Two Wheeler insurance is also known as Bike insurance cover provides protection for all types of two wheelers – motor cycle, scooter, moped and three wheeler vehicles for disabled persons. The policy covers all uses both personal and commercial. Side car attached to the two wheelers is also covered.

This insurance policy covers third party liability due to use of the vehicle and loss or damage to the vehicle.

There are two types of policies – Third party insurance and Comprehensive Insurance Policy

Third party insurance policy covers legal liability of the insured towards death, injury to persons and damage to property of the third party. This cover is a must and minimum as per the Motor Vehicles Act for using any vehicle in a public place. This is also known as ‘Act only’ Insurance or Liability only cover.

Comprehensive insurance policy covers the damage or loss to the vehicle due to accident, theft, fire or natural disaster, in addition to the third party liabilities.

Motor Vehicle insurance for Third party liability is compulsory as per the Indian Motor Vehicles law. If the car is used with no insurance (after expiry), then the law is violated resulting in fines and punishment. Private car insurance financially protects you from unforeseen accidents.

The vehicle whose insurance has expired needs to be inspected. The insurance company’s official will inspect the vehicle and certify whether the vehicle is fit for renewal. If found fit, the insurance can be renewed by submitting RC copy and expiring insurance policy copy.

If the vehicle is not found to be fit, then the vehicle is to be repaired for pre-existing damages and brought again for inspection for renewal.

If car insurance has been expired for more than 90 days, then no-claim bonus benefit cannot be claimed

The renewal process can be initiated by calling us, as vehicle inspection is to be done. The premium has to be paid, before vehicle inspection. Hence, please call us for priority support.

Yes, if car insurance expiry is less than 90 days ago.

By quoting the existing policy number, and paying the renewal premium through debit / credit / net banking. If there is any change in existing details, the same is to be entered, before making the payment.

If the policy is to be renewed online with the same insurer, it is very easy as the insurer will have all the details of the vehicle including and claim history, if any. The NCB details are also available with them. Hence, no document is required. The policy number is to be entered as it enables the site to list all details. If any information or details are to be changed, the same is to be done and confirmed for correctness for policy renewal. By paying through debit card / credit card / net banking, the policy will be generated and printed online including Certificate of Insurance.

However, for car insurance renewal online with other insurers, there is no need to submit any documents. The policy can be directly bought online by providing inputs such as  Car make & model number, Car RTO registration number, and Previous policy expiry details.

If the policy is renewed with other insurers offline, then Registration Certificate (RC) copy and existing insurance policy renewal notice showing the NCB eligibility are to be given along with the proposal form.

Yes. IDV is the current market value of the vehicle and is compensated to the policyholder in case of total loss of vehicle. The IDV is calculated as the manufacturer’s listed selling price minus the depreciation. As the age of the vehicle increases, the value of the vehicle gets depreciated, year-on-year basis, and results in reduced IDV.

The following is the standard depreciation schedule used by insurance companies:

Some insurers reward prompt payments with a maximum discount that is levied on your policy at renewal. For regular renewals with the same insurer before the policy expires, loyalty discount is given by some insurers.

The main benefit of timely renewal is the NCB discount which can go up to 50%.

NCB discount is given if the policy is renewed within the grace period of 90 days. Post the grace period (90 days specially allowed for renewal of an expired policy), the No Claims Bonus (NCB) discount is denied by all insurers

NCB discount can be availed with new insurer. The proof of the NCB can be claimed by submitting the renewal notice from the current insurer.

There are two types of policies – Third party insurance and Comprehensive Insurance Policy

Third party insurance policy covers legal liability of the insured towards death, injury to persons and damage to property of the third party. This cover is a must and minimum as per the Motor Vehicles Act for using any car in a public place. This is also known as ‘Act only’ Insurance or Liability only cover.

The Comprehensive policy covers damage to the insured vehicle in addition to the third party insurance.

IDV is the Insured Declared Value of the vehicle. It is the sum insured fixed at the commencement date of the policy and normally filled by the proposer in the proposal form. It is the amount which the insurer will pay at the time of claim, if the vehicle is lost or stolen or damaged beyond repair.

IDV reflects the market value of the car and is calculated on the basis of the listed selling price of the manufacturer and adjusted as per the standard depreciation rates. It is to be noted that IDV is calculated only for the Comprehensive Insurance and not for Third Party Insurance cover. IDV will decrease with the increase in the age of the vehicle.

Insurance company gives a discount on the Own Damage section premium for a claim free year to incentive accident free driving. This is called No Claim Bonus. The discount starts at 20% and is cumulative. The discount increases with every claim free year. The maximum NCB is 50% and results in substantial saving on Own Damage premium.

NCB can be availed when policy is renewed before the expiry date. The benefit can also be availed if the policy is renewed 90 days onwards from the date of expiry. After this date, NCB cannot be claimed.

Normally, the car dealer will arrange for the insurance for your new car. Insurance is mandatory for vehicle registration under the Motor Vehicles Act. Even the car dealer offers the choice of insurers.

Due to some reasons, if the insurance is to be purchased online, the information on the new car like Engine capacity, Engine number and chassis number is required. In addition, the details like CC, make, model and manufacturing year of the car, purchaser's address, the value of the vehicle etc. have to be filled up.

