A motorbike is among the most preferred ways of travel in India, mostly because of its ability to manoeuvre narrow lanes and heavy traffic with ease. However, you must be cautious and follow certain measures to ensure that your bike stays protected. One of the best ways to protect your bikes is by. purchasing a bike insurance policy.
With a suitable two wheeler insurance policy, you get financial protection if something happens to your vehicle. It is easy to buy two wheeler insurance online; you can visit the website of any leading insurance provider, peruse their bike insurance plans, and buy the one most suited to your insurance requirements and budget.
For instance, Tata AIG, one of India’s leading insurers, offers a wide variety of two wheeler insurance policies online. You can purchase TATA AIG two wheeler insurance online by following a simple and quick process. It is advisable to compare different plans to select the most suitable insurance policy for your bike.
You must also study the rules set by the Insurance Regulatory and Development Authority of India (IRDAI) for bike insurance policies in the country.
New Bike Insurance Rules You Should Know About Before You Purchase a Bike
- Owner-driver or personal accident cover:
Based on the latest motor insurance rules released by the IRDAI, the limit on the compulsory Personal Accident Cover in a bike insurance policy has been raised to ₹15 lakhs. Along with this, the Honourable Supreme Court of India has made it compulsory for all new two-wheeler owners to purchase a 5-year insurance cover.
These latest rules will be applicable to both third-party liability and comprehensive bike insurance plans. The policy will cover the driver or owner for accidental death, partial disability, permanent total disability, and a temporary total disability caused by the accident.
A two wheeler insurance plan functions based on certain rules, including the following:
- In the event of an accident, the insurance company shall provide financial assistance depending on the coverage amount and the degree of the bodily injury the policyholder has suffered.
- The compensation scale for death is 100% of all the terms and conditions listed in the policy document.
- If the policyholder is partially disabled, loses both limbs, or loses a limb and an eye, they will get 100% of the compensation mentioned in the policy.
- If the policyholder loses an eye or a limb due to an accident, the insurance company will provide 50% compensation.
- If the policyholder faces any bodily injuries other than those listed above, which can cause the individual to be completely disabled, the compensation amount will be 100%.
However, certain conditions are to be followed while settling a bike insurance policy claim:
- The insurer’s total liability mentioned in the insurance claim cannot be higher than ₹15 lakhs.
- The policyholder is not eligible to file a claim if an accident occurs due to intended self-harm or attempted suicide.
- The policyholder will not be eligible to file a claim if the accident gets reported as a case of driving under the influence of alcohol or drugs.
- The policyholder will get the insurance coverage only if they hold a valid driving license.
Depreciation is the gradual fall in the ‘Insured Declared Value’ of a two-wheeler. The IRDAI has set some basic rules for estimating the amount of depreciation for different categories of vehicles. As a two-wheeler is made up of several different parts and components, each part has been assigned a specific percentage for depreciation.
Here is the depreciation percentage to be followed for the different parts of a two-wheeler:
- For the components made out of fibreglass, the depreciation percentage is 30%.
- For the components made from nylon, rubber or the tubes, batteries, plastic parts and the tyres, the depreciation percentage is 50%.
- There is no depreciation for the components that are made of glass.
- The depreciation percentage for the components made out of metal will be mentioned in the policy document.
If you wish to get an exact idea about the depreciation percentage of the different components, you can peruse the insurance policy document.
- Complete bike insurance policy exclusions:
As per the IRDAI norms and regulations, the comprehensive insurance plan will not provide coverage for the following conditions:
- Wear and tear: When a two-wheeler is used regularly, it is bound to suffer from wear and tear. Furthermore, the bike’s parts can be damaged due to prolonged usage of the vehicle. An insurance claim for fixing or replacing these parts will not be allowed under a two-wheeler insurance plan.
- Theft of bike accessories: If a policyholder’s bike accessories are stolen from their house, then they can’t file for an insurance claim. However, they can file a claim if their vehicle was stolen at the same time.
- Illegal activities: If the policyholder’s vehicle gets damaged because of illegal activities like illegal racing, then the insurance company will not process the claim.
- Riding under the influence of alcohol or drugs: If the policyholder’s vehicle is damaged because of riding it in an intoxicated state, their insurance claim will not be processed.
- Deliberate damage to a bike: If the insurance company finds out that an insured bike has been damaged with the sole purpose of filing an insurance claim, said claim will be rejected.
- Road etiquette:
There are certain traffic rules that every bike owner has to adhere to. Listed below are some rules that policyholders should know:
- If an individual’s fine for an offence is not listed in the new rules, they will have to pay ₹500 for the first time and ₹1500 for the repetition of the offence.
- If the policyholder does not cooperate with the authorities, they will be charged an additional fine of ₹2000.
- Driving the vehicle without a driver’s license will lead to a fine of ₹5000.
If you are a bike owner in India, you must get an insurance policy for the vehicle. Your bike can either be new or as old as 15 years to qualify for a two-wheeler insurance policy. Getting an insurance policy for your bike is not only a legal requirement but also an important prerequisite for safe bike ownership.
You must read and understand the guidelines and new rules for two-wheeler insurance set by the IRDAI, particularly before purchasing a bike insurance policy. Learning about these rules can help you immensely whilst filing a claim.