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Term insurance is a type of insurance that is available for a defined period of time (number of years). The only difference between a term insurance policy and other policies is that a term insurance policy is comparatively economical as it does not have any cash value. The policy is applicable only if the insured dies within the timeframe during which the term insurance policy is in force.
Various insurance providers are offering term insurance policy that comes for various terms such as 10 years, 20 years, 30 years etc. The term insurance policy also has a built – in feature where it can get converted to permanent life insurance policies irrespective of the state of the health of the policy holder.
In case of the event death of the policy holder during the term of the policy, the beneficiaries can claim death benefits from the insurance company. And the beneficiary or nominee can be a family member.
To know more about various Insurance Policies in India – Click Here
Best Online Term Plans in India
Insurance companies offers online term insurance plans keeping the convenience of customers in mind. We have listed out some of the benefits of buying term insurance online:
- Buying term insurance online is more beneficial as one can benefit from lower policy cost as compared to buying it in traditional ways. From the insurer’s point of view, the involvement of life insurance agents and field officers, for online sales are limited. Hence, the insurance company passes on this benefit to the customer.
- Also, online process is the most convenient as one can operate from the convenience of their home and the application process also happens in a hassle-free manner.
- As the customers are purchasing the term insurance online, they are saved from the manipulation of the insurance agent or advisor.
- Irrespective of the way the customer chooses for purchasing the term plan, the customers are serviced in the same manner.
- In addition, online plans have low premiums such as
- There is no mediator in the deal
- The online buyer is considered to be a low – risk customers for the insurance company. The customers are expected to be educated, earning well, and is likely to have health insurance. In the event of an emergency, the customers would be in a position to reach a hospital on time and get access to quality medical facilities. These factors contribute towards the low risk and reduction premium.
Why should you buy Term Insurance?
Getting a Term Insurance is profitable as you can secure your family’s future and save them from crisis by financially securing them through a term plan.
In case of event of death of the policy holder occurs, the family of the insurer will get a lump sum amount as a death benefit which can bring financial stability to your family and pay off the liabilities.
Things to ponder over while buying online Term Insurance
Your online price quote depends on the basis of an assumption that the applicant carries normal risk in terms of health, occupation, and your family’s medical history. Once you have provided all the required documents, you may have to undergo a medical check – up to arrive at the actual policy cost. In case your medical test indicates that you are exposed to certain risk, the premium for your insurance may arise.
Internet has revolutionized our way of living and buying an online insurance plan is indeed a smart move. However, one should be careful and avoid policy lapse which can occur by missing premium payments as there will be no insurance agent to remind you of your premium payment due date. Another way to avoid the date of your premium payment is that you can send ECS (Electronic Clearing Service) mandate to your bank so that the premium amount is automatically deducted on the due date. Besides that you can also set up an alert on your mobile phone or computer is also a great way to remind yourself of the payment date.
Also, your insurance premium will be 25% to 30% higher if you are a smoker or use tobacco in any other form compared to people who does not use tobacco. Hence, make sure to mention this information in your application for insurance as at the time of the claim, if the insurer finds that the customer had concealed the information, the claim will be rejected. The insurer may also cancel the policy, as applicable.
Let us look at the table below where we have listed out the Term Insurance plans in India:
|Term Plans||Entry Age (Min / Max)||Maximum Maturity||Sum Assured (Minimum)||Claim Settlement Ratio (FY 2015 – 16)|
|Aegon life iTerm Insurance Plan||18 / 65 years||80 years||Rs. 2.5 Lakh||95.30%|
|Bajaj Allianz iSecure Online Term Plan||18 / 60 years||70 years||2.5 Lakh||91.30%|
|Canara HSBC OBC eSmart Term Plan||18 / 70 years||75 years||25 Lakh||92.99%|
|ICICI Pru iProtect Smart term Plan||18 / 65 years||75 years||Subject to Minimum Premium||96.20%|
|Kotak Preferred Term Plan||18 / 65 years||75 years||25 Lakh||94.08%|
|LIC eTerm Plan||18 / 60 years||75 years||25 Lacs||98.19%|
|Max Life Super Term Plan||18 / 60 years||75 years||25 Lacs||96.23%|
|PNB MetLife Mera Term Plan||18 / 65 years||75 years||10 Lacs||92.90%|
|SBI Life eShield Term Insurance Plan||18 / 65 years||70 years||20 Lacs||95.70%|
Features of Term Life Insurance Plans
Term Insurance Plan is designed in a way to secure your family’s core financial needs at the uncertain events such as death. In this scheme, the beneficiaries such as family / dependents of the life insured will get lump sum amount in case of death or critical illness. Such insurance plan can help your family to have a sound financial independence, even if you are not around.
Read below to know some of the key features of Term Life Insurance Plans:
- Term Life Plan comes with excellent tax benefits. Under the scheme, one can avail profitable tax benefits under section 80 C. Also, the premiums paid the premiums paid for the Critical Illness Benefit also qualify for a deduction under section 80 D.
- The minimum policy term of Life Term Plan is of 5 years and the maximum is of 25 years to whole life span for equated monthly premium payments. For single premium payment policies, the policy term is 5 to 15 years. One can opt for the term plan period they think works for them. Experts suggest that one should go for long term plan as the premium amount generally gets locked and the insured party gets to pay the same premium over the tenure of the term plan for the same amount of cover.
- One can also choose the payment options according to their convenience as Term Insurance policies offers flexible premium payment options. Where premiums can be limited pay, single pay or regular pay plans. And the subscriber who chooses limited or regular pay plans can pay their premium plans either monthly, quarterly, half – yearly or annually.
- The subscribers also get a choice to opt for the kind of plan they wish to take as per their convenience. They can choose either single or joint life plans as per their need. They can thus choose to extend coverage for dependent spouses or choose a plan exclusively for the breadwinner of the family.
- On the event of death of the policyholder during the policy term, the beneficiary will receive the amount chosen at the time of choosing the policy. And the amount that the beneficiary would receive depends on the term plan, with the amount increasing, decreasing or remaining the same irrespective of at what point of time of the policy, the policy holder’s death occurs.
- There are insurers who design plans in a way that they can offer survival benefits in the form of premium refunds on maturity, whereas a regular term insurance plan does not have any survival benefits.
