Two wheeler insurance encompasses vehicles such as motorcycles, mopeds, scooters, auto cycles and even motorized pedal cycles. All two-wheeler insurances in India are governed by IMT (Indian Motor Tariff) and the basic principle of all motor insurance policies is the same as that which is applicable to liability insurance or property insurance in general. The salient feature of two wheeler insurance is that the owner of the vehicle should have a legal relationship to the vehicle and will be benefitted by the safety of the motor and also stands to lose by and damage or injury to the vehicle.
Following are the two main types of two-wheeler insurance policies
Act Only Policy: It’s a liability policy that covers mainly liability towards third parties. It covers against any damage or injury to the insured vehicle and its accessories
- By Fire/explosion/lightning
- By strike or riot
- By natural calamity (flood/ earthquake/ cyclone)
- By accident(s)
- By malicious act
- And/or by any damage to the vehicle on road, inland waterway, rail, air or elevator.
Package Policies: These include both own damage losses to the vehicle as well as liability losses. It provides protection against liability that may arise due to accident for any injury /death of the person or any damage caused to the vehicle.
Some general exceptions:
- Under two-wheeler insurance policies one is not covered against
- General depreciation of the vehicle
- Normal wear or tear of the vehicle, any mechanical or electrical breakdown.
- Any damage or loss to the vehicle is not covered if the person is driving under influence of liquor.
- Theft of parts and accessories of two-wheelers are not covered
- If the vehicle is being driven without valid paper works and driving license cannot be claimed.
Basis on which premium is charged for two-wheeler insurance:
- The vehicle value as well as the cubic capacity of the vehicle
- Age of the vehicle
- Area where the vehicle is registered
Vehicles are insured at a fixed value known as Insured’s Declared Value (IDV) and is calculated on the basis of the invoice price of the vehicle as well as the additional expenditure of any accessories bought along with the vehicle after deduction of depreciation value for every year. Period of most insurance policies are for one year and it is renewable annually.
There are again full cover policy (both person and vehicle are insured fully), third party insurance (covers damage to property and personal injury) and comprehensive insurance (covers loss or damage to vehicle, third party liability including death or injury caused by your vehicle to third party person and covers damage caused to the property of third party person by your vehicle as well as accident cover to owner of the vehicle), etc.
One can also browse the net and buy insurance policies online as well from the comfort of home and office. It is a hassle-free process with no paperwork and without any extra charge. Additionally, the policy can be issued instantly as you complete the online transaction. So there is no middle man or third part involved between your vehicle insurance and the insurance company. While buying an insurance policy make sure that you learn the nuances of claim process.