In the bustling streets of India, two-wheelers are not just vehicles but lifelines that weave through congested traffic, saving time and offering flexibility. With the growing number of two-wheelers, the importance of having robust two wheeler insurance cannot be overstated.
While many might consider insurance as just another mandatory document, there’s a lot beneath the surface that can significantly benefit bike owners. Here are five things you probably did not know about two wheeler insurance, shedding light on its unseen advantages and crucial aspects.
1. It Covers More Than Just Accidents
Most two-wheeler owners purchase insurance with a primary focus on accident cover. However, comprehensive two wheeler insurance goes beyond just accident coverage. It encompasses theft, natural disasters like floods and earthquakes, and man-made calamities including riots and vandalism.
For instance, during the unfortunate floods in Chennai in 2015, many two-wheeler owners were unaware that their insurance covered natural disasters. Those with comprehensive coverage could claim and receive compensation for their damaged vehicles, significantly mitigating their losses.
2. No Claim Bonus (NCB) Can Lead to Substantial Savings
The No Claim Bonus is a benefit that many are aware of but few understand its full potential. NCB is a discount offered on the renewal premium for every claim-free year.
This can start at 20% for the first year and go up to 50% for five consecutive claim-free years. This means if you haven’t made any claims in five years, you could potentially cut your insurance premium in half.
Considering the average premium costs, this could mean substantial savings, especially for premium or sports bikes where the insurance costs are naturally higher.
3. Long-term Policies Offer Convenience and Savings
Introduced as a measure to ensure that more two-wheelers are insured, long-term two wheeler insurance policies, typically spanning three years, are a boon many are unaware of.
These policies not only save you from the hassle of annual renewals but also protect you against yearly increases in premium rates. For example, if you purchase a three-year policy, you are effectively locking in the premium rate, safeguarding against any regulatory or inflationary increases that might occur in this period.
4. Add-ons Can Be Game Changers
While the base two wheeler insurance policy offers significant coverage, the real game-changer can be the add-ons or riders that you can attach to your policy for an extra premium.
These include zero depreciation cover, engine and gearbox protection, roadside assistance, and more. Zero depreciation cover, for instance, ensures that in case of a claim, the depreciation value is not deducted from the claim amount, which can significantly increase the claim settlement amount. Given the rough road conditions in many parts of India, an engine protection rider can save huge costs related to monsoon-induced damage to the engine.
5. Your Insurance Can Offer Legal and Financial Protection Against Third-Party Liabilities
In the unfortunate event of an accident involving your two-wheeler, where there is property damage or bodily injury to a third party, the liability can be financially crippling. Two wheeler insurance covers these third-party liabilities, offering legal and financial protection.
This means that in addition to covering the damages to your own vehicle, your insurance can save you from potential financial ruin due to legal costs and compensation payouts.
The Role of Insurance Aggregators in Simplifying Choices
Navigating the complexities of choosing the right two wheeler insurance can be daunting, given the myriad of options available. This is where insurance aggregators like Digibima come into play, simplifying the process by offering a platform to compare different policies.
With a focus on transparency and helping customers make informed decisions, such platforms have revolutionized how insurance is purchased, offering convenience and customized choices at the fingertips of two-wheeler owners across India.
Incorporating Real-life Examples and Recent News
In recent news, the Indian government’s push towards digitalization of insurance documents has made it easier for two-wheeler owners to carry and present their insurance, reducing the hassles during traffic checks and when making claims.
The introduction of long-term insurance policies has been a response to the previously low penetration of two wheeler insurance in the country, which saw many riding uninsured vehicles, risking heavy fines and financial losses.
Conclusion
Two wheeler insurance in India is a multifaceted tool designed not just for compliance but for the financial and legal protection of the rider. Beyond its facade of being a mere regulatory requirement, it offers layers of security, savings, and peace of mind. By understanding and leveraging the lesser-known aspects of two wheeler insurance, riders can navigate the roads with greater confidence and assurance.
FAQ Section
Q1: Is two wheeler insurance mandatory in India?
A: Yes, at least a third-party liability cover is mandatory for all two-wheeler owners as per the Motor Vehicles Act, 1988.
Q2: Can I transfer my NCB to a new vehicle?
A: Yes, the NCB is tied to the policyholder and not the vehicle. Hence, it can be transferred to a new vehicle owned by the same individual.
Q3: What is the difference between third-party and comprehensive two wheeler insurance?
A: Third-party insurance covers damages and liabilities towards a third party only, while comprehensive insurance covers damages to your own vehicle in addition to third-party liabilities.
Q4: How can I lower my two wheeler insurance premium?
A: You can lower your premium by opting for a higher deductible, accumulating NCB, installing anti-theft devices, and comparing policies through aggregators to find the best deal.
Q5: Are there any exclusions in two wheeler insurance policies?
A: Yes, common exclusions include normal wear and tear, mechanical or electrical breakdown, driving under the influence of intoxicants, and damages due to war or nuclear risk.