- Also, upon maturity of the policy, surviving policy holder stand to receive benefits under a TROP (return the premium paid by the insured person over the tenure of the plan) policy only. And in case of a TROP policy, the policyholder will receive the premium amount paid over the policy tenure as one lump sum.
- Any interested policy holder can also opt for add – on features to their regular term insurance policy. And these add – on plans will push up the price of the premium being paid but provide additional benefits in case of accidental death, critical illness, total and permanent disability benefit etc.
How to choose a Term Insurance Plan
There are many options in front of an interested person, with different policy terms, benefits and sum assured amounts. To make the decision making easier, we have listed out some important points that you should keep in mind when looking for a term insurance plan:
- Make sure to check the reputation of the insurance company before picking an insurance policy. It is important to check the FICO score as term insurance policy is a long-term investment.
- One of the important factors before choosing a term insurance policy is the amount you would be paying in terms of premium for the protection offered.
- Inflation is another factor one should keep in mind before choosing a Term Insurance Plan. Term Insurance Policies are usually taken for 10 – 20 years, during which time inflation will grind down the value of the rupee, which will result into lower returns at the time of maturity. To offset this, consider companies that offer plans where the cover increases by 5% to 10% annually to keep in line with inflation.
- Also, make sure to compare policies online so that you can be clear of the plan you want to proceed with. The comparing facility is offered by the third – party financial websites, which are also free of cost.
- In case you are unable to choose the best policy for yourself, it is advisable to seek advice from an insurance advisor. This way you can pick up the right policy for yourself.
- The most important part of choosing the right policy for you is to read the terms and conditions properly before making a decision.
Documents Required for Term Insurance
Every insurance company ask for some documents at the time of applying for term insurance. Following is the list of documents you are required to provide when taking a term insurance plan.
- PAN (Permanent Account Number) card
- Proof of identity using documents like passport, Voter ID card, Aadhaar card, driving license, letter from a public servant or authority verifying identity.
- Proof of address with documents like utility bills (electricity, telephone) ration card, bank account statement, voter ID card or passport
- Proof of income with documents like Income tax returns, employer’s certificate, or Income Tax assessment order.
- Some recently clicked passport size photograph.
Eligibility Criteria for Term Insurance
Before taking up a Term Insurance policy, interested people are required to meet certain eligibility criteria which are as follows:
- To take the plan the policyholders are required to have attained 18 years or above that
- The maximum entry age will depend on the minimum tenure of the policy
- The maximum age at the time of maturity for these policies can be 75 years but this could change from one insurer to the next
- The minimum age for maturity will be determined based on the minimum age at entry and the minimum tenure offered
- The sum assured will also be a factor in calculating the eligibility as many policies have a fixed minimum sum assured
- This may not be mandatory; however, some insurer may ask you to undergo a medical checkup before taking up the policy.
India’s largest Life Insurer Company (LIC) has come up with a facility to link the Aadhaar and PAN Card with their Policies online. As per the Government Directive, the last date to link Aadhaar with the LIC is 31st December 2017. The IRDAI (Insurance Regulatory and Development Authority of India) had earlier said that it is mandatory to link your Aadhaar number with the Insurance Policies under the Prevention of Money Laundering (Maintenance of Records) Second Amendment Rules, 2017.
The Life Insurance India (LIC) has listed the steps or the procedure to link the Aadhaar and PAN online on its Official Website.
Procedure to Link Aadhaar and PAN Card with the Policies Online
- Make sure that you have your Aadhaar and PAN Card along with you with the other policies.
- Log in to the LIC’s Website: www.licindia.in
- On the LIC’s Homepage, you can see a section / link where it is displayed to link your Aadhaar and the PAN Card along with the Policies.
- Click on the click and the LIC will provide you a to-do checklist.
- Read the instructions carefully.
- Enter the mobile number that is registered with UIDAI.
- An OTP will be sent to the registered mobile number.
- If in case your Mobile Number is not updated with Aadhaar, then kindly contact the nearest LIC Branch Office for Aadhaar Linking.
- After you are done with the Checklist reading, click on the proceed button located at the bottom of the page.
- After the submission of all the details in the form, a message is received showing that you have successfully completed the registration for linkage.
After the verification of UIDAI, which issues the Aadhaar Card, a SMS or a confirmation e-mail is sent. The verification process will take few days to complete says the Insurer.
Do you have a habit of shopping frequently? Even when you don’t really require them? If that is the case, and if you are a habitual spender then Endowment Policies is the best option for you.
An Endowment Policy is a Life Insurance Policy which helps the Policyholder to save regularly for over a specific period of time. It is a traditional Insurance plan that pays out a lump sum amount of money after the event of the death of the Policyholder. The beneficiaries/ nominees of the life insured receive the benefit which is called as the death benefit. The Endowment plan also works the similar way, but also has some additional clause that states that the lump sum payment will be made to the Insurance holder if he or she survives till the end of the specified period of time known as the “maturity period”.
There are different Endowment Policies such as there are some companies that have a lump sum payout due to the critical illness or other Life-changing events.
Features of the Endowment Policies
- The sum assured in an Endowment Policy is payable either on the survival or on the death of the Policyholder.
- The Endowment Policies are available “With Profit” and “Without Profit” plans.
- The Endowment Policies offer bonuses for the full term, that is payable at the time of maturity or in the event of death.
- Premiums of the Endowment Policies can be limited to a shorter term or can be paid as a single premium.
- Premiums can be ceased on death or on expiry of the term, whichever is earlier.
Benefits of the Endowment Policies
- An Endowment Policy will provide an Insurance cover during the Policy term.
- This will also pay out a lump-sum amount at the end of the Policy term, which means the maturity of the Policy.
- The Policy serves as a dual purpose, which states that it not only works as an Insurance Policy but also serves as a Long-term Investment, with decent returns offer.
- The Endowment Policies come with tax benefits.
- In terms of investing, the Endowment Policies are quite safer than that of the other investments and offer returns which are close to those which are offered by the mutual funds.
- The Endowment Policies come with long-term savings.
- With an Endowment Policy, it provides an assured considerable amount after maturity.
- Most of the Endowment plans have the feature of extending will extend the Insurance coverage and promise the benefits after the maturity date. In some cases, the Life insured attains an age of 100.
