasons for claim rejections are policy lapse, providing incomplete or false information, loss that is not covered in the policy, filing the claim after deadline, driving without valid DL, driving in an intoxicated state, and false claims.

You should contact your insurance provider and request them to include the required changes in your two-wheeler insurance policy.

While selling your bike, it’s important to transfer your insurance policy to the bike’s new owner. By doing so, you will be free from all liabilities if the bike is involved in any accident in future. However, the No Claim Bonus, accumulated in your policy, can be transferred to your name which can be used for your new vehicle. You also have the option to cancel the existing policy at the time of selling.

Yes, you can transfer the current insurance to your new vehicle. You have to inform the insurance company about the change in vehicle and also pay the difference in premium, if any.

Yes, you are eligible for discount on your insurance premium if you install anti-theft devices certified by the Automotive Research Association of India (ARAI). This is because an anti-theft gadget reduces the risk factor for the insurer.

In case of theft or ‘total damage’, the owner will be paid the insured declared value of the bike. The insurance company may hire a private investigator to track the stolen bike. In such cases, the claim settlement process can take a little longer. To ensure there are no anomalies, the policyholder should immediately file an FIR, intimate the insurer and RTO, and keep the required documents ready.

Yes, the policy can be cancelled anytime during the policy period. But you will get the refund as per the terms and conditions of the policy issued by the insurance company.

To get a duplicate copy of the policy online, visit the insurance company website to register the request for a duplicate policy. Then, you have to file an FIR at the nearest police station, and write an application providing details like policy number, name etc. and how the document was lost. Lastly, you need to sign a bond with the insurer for a duplicate copy of your policy document.

The premium amount depends on factors such as the type of insurance taken (comprehensive or third part cover), claims history (NCB available to the driver), model of the bike, age and the registration location of your bike.

Once you opt for Emergency Assistance Cover (similar to Roadside Assistance (RSA) for your Four wheeler, you get round-the-clock assistance to mitigate any technical or mechanical breakdown issues. This add-on benefit covers minor repairs on-site, punctured tyres, battery jump starts, refuelling the tank, lost key assistance, duplicate key issue, and even towing charges up to 100 km from your registered address. In some cases, the insurer also bears the expenses related to accommodation if the policyholder needs a place to stay while the bike is being repaired.

Yes. Most insurance companies in India offer discounts on the premium if the policyholder is a member of Automobile Association of India (AAI). This discount is around 5%.

Electrical and non-electrical accessories are fittings which people make in their vehicles. Electrical accessories usually include music system, fog lights, LCD TV, etc. The non-electrical accessories are seat covers, wheel caps, CNG kit and other interior fittings. Their value is calculated according to their initial market value and then the depreciation rate is applied.

Inspection of a vehicle is mandatory if you renew your vehicle offline after the expiry date. You have to take your bike to the insurer for inspection along with the necessary documents.

If someone borrows your bike and causes damages to the bike or a third-party then your bike insurance will still cover for the losses and damages as mentioned in the policy wording. However, you need to have proper documents of the bike and the policy. Also, you won’t be compensated if the rider was riding in a drunk state or without a valid two-wheeler licence.

Yes, NCB is transferrable when you switch from one insurer to another.

The Insured Declared Value (IDV) of your bike is the sum insured coverage you can claim in case of total loss or damage to your two-wheeler. Simply put, it is the current market value of your two-wheeler. The bigger the IDV, the higher will be the insurance premium.

A network garage is a list of garages registered with the insurance company, where the insured can get their bike repaired in a cashless manner. Here the insured will need to pay only the compulsory deductible under the policy, rest will be settled directly by the insurer to such a network garage. You can check out the updated list of network garages of your insurer on their website.

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