However, it is recommended to keep details of your previous expired insurance policy (if NCB is to be claimed) and Registration Certificate of the car handy, to buy online insurance or renew the policy.

It is a temporary document that acts as a proof of insurance of the vehicle. It is valid for 60 days and is replaced by the policy document. Earlier, the car dealer or the insurance official used to issue cover note as the policy could not be issued immediately. Nowadays, cover notes are rarely used.

The premium for your car insurance is calculated on different factors for the Own Damage cover (Comprehensive cover) and the Third party cover.

• Engine CC – Engine Cubic Capacity of the car is one of the factors for the rating of Own Damage and Third Party Insurance Premium
• The IDV (Insured Declared Value) of the car (the value of your car that will be compensated in case of theft or total damage)
• Manufacturing Year – This is to decide whether comprehensive cover can be given or not. Many insurance companies do not give Own Damage cover for vehicles more than 7 years old
• Your geographical location – According to India Motor Tariff, India is divided into 2 zones
  • Zone A – It includes cities like Ahmedabad, Mumbai, Delhi, Kolkata, and Chennai
  • Zone B – The rest of the country. The premium varies for each zone and more for Zone A
• The applicable No Claim Bonus, accumulated over claim free years
• Any add-on benefits opted like Personal Accident cover etc.

Add-on covers provide additional protection or extra benefits / less deduction when a claim is preferred. These require extra premium to be paid and are optional.

Zero Depreciation cover is an absolute must have for all new or relatively new cars. This is also known as Bumper-to-Bumper cover or Nil Depreciation cover. It does not take into account depreciation on car parts to be replaced in a claim.

Electrical or non electrical extra – This cover is for the insurance of extra items fitted in the car. This is part of the Own Damage section of the Comprehensive Policy.

Personal Accident insurance – The PA insurance is available for the Insured while driving the car, passengers traveling and paid driver.

Other add-on covers are the Invoice Cover and Roadside Assistance cover.

The main discount is the No Claim Bonus (NCB) which has been explained earlier. This forms the main benefit in saving the premium.

Membership Discount – Discount is given if the insured is the member of recognised Automobile Association of their respective region. For example, a vehicle owner in Chennai should be a member of the Automobile Association of Southern India to avail of this discount.

Loyalty Discount – Some insurers give discounts to the insured for their continuous renewal.

Occupational Discount – Some insurers give discounts for professionals as they are deemed to be safe drivers.

Installation of anti-theft and safety devices – Discount is given as this decreases the risk of theft.

Voluntary Higher Deductible – Car insurance is subject to an excess, over and above which only a claim can be preferred. If the proposer is willing to bear additional amount in a claim, then a voluntary deductible discount is given.

The new car owner should avail of the Nil Depreciation add-on cover to avoid unnecessary high repair payment due to depreciation in case of a claim.

Minor damages normally require a small amount to be spent on repair and replacements. It is difficult to decide what a minor damage is. It is important to note that when a claim is made, the benefit of No Claim Bonus (NCB) is lost. The accumulated NCB is lost, if even a single claim is made, how so small the damage should be. Hence, the comparison of claims amount should be with the NCB amount being affected.

If the expenses for damage repairs are way too high, then it is better to make a claim and lose the NCB discount.

The value of the car decreases once the vehicle is taken out of the showroom. The less value is due to notional loss of market value, as the vehicle is already registered. The depreciation is the main factor to determine the IDV (Insured Declared Value). The rate of depreciation applicable for vehicles aged up to 6 months is 5%. Hence, the new car value is less than the original by 5%.

Moreover, the price paid includes registration charges, insurance and service charges, which are exclusive of the showroom price.

It is necessary to know the reasons for the intention to cancel the policy. Driving on the road without an insurance policy is against Motor Vehicles Act and attracts fines and penalties. It is mandatory to have third party insurance policy. On the sale of a car, normally car insurance policy is transferred to the buyer.

So, if a comprehensive policy is not required, at least third party insurance policy is a must.

The insurance can be availed by submitting the sale letter from the seller (Form 29 & Form 30) and previous insurance policy details.

There are two options.

1. Buyer can get the policy transferred in his name by informing the insurance company in writing. The insurance company will confirm the name change by an endorsement.
2. The seller can cancel the policy and get a refund of premium for the remaining period of the policy provided there is no claim. The buyer will purchase a fresh policy. The insurance company will cancel the policy only on submission of necessary documents for ownership transfer and also a copy of the new policy for the vehicle. The NCB will remain with the seller and can be availed if the new vehicle is bought.

CNG or LPG kit is insured separately. Hence, the same is to be declared while taking the policy. If these are fitted during the currency of the policy, it changes the fuel type and risk nature. The insurance company is to be informed with the updated registration certificate to get an endorsement for the inclusion of the kit.

The Private car insurance policy does not cover:-

• Wear and tear of the car and the parts
• Loss or damage or liability when the driver is without a valid licence
• Loss or damage or liability when the driver is under the influence of drugs, alcohol etc.
• Loss or damage to the engine due to oil leakage
• Loss or damage or liability when the policy is not in force