- The Endowment Policies have the option of opting for additional riders which provide cover for specific illness, critical illness, disabilities etc.
How do the Endowment Policies Work
The Endowment Policies are not that different to that of the regular Insurance Policies. These Policies not only serve the Life Insurance but also help them save regularly for over a specific period of time. Once the Policy has been matured, the Policyholder will receive a lump sum maturity amount which can be utilized for meeting the financial needs like purchasing the property, children’s education, organizing a wedding or preparing for one’s retirement.
What is the need for the Endowment Policies
Plan before you invest in something. Go through the benefits, returns on the investment etc. must be compared against the other investments that help you to save on the tax, in addition, to give you huge returns. An Endowment Policy is far less risky than the mutual fund investment. It serves a dual benefit to a Policyholder that is, it provides tax saving investment with guaranteed returns at the end of the term and also provides a comprehensive Life Insurance cover.
Types of the Endowment Policies
There are three types of the Endowment Policies they are:
- Unit Linked Endowment- In this Endowment Policies, the Insurance premiums will be directed to the multiple units which are held under a specific investment fund which can be chosen by the Policyholders.
- Full Endowment- Under this Policy, the basic amount is ensured to be provided and will be equal to the death benefit, starting from the Policy.
- Low-Cost Endowment- This Endowment plan, has been introduced to provide accumulated funds which have to be paid after a specific period of time.
How to choose a correct Endowment Policy
Just like other Insurance plans, there are various types of Endowment Policies that are offered to the individuals. Individual needs, current Life stage, risk appetite are the few factors of the Endowment Policy. The premiums of the Endowment plans are pricier as compared to the term plans. Cost of the premium acts as a deciding factor. Besides that, there are some other factors that the Endowment Policy also provides such as the claim settlement ratio, financial status of the insurer etc. when choosing an Endowment Policy. Therefore, pick one which is simple and does not come with features and benefits which are difficult to comprehend and the details might get lost in the fine print.
The Documents that are required for an Endowment Policy:
- Fully filled application form/ Proposal form
- Recent passport size photograph
- Proof of Residence/ Address Proof
- Proof of Age
- Medical Reports (optional)
Endowment Policy Premium Calculator
With the help of an Endowment Policy premium calculator, you can receive the details like the Premium Amount, maturity value, surrender value, loan value and returns of the Policy. The Endowment Policy premium calculators will tell you to enter the information such as your age, Policy term and the amount of the sum assured. By the given information, the Endowment Policy premium calculator will compute the premium which you will require to pay toward the Endowment Policy.
Riders of the Endowment Policy
Most of the Endowment Policies, offer additional features to enhance the protection provided by the Policy. Some of the commonly available add-ons which are available with the Endowment Policies are:
- Critical illness
- Waiver of the premium
- Accidental death and dismemberment
- Accelerated sum assured
- Partial and permanent disability
- Hospital cash
Some of the Popular Endowment Plans in India
Reliance Endowment Plan
Lump sum assured plus bonuses available on maturity, subject to 100.1% of premiums.
- The death benefit of 10 times the annualized premium or base sum assured plus vested bonuses. Either that or 105% of all the premiums paid.
- Policy term from 10-25 years.
- Loan against the Policy is available.
LIC New Endowment Plan
Minimum assured sum of Rs 1, 00, 000.
- The death benefit no less than 105% of the total premiums paid.
- Death Benefit is higher of basic sum assured or 10 times the annualized premium.
- Accidental death and disability rider available.
A two-wheeler Insurance is an Insurance Policy that provides protection from any liability or damage to an Individual by your two-wheeler (which includes the moto-cycle, scooter, moped etc.) It products the vehicle and covers the cost of damage to your vehicle due to the unforeseen incidents such as accidents, man-made or natural calamities, theft etc.
Doing a two-wheeler Insurance is very mandatory in India for using the vehicle on the road. It comes from the General Insurance Industry. It is sanctioned and approved by the Insurance Regulatory Development Authority of India (IRDAI). This wraps the cost of the damages that have occurred due to the riots, strikes, explosions etc. The coverage that is offered to you depends completely on the Insurance Company.
The two-wheeler Insurance is mainly purchased for the private vehicles, commercial vehicles, and mixed vehicles. This insurance provides an excellent protection for all forms of the two-wheelers. You can also include some additional protection to keep your vehicle safe and secure.
The Insurance Companies are now offering the two-wheeler Insurance policies with coverage terms of 1, 2 and 3 years. Some of the Insurers also offer some special discounts on the long-term plans with a policy term of 2 or 3 years.
Eligibility to Get a Two-Wheeler Insurance in India
Any individual who has the permission to ride a two-wheeler is eligible to purchase an Insurance for two-wheelers. If you have a valid driving license, then you are eligible to purchase a policy. The policyholder has to be employed or self-employed in order to buy a policy. If you are 18 years or above then you can go for a two-wheeler Insurance. For that, you need to meet minimum income criteria which will be specified by your Insurance Company.
Mostly, it has been observed that the first two-wheeler insurance policy will be a part of your vehicle’s package and this has a validity of 1 year. You need to renew the two-wheeler insurance policy for subsequent years. It is because it is very compulsory to protect your vehicle with an Insurance when you want to ride on the road.
Why do You Require a Two-Wheeler Insurance Plan
Filing an Insurance for a two-wheeler has been made compulsory by law. This is done so as to maintain a safety and get a reliable coverage when the rider is held for any third-party liability.
- Riding a two-wheeler is mainly considered risky when compared with driving a car. This is because the bike does not give full protection and safety to the individual like how the car gives the body of the car.
- The two-wheelers are considered to be one of the most used modes of transport. A two-wheeler can be easily used on a daily basis. Therefore, purchasing a basic two-wheeler Insurance policy for your motorbike or scooter is very essential.
- With a two-wheeler insurance plan, you will just have to pay the premium. Paying a premium is quite cost-efficient as compared to bearing the costs of damage caused to your vehicle on your own. The insurance policy of your vehicle will also cover your legal liability when you meet with an accident.
- Buying a two-wheeler insurance is similar to that of buying a Helmet for using it while riding a bike or a scooter. It will keep you safe and ensure that you have a smooth riding experience.
