Executive Summary: Third party insurance for two-wheelers is compulsory. There are many policies available in the market issued by private and public insurers. We have given details of three insurance policies here. Most policies offer similar terms and conditions. Choose the one that is the most appropriate and cost effective for you.
Third party insurance for two-wheelers is compulsory in India. It provides financial protection for the owner of the two-wheeler from unfortunate events such as accidents, damages or theft. You can buy it online or offline. There are two types of insurance –
Third Party Two Wheeler Insurance – The third party two-wheeler insurance policy covers loss or damage caused to a third party or their property because of your two-wheeler.
and
Comprehensive Two Wheeler Insurance – This policy provides coverage against damage for your two wheeler and legal liability.
Let us look at some of the policies available in the market and their features –
The following are details for a new Honda Activa 5G DLX (scooter) purchased in 2019 in Mumbai. The comparison is made for comprehensive insurance policies with Personal Accident cover-
Third Party Two Wheeler Insurance – The third party two-wheeler insurance policy covers loss or damage caused to a third party or their property because of your two-wheeler.
and
Comprehensive Two Wheeler Insurance – This policy provides coverage against damage for your two wheeler and legal liability.
Let us look at some of the policies available in the market and their features –
The following are details for a new Honda Activa 5G DLX (scooter) purchased in 2019 in Mumbai. The comparison is made for comprehensive insurance policies with Personal Accident cover-
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Details
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HDFC Ergo
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New India Assurance
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Bharti Axa
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Key Features
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It covers –
– Vehicle’s damage due to theft, accidents and natural calamities – Legal liability due to injury/death or property damage caused to a third party – Personal Accident cover for owner/rider |
It covers –
– Death or bodily injury to a third party person. – Damage to third party property up to Rs. 1,00,000 – Damage to the vehicle insured – Personal Accident cover for owner/rider |
It covers –
– Theft or accidental damage – Third Party Liability – Damage due to flood, lightning, terrorist activity and while vehicle is in transit. – Personal accident cover |
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Premium
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New Policy
5 years premium – ₹ 6,403 (incl. GST) Policy Renewal |
New Policy
5 years premium – ₹ 5,462 (incl. GST) This includes a Personal Accident cover of ₹ 15,00,000 |
New Policy
5 years premium – ₹ 3,285 Policy Renewal ₹ 752 for 1 year premium. Compensation up to ₹ 1,00,000 for third-party property damage for a Two-Wheeler |
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Insured Declared Value (IDV)
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Insured Declared Value (IDV) for 1st year – ₹ 43,315
IDV for 2nd year – ₹ 38,984 This amount can be claimed in case of total loss (e.g Theft of vehicle) |
IDV for first year –
₹ 47,836 |
Insured Declared Value (IDV) ₹ 43,400
The value depreciates by 5% to 50% over 5 years. |
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Exclusions
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– Damages occurred while racing, speed testing and riding without a valid license
– Usual wear and tear and maintenance – Damage due to war and nuclear risk – Loss of accessories alone |
– Damages occurred while riding without a valid license or under the influence of intoxicating substances.
– Usual wear and tear and maintenance – Damage due to war and civil war – Loss of accessories alone |
Damage due to wear and tear and riding under influence of alcohol or drugs.
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Analysis
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– No- claim discounts are available on renewal of policy, ranging from 20% to 50%,
– The Incurred Claims Ratio for motor insurance is 84.37% which is the highest among the three but the premium is on the higher side. |
– No- claim discounts are available on renewal of policy, ranging from 20% to 50%,
– Incurred Claims Ratio is 79.68% which is the lowest among the three. |
Incurred Claims Ratio is 81.74 and the premium is on the higher side.
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Please check all details with insurance company before buying the policy for most updated information
Some important points to consider while availing of an insurance policy for your two-wheeler –
- An insurance policy for a two-wheeler is a must as there is a penalty for riding one without a policy.
- There are different types of add-ons to the policy cover such as Zero Depreciation, Engine Protection, Passenger cover etc. Opt for them if they are suitable for you.
- Age of the vehicle, Sum assured amount, Type of vehicle and no claim bonus are some factors that influence the premium.
- To avail of a claim, register your claim immediately and make sure you have the policy, registration copy, license and repair estimate. If there has been theft, property damage or physical damage, file an FIR.
Hope this sheds some light on two-wheeler insurance and you are more prepared to go and buy your policy.
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