Scooters are one of the popular vehicles on Indian roads. These two-wheelers are affordable to own and help you quickly zip through the jam-packed streets with ease. Now, it is mandatory for all motorists in India to buy at least a basic third-party insurance for their vehicle before taking it out on the roads. Not having this minimum insurance on your vehicle can land you in legal and financial trouble. So, if you are planning to buy your very first scooter, read on for an overview of what you need to know about two-wheeler insurance.
Types of coverage
When buying insurance for your scooter, there are two main types of policies you can choose from:
- Third-party two-wheeler insurance
This is the most basic form of insurance required by you as the owner of a scooter. Third-party insurance keeps you protected from third-party financial and legal liabilities if an accident occurs. You do not receive any compensation for your own vehicle’s damages.
- Comprehensive two-wheeler insurance
As the name suggests, comprehensive two-wheeler insurance offers a greater extent of coverage to the policyholder. You are covered against third-party liabilities and own damages in an accident, damages due to man-made disasters, losses due to natural disasters, and theft. If you opt in for comprehensive two-wheeler insurance, you can further customize your coverage with the help of add-ons. Add-ons come at an extra cost, but they can truly help create an insurance policy that is perfectly suited to your needs. Some of the add-ons that might benefit your scooter insurance policy are zero depreciation cover, no-claim bonus protection, and return to invoice cover.
Factors that influence two-wheeler insurance premium
The premium that is charged for your two-wheeler insurance policy will be calculated based on several factors such as the type of policy you choose, cost of the add-ons, vehicle model, engine cubic capacity, date and place of registration, year of manufacture, and insured declared value (IDV) among other things. Your insurer will also take into consideration any modifications done or accessories that have been fitted.
The cost of the premium should never be sole deciding factor when choosing a two-wheeler insurance policy. It is important to look for good coverage too as the cheapest plan may not always be the best. Never buy your scooter insurance policy as a mere formality – buy a good plan that will cover you sufficiently if things go wrong.
What is IDV?
IDV stands for ‘insured declared value’ and is one of the key aspects of your two-wheeler insurance policy. Unfortunately, very few motorists actually understand the importance of IDV in insurance. The IDV is essentially the value that you get paid if your scooter suffers from total loss due to theft or irreparable damages in an accident. The IDV is usually kept at the manufacturer’s current market estimate of your scooter’s worth (listed sale price minus any depreciation) and can be modified as per requirement. A higher IDV will result in a higher premium and vice versa. Be sure to set the IDV carefully; take professional help from an insurance consultant if you are unsure.
Exclusions to note
Finally, all two-wheeler insurance plans have exclusions to the coverage they provide. For instance, you cannot make a claim for accidents that are the result of you being intoxicated or driving over the speed limit. Also, your claims may get rejected if your driving licence is invalid, you were riding without a helmet, or your scooter was being used by someone else at the time of the accident. There may be more exclusions that can vary slightly between insurers – do ask your insurance company to provide you with a detailed listed of what they will not cover.
We hope that this article will prove helpful in bettering your knowledge of scooter insurance. Make sure to always ride with your helmet on. Take care.