Two-Wheeler Insurance

Two-wheeler is a vehicle specific insurance. Two-wheeler insurance in India provides coverage for motorcycles, scooters, and mopeds, and offers protection options similar to car insurance.

The main types of policies available are:

Third-party liability insurance: This is mandatory by law and covers damages or injuries caused by your two-wheeler to another person, their vehicle, or property. It does not cover damages to your own vehicle. 5-year third-party insurance premium for new two-wheelers (mandatory) in India is paid as a single lump sum at the time of purchase, and the amount depends on the engine capacity of your vehicle.
Comprehensive insurance: This policy covers both third-party liabilities and damages to your own two-wheeler due to accidents, theft, fire, natural disasters (like floods, earthquakes, cyclones), and man-made incidents (such as riots or vandalism). It also typically includes a personal accident cover for the owner-driver, usually up to ₹15 lakhs.
Standalone own-damage insurance: This covers only damages to your own two-wheeler from accidents, theft, fire, or natural/man-made disasters, but does not include third-party liability.

Common inclusions in two-wheeler insurance policies:

Accidental damages to your vehicle
Theft of the vehicle
Fire and explosion
Natural disasters (floods, earthquakes, etc.)
Man-made disasters (riots, strikes, etc.)
Third-party liabilities (injury, death, or property damage to others)
Personal accident covers for the owner-driver

Optional add-ons (for extra premium) may include:

Zero depreciation cover
Engine protection
Roadside assistance
Return to invoice
Consumables cover
Passenger/pillion rider cover
No Claim Bonus (NCB) protection

Legal requirement: At least third-party insurance is compulsory for all two-wheelers in India under the Motor Vehicles Act.

Exclusions (what is not covered) typically include:

Normal wear and tear
Mechanical or electrical breakdowns
Damage when riding under the influence or without a valid license
Damage outside the geographical area specified in the policy

Electric two-wheelers and mopeds are also covered under these policies.

Eligibility criteria

Age: The applicant must be above 18 years old.
Citizenship: The applicant should be a citizen of India.
Ownership: The applicant must own a two-wheeler and possess its Registration Certificate (RC).
Valid Driving License: A valid driver’s license is required to be eligible for two-wheeler insurance.
All types of two-wheelers—including motorcycles, scooters, mopeds, and electric bikes—are eligible for insurance coverage as long as they are registered for use on public roads.
The vehicle must have a valid Registration Certificate (RC) issued by the relevant Regional Transport Office (RTO).
Third-party liability insurance is mandatory for every two-wheeler plying on public roads, regardless of make, model, or type.
The insurance policy must correspond to the specific vehicle’s registration number and details (such as engine and chassis number).
Personal accident cover for the owner-driver is typically included with the policy.

Features Of Two -Wheeler Insurance

Mandatory third-partyliability cover: Legally required under the Motor Vehicles Act, 1988, this covers injury, death, or property damage caused to third parties by your vehicle.
Comprehensive coverage: Protects against both third-party liabilities and own vehicle damages due to accidents, theft, fire, natural disasters (like floods, earthquakes, cyclones), and man-made events (such as riots, vandalism, strikes).
Personal accident cover: Provides compensation (typically up to ₹15 lakhs) for the owner-driver in case of accidental death or permanent disability.
Add-on covers: Optional benefits such as zero depreciation, engine protection, roadside assistance, return to invoice, NCB (No Claim Bonus) protection, and pillion rider cover can be purchased for enhanced protection.
Cashless repairs: Access to a network of cashless garages for repairs, reducing out-of-pocket expenses.
No Claim Bonus (NCB): Discount on renewal premiums for claim-free years, ranging from 20% to 50% depending on the number of claim-free years.
Financial protection: Shields you from major repair or replacement costs arising from unforeseen incidents, reducing financial stress.
Legal compliance: Ensures you avoid heavy penalties and legal issues by meeting statutory insurance requirements.
Coverage for all two-wheeler types: Applies to motorcycles, scooters, mopeds, and electric bikes as long as they are registered for road use.