- When using a two-wheeler, a roadside assistance is very much needed because, if in case you meet with an accident at any point in time. Like for an example: if you are planning to go on the bike through highways and you are unable to find a good two-wheeler service station, then at this point of time you can easily reach out to your Insurance Provider for quick roadside assistance. Through the company, you can contact a reliable vehicle repair dealer to get prompt towing services. Whether your motorbike has a breakdown or gets damaged in an accident, your vehicle will get towed and fixed in a reasonably short period depending upon the intensity of the damages.
- You can also use an alternate bike while your actual bike is getting fixed. The cost incurred on arranging this alternate two-wheeler is also done by the Insurance Policy. You can check this while purchasing your policy.
- In case you meet with an accident and the other party gets injured or his/her vehicle gets damaged then you will have to pay a heavy amount to cover the loss of the third-party. With a two-wheeler Insurance, you will also get a cover for both financial and legal liability for the third-party.
- If you take a rider or an additional plan with your basic two-wheeler insurance policy, then any damages caused by the rider will be covered by the additional plan.
- You will also receive a good coverage for the expenses incurred on the hospitalization and medical treatment. For some insurance plans, you will be required to take the rider to get a coverage.
- You can select the appropriate Insurance plan as per the requirement of the vehicle. There are different types of plans that are designed for each vehicle model, make the year of manufacture etc.
- Apart from the covering damage which is caused to your two-wheeled vehicle, the third party’s body and property will also get a personal accident cover with many two-wheeler insurance plans. The owner of the vehicle will also get a coverage where he/she when meeting with an accident while riding the vehicle. The policy will provide a certain amount of money as a part of this cover.
|Two wheeler Insurance provider||Cashless Network Garages||Third Party Insurance Cover||Personal Accident Coverage||Incurred Claim Ratio (Motor Insurance)||Policy Term||No Claim Bonus||Bike Insurance Online Renewal|
|Bajaj Allianz Two Wheeler Insurance||Available||Available||Coverage up to Rs.1 lakh for the owner-driver||72.07 %||1-3 years||No Claim Bonus (NCB) benefits||Available|
|Bharti AXA Two Wheeler Insurance||2,500+||Available||Available as an add-on cover for owner-driver and the co-passenger||91.49%||1-3 years||NCB of up to 50% and Up to 2.5% discount for installation of security devices||Available|
|HDFC ERGO Two Wheeler||4,800+||Available||Available for the owner-driver under comprehensive motor insurance||85.80%||1-3 years||Premium discount for long-term two-wheeler insurance plan||Available|
|Reliance Two Wheeler Insurance||430+||Available||Available as add-on coverage||87.30%||1 year||NCB benefits||Available|
|Liberty Videocon Two Wheeler Insurance||Available||Available||Available for the owner-driver||85.32%||1-3 years||Discounts at renewal and NCB benefits||Available|
|IFFCO Tokio Two Wheeler Insurance||Available||Available||Available||76.09 %||1-3 years||NCB benefits||Available|
|ICICI LOMBARD Two Wheeler Insurance||Available||Available||Available||80.28%||1-3 years||NCB benefits||Available|
Types of Two-Wheeler Insurance in India
The Insurance Companies offers a wide range of the Policies to suit different requirements. The owners of the two-wheeler vehicles can choose a policy that comes with their budget and requirements. The Insurers of India provides two types of Two-Wheeler Insurance, which we are going to talk about:
Liability Only Insurance
This insurance is mainly provided for the insurance coverage in case of the damage caused by the third party. Third party insurance is also mandatory in the book of law and all the two-wheelers are required to have this form of insurance.
This insurance covers the legal cost, arising out of the damage which includes personal injury, property damage or death to the third party due to the insured vehicle.
Along with the cost of damage coverage, most of the insurance companies also provide accidental coverage or accidental death cover to the owner of the insured vehicle. This is an additional benefit that is offered to the two-wheeler owners. This feature acts as an additional cover in the event the owner is injured, with the insurance company covering the cost up to a certain limit.
The liability only insurance policies provide a larger coverage to the third party and do not offer much in the protection of the two-wheeler or the rider. The premiums can be purchased from the leading Insurance Companies at an affordable rate. This cover can be purchased for a year and can be further renewed annually.
This type of insurance is available in all the two-wheeler insurance providers for both private and commercial vehicles. This is the basic type of vehicle insurance. Whether you have a carrier, goods-carrying vehicle or a passenger-carrying vehicle, you will be provided with a third-party liability under this plan. This will cover the bodily injury or death or damage to the third party. This plan can be taken by the owner of the two-wheeler or the lessee who plans for buying a two-wheeler.
Under this type of Insurance, the declared value is fixed according to the depreciation percentage that is mentioned in the showroom price list. This feature is applicable to a vehicle which is not older than 5 years. If the bike/ vehicle is older than 5 years then a declared value will be the present value in the market. This is applicable even for the outdated vehicle models that are not manufactured anymore in the market.
Under this Insurance plan, you will have to pay a service tax. There are certain exclusions as well and they include contractual liability and death caused by or while employing someone who is responsible for reimbursing money under the policy.
The Comprehensive Insurance provides coverage for third party liability as well as protection for the insured two-wheeler and rider. This insurance covers the damage to the vehicle that occurs due to the natural and man-made calamities.
This insurance type provides a complete protection in the event of an accident resulting in the partial or the total damage to the insured vehicle. It also covers the owner and the co-owner (add-on) through the personal accident cover. This plan is the smartest plan to invest in as this plan will minimize the costs as it covers many types of cover plans. Therefore, instead of investing in different types of covers at different points of life, you can simply take the Comprehensive Insurance plan and enjoy maximum benefits.
Comprehensive Vs Liability Cover
In the Comprehensive Insurance Cover, you will get the protection even when you are the one who is at fault that means whether the damage is caused by you or not you will get the protection. You will receive the coverage for the damages caused to you, your vehicle, third-party and the vehicle for the third-party. Whereas, the Liability Cover provides protection only for the injury or death caused to the third-party and damage and the loss of two-wheeler of the third party. It does not consider the damage caused to your own two-wheeler. It only covers the damages that are caused to the other vehicles.
Through a comprehensive cover, you will receive a liability coverage along with the coverage for your own property. In case of the liability cover, the monthly expenses will be lesser as compared to the monthly expenses incurred on comprehensive insurance. With the comprehensive cover, you need to pay a higher amount.
