For FY 2018–19, 66% of all bikes in India were uninsured, a worryingly high percentage. IRDAI (Insurance Regulatory and Development Authority of India) has made new bike insurance mandatory for all new two-wheelers due to the rising number of bikes, accidents, and uninsured two-wheelers on the road.#
Why are five years of bike insurance required?
When you purchase a new bike, you must have bike insurance for five years (5-year Third-party Plan + 1-year Own Damage Plan or 5-year Third-Party Plan). This rule is per the insurance regulator’s guidelines, which took effect on August 1st, 2020. *
Various Two-Wheeler Insurance Options
The following are the main categories of motorbike insurance plans offered in India.
Third-party liability bike insurance
This policy only covers third-party liabilities, such as unintentional third-party untimely passing away, injuries, or property damage. This policy’s primary flaw is not covering your damage (damage to your bike). Additionally, a Third-party Liability plan cannot be customised.*
Comprehensive Bike Insurance
The regulator does not require bike owners to purchase a comprehensive policy. However, choosing this plan makes more sense because it provides damage protection and third-party two-wheeler liability coverage. This plan can also be modified with add-ons. Factor these into your decision when you are getting new bike insurance. *
How does two-wheeler insurance for five years work?
A short-term policy’s coverage is comparable to that of five-year bike insurance. Five years of third-party liability insurance and a year’s worth of comprehensive bike insurance are included.
The policy price and the bike insurance plan length are the main variations in this case. Therefore, a long-term strategy is better than a short-term one.
How is the NCB on a 5-year policy determined?*
Be aware that your bike insurance policy’s Own Damage (OD) portion is the only one where the NCB will be relevant. Since only a 1-year OD plan is required, the NCB calculations are comparable to those for an annual package policy.*
What Advantages Does The Five-Year Bike Insurance Policy Provide?
The advantages of a long-term first-party bike insurance policy are listed below.
Low premium
A long-term policy’s annual premium is always less than a short-term policy’s. Long-term policies are thus less expensive. You also receive continuous, 5-year third-party liability coverage and short-term OD coverage.
NCB
The Own Damage Policy is where this is more important. Your OD policy will be heavily concessioned when you don’t file claims. If you don’t file a claim for five straight policy years, you’ll receive a 50% concession.*
No bike insurance challans
Riding a bike without insurance in India is illegal, and you will be fined. A challan will be used to represent this.
Continuous protection
Continuous bike insurance protection is essential when making a bike insurance claim to ensure financial security related to bike damage and injuries. You may be liable for money if the bike is damaged while the insurance is not in effect. Your insurance company cannot assist you if you don’t ensure continuous coverage.
* Standard T&C Apply
# Visit the official website of IRDAI for further details.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
