Bike Insurance, Scooter Insurance, Motorcycle Insurance refers to Two-Wheeler Insurance that covers the Insured against damages caused to and from your Two-Wheeler. Liability Policy (Third Party) Insurance is mandatory for all motor vehicles to be roadworthy.
Here is an example to understand the types of Two Wheeler Insurance Cover available in the market. Eg. In an event of a road accident, the parties involved are as follows:
In an event where an Insured Person with a Liability only (Third Party) Insurance Policy is held legally liable for injuries or damage done to a Third Party, then his/her insurance company indemnifies the insured person. A Liability only (Third Party) Insurance Cover for the expenses incurred as a result of the following reasons:
Following benefits are NOT Covered under the Stand alone Liability only (Third Party) Insurance Policy:
In order to cover the above and additional benefits, one needs to opt for a Package Policy (Compressive) Insurance Policy. Package policy covers loss or damage to the insured’s vehicle in addition to Liability (Third Party) cover.
Benefits of buying a Package Policy over a Liability only cover are as follows:
A package policy does not mean everything is covered; following are a few limitation and exclusion of Package Policy:
Pricing for Package Policies:
Package Policy Comprises of 2 Sections:
Own damage pricing varies on various factors such as IDV, Zone, Age of the Vehicle, Cubic Capacity of the Vehicle, Make, Model and Place of use of Vehicle, etc.
Zones – For the purpose of rating under this tariff the whole of India has been divided into the following zones depending upon the location of the office of registration of the vehicle concerned:
Zone A: Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, and Pune.
Zone B: Rest of India.
Discounts on Own Damage Portion of the Package Policy
There are 2 types of discounts under this section:
Depreciation on Parts for Partial Loss Claims
The following rates of depreciation shall apply for replacement of parts for partial loss claims in respect of all categories of vehicles / accessories.
AGE OF THE VEHICLE
|% OF DEPRECIATION|
|Not exceeding 6 months||Nil|
|Exceeding 6 months but not exceeding 1 year||5%|
|Exceeding 1 year but not exceeding 2 years||10%|
|Exceeding 2 years but not exceeding 3 years||15%|
|Exceeding 3 years but not exceeding 4 years||25%|
|Exceeding 4 years but not exceeding 5 years||35%|
|Exceeding 5 years but not exceeding 10 years||40%|
|Exceeding 10 years||50%|
A few key points to keep in mind while taking Package Policy Insurance:
About the Author:-
Pravin Duseja (Director of Hopebox Insurance Broking Pvt. Ltd.)
Hopebox Insurance Broking Pvt. Ltd. is a technology driven IRDA Licensed Insurance Broking & Advising Firm having its Operations Office in Nagpur with an aim of making Insurance easy and accessible with the help of technology. Pravin is one of the promoters of the company and has immense knowledge of the Insurance Industry. He is a Licensed IRDA Insurance Broker and expertises in advising the most appropriate Insurances cover to gain maximum benefit and is technically an Industrial Engineer.