Both the covers perform differently and either any one of it can be beneficial depending on your circumstances.
If you have taken a loan to purchase any two-wheeler then considering EMIs are necessary while choosing for the insurance. If your EMI Payments are still running then the comprehensive insurance will stay ideal. This is because you will need the money to pay our EMIs. On the other hand, if you have completely paid your two-wheeler loan and you have a good handful amount of money then you can definitely go for the Liability Only Cover. This is because the monthly expenses for both liability cover and comprehensive cover will be completely different. There will be a huge gap in the prices. Therefore, if you are able to pay for the bike repairs along with the additional funds that you have accumulated, then you can purchase a basic liability coverage.
If your usage level of two-wheeler is very limited due to various reasons such as dependence on the Office Transport then you can go for liability insurance.
Is it Mandatory to have a Two-Wheeler Insurance in India?
Long-Term Two Wheeler Insurance
The Two-Wheeler Insurance is monitored by the Insurance Act, Motor Vehicles Act, Transfer of Property Act as well as the Insurance Contracts that are controlled by the Indian Contract Act. These acts have made it compulsory to have a two-wheeler insurance. With a Two-Wheeler Insurance Policy, you will also get a coverage from the Motor Vehicles Act for several costs that you may incur when you meet with an accident.
These costs include the repairs for the vehicle after the road-collision, flood, theft, natural calamities, strike, riot etc. The coverage for own damage is optional.
A two-wheeler vehicle has the potential to cause damage to others. Even when the engine is not on, if it falls on someone suddenly then it can cause severe damage. Therefore, it is very important to get a Two-Wheeler Insurance. Even if you have leased a motor-bike then it is necessary to take an Insurance Policy in your name.
Some of the two-wheeler damages that are not included in the Basic Insurance Policy includes legal liability to the rider who is paid, wear and tear of the motorbike, or scooter or loss of accessories, riding the bike after consuming alcohol etc. The laws have mandated that you should get at least a basic insurance policy for using a two-wheeler on the road. For an extensive coverage, you can go for Comprehensive Insurance.
Safety Measures and Precautions for the Bikers
We all know that riding a bike is very fun and enjoyable, but you need to take a few precautions while riding a two-wheeler. These precautions are very simple in nature. You just have to follow simple traffic laws and maintain a good road sense.
The motorbikes and scooters do not have any safety features like the car. Therefore, it is very necessary to follow the general safety guidelines.
The Helmet is a Must
Whenever you ride a motorbike or a scooter, ensure that you are wearing a helmet with a good eye-wear and a face shield. Riding without a helmet can cause serious head injury. Your eyes will be secured when you wear a helmet. This acts as a safeguard while riding. Your helmet needs a good visor to keep you safe from the dust, fog, rain and thus will prevent you from any type of accident.
Following the Traffic – Rules
Following the traffic-rules is a must. You should keep in mind to ride according to your skill level. Never go over speed while driving a bike. Controlling your bike is very important when you are riding on a curvy road or while trying to get out of the traffic jam. You can develop your riding skills and then increase your speed. You can also get trained or take classes on advanced training classes to have a proper riding experience.
Avoid Rash Riding
You should avoid riding fast as this can cause accidents and severe damage. Applying sudden brakes is not good when you are forced to bring your speed down. Shifting gears and accelerating unevenly can hamper your riding experience and can affect your bike as well.
Stay Away from the Distractions while Driving
While riding a bike, you must always keep yourself away from distractions. You should avoid listening to music on your earphones. Avoid taking calls while riding a motorbike or scooter.
Checking the Bike’s Condition
Whenever you start to ride your bike you must check all the parts of the motor-vehicles. Make sure that you check the tyres, headlights, indicators, tail-light, coolant-fluids etc. You also need to check if there are any bulges or cracks in your tire. You should also check if there are any wears and tears in your bike parts. Check the bike mirrors, rear brakes, and front brakes etc. The brakes are needed to be firm and stable. Also, do check the horn before you start a ride.
Other important precautions and instructions that need to be taken care of are: riding the bike according to the weather, wear a good footwear while driving, maintain a good space while riding a bike, make sure you ride only when you are sober etc.
The two-wheeler insurance is offered by many Insurance Companies for different tenures based on your preferences and premium payment ability. You can also decide your policy term and get a guaranteed bike insurance cover package. Most of the Insurance Companies offer the two-wheeler insurance for a period of 2 to 3 years or above.
If you are taking such policies, then you need to renew the insurance policy only once in 2 or 3 years. This is very beneficial as you don’t have to remember that you need to renew your policy on a regular basis. You don’t have to go through the renewal process again and again. You can buy most of these long-term bike insurance policies online where you have to choose only the policy period and then renew after the policy period is completed.
Benefits of the Long-Term Bike Insurance
The advantages that can be availed by the Long-Term Bike Insurance are as follows:
- In the Long-Term Bike Insurance you can avoid the third-party premium payment hikes that are made on the regular basis.
- You will receive a coverage for up to 3 years which is a long period. You don’t have to worry if your premium renewal deadline is over. You just have to renew it only once.
- Having a Long-Term Insurance Policy for Two-Wheeler helps you to stay away from the service taxes. This is very helpful as these will not incur any additional expenses during the policy period.
- If you are making a claim during your long-term policy period, then your no-claim bonus (NCB) will decrease. It will not become 0. On the other hand, if you make a claim with a normal two-wheeler Insurance policy, then your NCB will be non-applicable.
- The third-party liability premium will not get modified during the long-term policy period.
- You can also get the benefit of discounted premium when you take a two-wheeler insurance policy for a longer period.
- If you are filing for a theft claim or a total loss claim, you can get a refund for your policy for the remaining policy period. This completely depends on the Insurance Companies.
- When you renew your Long-Term Policy, you will receive an additional NCB Benefit.
- When the regular insurance policy lapses, the insurance companies tend to make it mandatory to examine the two-wheeler before providing a new policy or renewing the existing one. This complex process can be avoided if you choose to take the long-term policy plan.
- You have to keep in mind that, if the premium prices go up in the market, then the long-term policies will force you to pay higher-prices.
Features and Benefits of Two-Wheeler Insurance
Protects the Vehicles
The most basic benefit of the Two-Wheeler Insurance is that it protects the vehicles from damage due to accidents be it large or small. The insurances will take care of all the expenses at a minimal cost.