Terms and conditions

Coverage:
- Third-party liability insurance is mandatory and covers injury, death, or property damage to third parties caused by your vehicle.
- Comprehensive insurance covers own vehicle damages (from accidents, theft, fire, natural and man-made disasters) in addition to third-party liabilities.
Personal Accident Cover: A government-mandated personal accident cover for the owner-driver must be purchased separately, offering compensation up to ₹15 lakhs for death or permanent disability, with specific payout percentages based on the type of injury.
Exclusions:
- Policies do not cover consequential loss, depreciation, wear and tear, mechanical or electrical breakdown, failures, or breakages.
- No compensation is paid for intentional self-injury, suicide, or accidents while under the influence of alcohol/drugs or without a valid driving license.
Depreciation: Claims for parts replaced are subject to depreciation rates based on the age of the vehicle and the type of parts (e.g., 50% for rubber/plastic parts, 30% for fiberglass, nil for glass).
Sum Insured/IDV: The Insured Declared Value (IDV) is the maximum amount payable in case of total loss or theft.
No Claim Bonus (NCB): Discounts on premium are available for claim-free years, ranging from 20% to 50% depending on the duration without claims.
Policy Cancellation: The policy can be cancelled by the insured at any time, provided no claim has been made during the policy period.
Renewal: Policies must be renewed before expiry to maintain coverage and benefits like NCB.
Geographical Limits: Coverage is valid only within the geographical area specified in the policy, usually within India.
Proof of Insurance: A valid Certificate of Insurance must be carried in the vehicle at all times as proof of coverage.

Scenarios where Insurance claim rejected

Expired Policy: If your insurance policy has lapsed or was not renewed before the incident, any claim will be rejected.
Incomplete or Incorrect Information: Providing false, incomplete, or inaccurate details—either about the accident or in your policy documents—can lead to claim denial.
No Coverage for Claimed Event: If you claim for an event not covered by your policy (e.g., own damage under a third-party-only policy, or engine damage without the relevant add-on), the claim will be rejected.
Fraudulent or False Claims: Any attempt to make a fraudulent claim or provide misleading information will result in rejection and may also lead to legal action.
Driving Without a Valid License: If the rider did not have a valid driving license at the time of the accident, the claim is not entertained.

Drunk Driving or Influence of Intoxicants: Claims are denied if the accident occurred while riding under the influence of alcohol or drugs.
Delay in Intimation: Not informing the insurer about the accident within the stipulated time frame (usually 24–48 hours) can result in claim rejection.
Unauthorized Repairs: Getting the vehicle repaired before informing the insurer or without their approval can lead to denial, as it prevents proper assessment of damages.
Unapproved Modifications: Failing to inform the insurer about significant modifications or alterations to the vehicle may invalidate your claim.
Commercial Use of Private Vehicle: Using a privately insured two-wheeler for commercial purposes without the appropriate policy will result in claim denial.
Non-transfer of Policy: If you buy a used two-wheeler and do not transfer the insurance policy to your name, claims may be rejected.
Illegal Activities: Using the vehicle for illegal purposes at the time of the incident will void the claim.
Driving without a valid license: If the driver does not possess a valid driving license at the time of the accident, or if the license is not for the correct vehicle category, the claim will be denied.
Drunk driving: If the accident occurs while the driver is under the influence of alcohol or drugs, the insurance claim will be rejected.
Delay in informing the insurer: Not reporting the accident to the insurer within the stipulated time (usually 24–48 hours) can lead to claim rejection.
Misrepresentation or false information: Providing incorrect details about the accident, the driver, or the circumstances can result in denial of the claim.
Unauthorized use: Using the vehicle for purposes not covered by the policy (such as commercial use when insured for private use) will also lead to rejection.