Indian two wheeler insurance can be one of the most crucial financial safety nets for millions of owners of two-wheelers. Such is the time when the number of registered two-wheelers in the country has shot up sharply to more than 20 crore (200 million)-when proper protection has never been as much in demand as it is now.
The two wheelers and four wheelers and above stand at more than 21 crore and over 7 crore, respectively according to the report by Economic Times. From the crammed urban roads to wide open countryside rural highways, Indian riders face a whole gamut of risks-from accidents and thefts, making having bike insurance not only a legal necessity but economical as well.
In India, law mandates that two-wheelers have to possess third-party liability insurance under the Motor Vehicles Act of 1988 before it could legally be allowed to occupy the roads. It would then be able to get liability coverage in the event of a rider causing harm or damage to any other person or property or his property.
According to the Ministry of Road Transport and Highways, in 2022, the total casualties due to road transport accidents in India were caused by two-wheelers, making bike insurance a very critical mitigative step against third party liabilities, damages, and personal injuries.
In the eye of law, under the provisions held in the Motor Vehicles Act, 1988, a two-wheeler is mandatorily obligated to provide third-party insurance.
Vehicles Amendment Act to inflict a first-offense fine of ₹2000 and a penalty of ₹4000 for every subsequent offense against the uncovered riders.
According to the data available at the Ministry of Road Transport and Highways, there were over 20 crores, or 200 million, two-wheelers in India in 2021.
Since population in urbanized zones and the disposal incomes per head are increasing trend, there is also scope for two-wheelers to increase positively at the rate of 7-10 % annually.
The cost of repairing an accident damaged bicycle range between ₹10,000 to ₹50,000 and that depends solely on the damage. Comprehensive insurance covers the repair costs, medical costs, and third party liabilities results in significant relief.
Currently, almost all two-wheelers do not have any form of insurance covers. This makes it a serious risk to both the two-wheeler users and road walkers as it throws an unknown darkness about finance for victims of uninsured two-wheeler accidents.
Zero Depreciation pays full compensation without providing depreciation; that too increases premiums by 10-15% but provides more financial security.
Long-term third-party insurance is now compulsorily provided with all newly purchased two-wheelers with a tenure of at least 5 years.
There are thousands of types of bike insurance. However, all of them differ in various ways as far as the cover is concerned. The rider can go in for easy liability to a much more comprehensive insurance cover-it depends on the requirement and wallet of the rider. There are many types of bike insurance, and so one needs to know what each type is all about and what it covers before going for the right cover.
Third party liability is the most common and, indeed a most serious compulsory form of bike insurance both in India and most countries in the world.
Coverage:
This would mainly be coverage for the damages or injuries you may inflict on third parties or their properties as liabilities from the accident. Third parties’ bodily injury or death and damage to properties are covered.
Limitations:
It fulfills all the legal requirements, but it provides very low cover in case the damage happens to your cycle or you suffer injuries. It has been mentioned while releasing a statistic from IRDAI, and it says more than 80 percent of two-wheelers plying on Indian roads fall under third-party liability insurance.
Premiums:
This insurance premium is state-regulated and, hence, low or high compared to the comprehensive policy. For example, for FY 2023-24, the premium of a bike having an engine capacity of between 150cc to 350cc is ₹1,366.
Accident Statistics:
As per statistics, two-wheelers accounted for 44.5 percent of all road accidents in India during the calendar year of 2021 with close to 1.5 lakh third-party liability policy claims.
There are two types, and third party liability comes next, and the other one is the protection of damages to your own bike.
Coverage:
This type of insurance covers the insured against diverse risk categories, such as accidents, theft, fire, vandalism, and natural calamities. It also includes third party liability cover and damage to the insured bicycle. Third party insurance is costlier than the comprehensive one. Now, for this kind of insurance policy, a range from ₹1,500 per year to ₹3,000 is there for bikes with an engine capacity of 150cc and 350cc, respectively.
Market Penetration:
It is reported by IRDAI that only 20% of two-wheeler owner has purchased a detailed version of two-wheeler insurance, yet it reveals that people are becoming aware to have better coverages at the risk time.
Claim Settlement:
There is a claim settlement rate of almost 90% complete settlement ratio, which would point how efficiently the same insurance company would clear the claims.
Extra add-on covers which include zero depreciation cover where the complete claim is compounded without considering any sort of depreciation.
Two-wheeler insurance is that general term usage of which describes different types of policies specifically designed for bikes or scooters.
Coverage:
It provides third-party liability cover, own damage, and roadside assistance while including personal accident insurance. The coverage is different hence suitable for every rider.
Customization:
Its length and width can be customized as per what the rider feels he or she is most in need of, which is why this is such a popular variant among bike owners.
Gross Market:
By end-2021, there are 20 crore two-wheelers. Only 25% of the population has comprehensive insurance for a two-wheeler. For the remaining 75%, it is just third-party liability cover. The sales of electric two-wheelers have increased by 132% in FY 2022-23 with 8.3 lakh units sold in India. According to ET TIMES, it brings riders to a more customized insurance that will cater specifically to the needs of their bike.
There are numerous benefits of online bike insurance, and hence the majority of the riders today want to buy online in this world of digitalization. And here’s the reason why you should opt for online purchasing of bike insurance with perfect statistics as support for it:
Safety First: All the portals of online insurance employ secure payment gateways and encryption technologies so that all your personal and financial information would be well-guarded. This also gives flexible payment options, credit/debit cards, net banking, digital wallets, and gives peace to the transaction .
Anywhere, Anytime: The online platforms make the purchase of policies or renewals available at any time without the constraints of office hours and locations. Buying bike insurance online gives riders ease and liberty but will ensure that they receive something much more informed, secure, and also accessible experience as a rider.
In summary, buying bike insurance online not only provides convenience and flexibility but also ensures a more informed, secure, and accessible experience for riders.
Type of covers they are offering three liable, comprehensive cover, and others of personal accident insurance.
Companies charge different premiums. So, it is important that you pay a price that is affordable for the kind of coverage you are looking to buy.
Look for the high settlement ratio as they are likely to be more practical and serious concerning the settlement of claims.
Search for what is excluded and not included under what the policy will cover in order to ensure it will fill your needs.
Grade the quality of customer service you might be able to receive from the company regarding how quickly they might arrive and what assistance you could get if needed to process a claim or answer a question.
Well, one is obviously looking for that no-claim bonus wherein at the end of every year, wherein no claims are made, there is a cut in premium.
There are adds or add-ons like roadside assistance or engine protection is present. One needs to check for any discounts so one can reduce the premium.
Select an insurance company offering online convenience so that management of the policy, renewals, and claims do not wrinkle up.
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