The insurance provides an excellent protection for the vehicle after it is damaged due to accident or any natural or man-made calamity. This provides both coverages for both partial loss and complete loss of the vehicle. Be it a commercial or personal vehicle, the Insurance will take care of the expenses and provide extensive protection. When you incur with extremely high costs on getting the vehicle’s damages fixed, the two-wheeler insurance is the most viable resolution.
For bad roads and lack of driving ability, the insurance is non-applicable.
Covers Third-Party Liability
If the insured vehicle is involved in an accident, then the cost incurred due to the damage of the third-party will be covered by the Insurance Company.
The two-wheeler insurance provides an excellent support for the damage caused by the third-party’s property. This can be the vehicle, or the vehicle accessories etc. If the external party’s property is destroyed due to your negligence or due to fire or any other fault, then this can be incurred by the Third-Party Property Cover. This cover is mainly designed for the damage caused to the property. It does not include the injury caused by the third-party.
Covers Vehicular Damage
The Vehicular damage is mainly caused due to the natural or man-made calamities as stated in the Policy document. The damage will be covered by the Insurance Company, be it partial loss or complete loss of the vehicles due to such events. Through this, you will get special prices for repairs which you can claim when you visit any of these garages. The Insurance Company has tie-ups with different garages. Therefore, you need to find out the specific garages and then choose from any one of them when you need any help.
Cashless Garage Facility
If in case your vehicles are suffering from a breakdown or machinery issue then the insurers have provided with cashless garage facilities at various locations. Through these facilities, you can rely on the Insurance Company to settle and repair the bills once the work is done.
The garages can’t be removed and added to the cashless garage list over a period. You need to check the list before you go to the repair services. The policyholder will tell you to fill up a certain form for availing the cashless garage (repair) facility. He/she need to complete certain formalities before the repairs are done. The cashless-garage provides an excellent repair service as compared to the normal garage.
To avail the cashless garage facility, you need to follow few steps
- If your vehicle has met with an accident and you have to get your two-wheeler repaired then you need to make a call to your Insurance Provider.
- Next depending on your location, the company will recommend the list of cashless garages near you. Choose the desired garage location and your vehicle will be fully examined. After examining and negotiating, the cost of the repairs will be decided and will be sent to the customer or the garage.
- The amount will be transferred to the garage directly by the Insurer. The two-wheeler will be required to pay only the compulsory.
Provides Insurance for the Riders
Many Two-Wheeler Insurance Policies provides coverage to the rider even if he/she is not a policyholder. If the rider is met with an accident then he/she will receive a compensation from the Insurance Policy for meeting the medical and hospitalization expenses.
The Bike Insurance provides additional coverage for various purposes like accidental death, permanent or temporarily disability caused by the accident, personal accident cover, zero depreciation cover etc. To enjoy the additional coverage you need to pay an additional premium to the insurer.
Provides Peace of Mind
The two-wheeler insurance policy will help you to control your stress if you met with an Accident. All you have to do is file a claim and the company will take care of everything else. You don’t have to worry about anything regarding your medical and repair expenses.
If you do not make any claim with your Insurance Policy, then the NCB will get accumulated. Through NCB, you will receive excellent discounts on your premiums. There are many Insurance Companies that help you earn NCB for several years. Some companies tend to set a limit of 5 years for earning a NCB.
Instant Access to the Policy
Every Insurance Companies offers an immediate access to your Insurance policy whenever you require. If in case, you met with an accident or your two-wheeler is damaged due to calamity or for some other reason, then you can inform the Insurance Company and you will get the coverage after your vehicle is examined.
The claim settlement process is taken care by the Insurance Advisor and you can access your policy offline as well as online.
Easy Transfer of NCB
If you are planning to replace your old scooter or motor-bike into a new one then at that time you can also shift your NCB as well. You can move your Insurance Policy from your existing to the new one and the then obtain a no-claims certificate from your insurer. You can make use of this certificate when you are planning to purchase a new vehicle then you obtain a discount price for your new vehicle’s insurance premium. You also get a refund option as well. This can be transferred if the policy holder is the same. It can be moved from one Insurance Company to another.
Premiums Charged for Two-Wheeler Insurance Costs
When you are getting a Two-Wheeler Insurance, there are premiums which are determined by different factors such as the model, make of bike, geographic location, engine capacity, the age of the vehicle owner, year of manufacture of the vehicle, no-claim bonus etc. Premium calculators are available for calculating the premiums. These are available on the third-party sites and Official websites of the insurers.
Enhanced or Additional Coverage
The Two-Wheeler Insurance offers enhanced and additional coverage if you pay an additional premium. One of the additional covers is the Zero Depreciation Cover in which you do not have to worry about the depreciation factor while filing the claim. Different Insurance Companies offer the riders for the accidental benefit, permanent disability benefit etc. when you pay additional amount.
Two-Wheeler Insurance Quote
If you want to get a quote on your two-wheeler insurance, then you have to visit any of the Two-Wheeler Insurance Company or Third-Party Websites and enter the key details of your vehicle. You will have to enter your bike registration number, your name, your e-mail address, and your mobile number. Then you can click the feature of getting a quote. If you are renewing the policy, then you have to enter the existing policy number and then request a quote.
Two-Wheeler Insurance Status
You can also track the status of your Two-Wheeler Insurance. All have to do is visit the official website of your insurer or by visiting their office. If you met with an accident and you are unaware of the status of your vehicles Insurance Policy, then you will have to visit the website of Insurance Regulatory and Development Authority of India (IRDAI). Here you get all the information regarding the accident and registration number and the Insurance status of the vehicle.
Bumper-To-Bumper Bike Insurance
The Bumper-to-Bumper Bike Insurance is otherwise called as Zero Depreciation Cover. This cover is available for the two-wheelers. This is an add-on cover. In this type of Insurance Cover, you can claim for the different issues like the wear and tear of the vehicle etc. as the wear and tear are not included in the Insurance Policy. The Insurance Company will pay the complete amount without deducting any depreciation.
This cover will provide you with coverage for many circumstances that can happen while riding. The protection offered by this cover is pretty higher compared to other Insurance Covers. The returns earned by the Insurance Company is low and the premiums for this plan are higher. This insurance policy does not cover depreciation for the battery or the tyres of the vehicle. The application process is similar to that of the Regular Bike Insurance.
How to Apply for a Two-Wheeler Insurance in India
Applying for a two-wheeler Insurance offers you two-modes: Offline and Online.
If you want to apply for a two-wheeler insurance offline, then you need to visit an Insurance Agent or advisor who will guide you by bringing relevant forms to you. Getting an Insurance Policy offline is quite expensive because you will have to renewal pay for a certain percentage of your premium to the agent. Hence, the premiums are higher when you apply for it offline.
- At Insurer’s Office/Branch
You will have to visit the Two-Wheeler’s Insurance Office and meet a representative. The representative will provide you an application form to fill. Fill in the form with the details. If you have any queries related to the application form then you can ask for instant support in the office.
- Through Insurance Agent
Here you can contact an Insurance Agent from the company you want and can take his/her help to complete the application process. You will have to pay a certain amount as commission to the agent.
- Through a Bank or Other Third-Party Dealer
There are few banks that help people while applying for a two-wheeler insurance. You can visit the bank branch or the official website of the bank and ask for support. You can also get the assistance of a third-party dealer that specializes in offering the insurance policies. You will have to visit the dealer’s office or branch for applying. There are some agents who also make visits to the customer’s residence to complete the application process.
If you are applying for a bike insurance online then, you have to visit the official website of the company. You can also apply to the third-party websites that sell insurance as well. When you go through an online process then you can start by getting a quote from different insurers instantly. Before you decide any insurer you have to make use of the online calculator to get a rough idea of how much premium you will have to pay. Then you need to file in the bike registration number, mobile number and e-mail address in the respective fields. Then you can click to buy online.
Process for Obtaining a Bike Insurance Policy
The process of getting a bike Insurance Policy is quite simple. It consists of limited paperwork and receives the policy is quick.
- Furnish the basic details such as name, mobile number, e-mail address and residential address.
- Provide the vehicle engine number, registration number and vehicle chassis number.
- If you are not aware of the bike registration number, then you can provide the bike manufacturer, registration year, model and variant.
- You can also compare the premium quotes and then select the insurer according to your payment ability.
How to Choose the Best Bike Insurance Plan in India
- Coverage Required
On the basis of your Policy premium and payment ability, it is necessary to choose your coverage. The coverage can be your coverage amount or coverage type. There are types of coverage that includes the liability-only coverage and comprehensive coverage. Depending on the usage of the vehicle, monthly expenses and existing liabilities you can choose an appropriate plan as per your requirement with right the coverage.
- The capacity of Bike
Always take a note of your Bike’s capacity when you are choosing a plan. When you provide the details of yours bike’s cubic capacity, you get the premium estimate. If the cubic capacity of the two-wheeler is high then the premium will also be high.
- Two-Wheeler Discount Details
When you will be applying for an Insurance Policy, the insurer will provide you a list of the discounts on your premiums. This will be entitled to certain bonuses with your plan. With respect to these details, you can choose an excellent plan.
All Types of Vehicles
%age of Discount on Damage Premium
No claim made or pending during the preceding full year of Insurance.
No claim made or pending during the preceding two consecutive years of Insurance.
No claim made or pending during the preceding three consecutive years of Insurance.
No claim made or pending during the preceding four consecutive years of Insurance.
No Claim made or pending during the preceding five consecutive years of Insurance.
- Zero-Depreciation Cover
When you receive a compensation on the damages of your vehicle or the injuries caused due to an accident or any other reason, the amount is given after deducting the standard depreciation amounts. Through the zero-depreciation cover, you will be able to receive a fill compensation amount. With the help of this cover, your several vehicle parts will be fixed without seeing the depreciation value of each of these parts. For this cover, you need to pay additional premiums.
Find Out Insurer’s Trustworthiness
Before selecting a two-wheeler insurance and an insurance plan, it is very necessary to check the Company’s Trustworthiness. If the company is reliable and competent enough then invest your money in the Insurance Plan. You can also check the claim statement ratio of the company by researching online. You need to make sure that the company has the competency to resolve your issues related to the vehicle damage.
Compare the Policies Online
There are many third-party websites that provide a clear comparison regarding the various insurance plans that are available in the market. You can even ask for the various quotes and then choose a required plan. You can also compare the compare the features that are offered by the different plans. You can also check if the policy is having different flexible offerings or not, which states that if the policy can be customized according to your specifications etc.
There are premium payment options available for the customers. These payment options are offered by different insurers and you can select the insurer that makes your payment process convenient. The common payment methods are NEFT, ECS, Standing Instruction, Debit Card, Credit card, Net Banking etc.
Reading Reviews and Complaints
If you are interested in any insurer, then make sure that you check their reviews and complaints written about the company. Doing this will give you a fair idea regarding the company.
Two-Wheeler Insurance Add-On Covers
The add-on covers are essential for a two-wheeler Insurance Cover. They offer protection from some common and uncommon types of covers. If you pay an extra-income, then you can get benefits on the add-on covers. Some of the common add-on covers that include the cover for the accessories, medical cover, and passenger cover and so on.
Personal Accident Cover for Pillion
This cover provides personal accident coverage for the pillion riders in case of an accident or any other circumstance that is mentioned in the policy document. This cover provides an insurance in the pillion rider’s partial or permanent disability or death while riding the insured vehicle. The amount that is claimed is completely dependent on the type of injury suffered by the pillion rider at that particular time.
Round the Clock Assistance
The cover provides round the clock support for the two-wheelers in the event of the breakdown or mechanical failure. The services that are offered in this cover are the towing facility in the vent of breakdown, accommodation benefit due to the vehicle being unfit to ride, emergency assistance, minor repairs at the site of the accident/breakdown etc.
With this cover you will get emergency assistance. Many of the insurers have toll-free numbers. You can call them and ask for the help, the team will rush to the accident spot or the breakdown venue. This cover provides towing help, repair services, negotiation of repair costs etc.
This provides coverage to any electrical and non-electrical accessories which are added to the two-wheeler. The insurance company will cover the cost of the replacement. When you are buying this cover, you need to specify the cost of the accessories.
Two-Wheeler Insurance Premium Calculator
As the insurance for every two-wheeler in made compulsory so it is essential to shop for the perfect policy that meets all their needs and also does not break the bank premium-wise at the top of the bike or scooter owner’s mind.
The Insurance Companies have introduced two-wheeler Insurance Premium Calculator, which allows the customer to ascertain the amount which they have to pay towards the insurance premium. The value of the insurance premium gets high every passing year which in result makes it very handy and helpful.
The premium calculators also allow the customers to get multiple quotes, enabling him to make an informed choice taking into account the cost of the policy as well as its features.
The calculator performs operates on a simple premise, where a certain information is inputted based on which the calculator will display the premium cost. Many of the Insurance Companies offer the Premium calculator service thus making it easy for the customers to access the information wherever they are:
A Premium Calculator comprises the following information:
- Make and Variant of the Two-Wheeler.
- Existing Policy Information (if already insured)
- Vehicle Registration Number
- Type of Policy (Liability Only/ Comprehensive)
Based on the above the information, the premium calculators will generate the information.
In case of the riders being added to the policy, the premium amount will increase commensurate with the rider premium to be paid.
Factors Affecting Two-Wheeler Insurance Premium
If you are planning on a Bike Insurance Plan, then the premium amount is something that most of the customers base their purchase on. The Insurance Companies issue premium quotes for liability as well as well as comprehensive insurance policies. There are certain factors that play a very vital role in the calculation of the final quote and insurance premium to be paid. Below are the five basic factors that affect the two-wheeler Insurance that the Insurance Companies take into account while calculating the premium quote:
Whenever you select an Insurance plan, always go for the most economical Insurance premium. To find a good premium, you must be aware of the aspects that can determine it. Some of the common aspects include fuel type, manufacturing year, the model of the bike, a location of the registration, making of two-wheeler etc.
This includes the type of the two-wheeler, model, class, make, cubic capacity and fuel type that will define your premium. If your motorcycle has a higher cubic capacity or a larger displacement engine, then you have to pay a higher amount of premium. Like for an example: if you have a motorsport bike, then your premium will be high.
This determines the area where you reside, this will determine your two-wheeler premium. Like in case, if you are living in a rural area, then your premiums will be comparatively lesser.
Type of Coverage
If you take the third-party cover which is the most basic cover then your coverage type will be reasonably priced. If you want an extensive cover, then you can opt for a comprehensive cover. In this case, the premium will be higher. If you go for lower coverage, then your premiums will be high and if go for a higher coverage then your premiums will go up.
The factors that are associated with the motorbike rider play a very important role in determining the rider’s premium. Some of the factors that are assessed include the gender, age, riding history, riding experience. If you have many years of riding experience plus if you are young in age then you can enjoy a low premium. If you have maintained a good riding record, then also you will be able to enjoy a low premium.
Past Insurance Record and History
In this case, your premiums will be displayed on the basis of your previous insurance record. If you have made any claims with your previous two-wheeler insurer then you will be charged a higher premium. It is because filing many claims can result that you have a very faulty driving record.
Two-Wheeler Insurance Policy Rates
The Insurance and Regulatory and Development of India has introduced Insurance rates for both automobiles as well as the Two-Wheelers which came into an effect on 1st April 2017. Due to the increment in the rates, many of the insurance companies rushed to renew their policies before the above-mentioned date. The hikes in the premium prices were quite high.
Vehicle Engine Capacity
Old Premium Rate- 1st April 2016
Revised Premium Rate w.e.f- 1st April 2017
Up to 75 CC
76 CC to 150 CC
151 CC to 350 CC
Above 350 CC
The individuals who own two-wheelers that are below 750 CC, are not charged with any premium. This is partly done in order to revise the commission assigned to the agents.
Bike Insurance Transfer
If you are planning to sell your bike, then it is required to transfer your bike insurance ownership as well. This is an important activity that has to be followed. For this, you need to first inform your insurer and then obtain a no-claims certificate from the company if you have not made any claim.
When is the Transfer Required
It is essential to transfer your bike ownership to another person. Doing this can avoid a lot of problems and issues in future.
How to Transfer Bike Insurance
For transferring a bike insurance, you need to provide your current policy number, the name of the insurer, your name, your address, mobile number, e-mail address, vehicle model, vehicle make etc. Before you make any transfer you need to request for a vehicle inspection.
Ownership: You need to provide the following documents and certificates: Registration Certificate (RC), Pollution under Control Certificate (PUC), Tax Certificate, Completed Form 28 for shifting of the bike ownership, Completed Form 29 that is No Objection Certificate (NOC), Completed Form 30 that should be filed as a request for shifting or reporting of transfer of ownership.
Insurance Policy: You must inform the Regional Transport Office (RTO) about the transfer of policy. If you have earned any no-claims bonus with your old bike then it will be retained in your policy. This will not be transferred to the new owner of the bike. You can also transfer your bonus when you take a new insurance policy. The new buyer of your old bike has to stay connected with the insurer and has to provide the basic personal information for the plan that you has earlier.
What is the Need for the Transfer Bike Insurance Policy
The Transfer Bike Insurance Policy is very important, as it offers a wide range of benefits and also helps to avoid unnecessary complications related to the external party’s claim settlements which are not associated with you.
Freedom from Future Liabilities
This helps to stay away from the unnecessary unwanted liabilities in the future. If the new owner of your two-wheeler meets with an accident or causes any damage. If that person files a third-party claim on the bikes’ policy then you would still be a policyholder (if the insurance has not been transferred). Then you have to run around here and there for settling down the claim effectively in your favor. This is why it is very important to transfer your policy if you are selling your bike.
Retention of NCB
This will help you in keeping the no-claim bonus that you have earned over the years. This feature denotes that you have maintained a good and secure driving experience record. Unless you officially transfer your bike insurance, you will never be able to enjoy the bonuses rightly.
The Validity of the Two-wheeler Insurance Policy Renewal
You can renew or extend your two-wheeler insurance policy before the policy expires. You can do this either online or by visiting the branch. You need to renew your policy within 90 days. If you fail to do so then your No-Claim Bonus will be lost.
You can Renew Your Policy in Different Ways
Branch Renewal: If you want to renew your motorbike insurance policy, then one of the basic and simplest ways is to visit the Insurer’s branch. This is a conventional way to get your policy renewed. In this procedure, a representative of the branch will assist you in completing the renewal procedure successfully. He/she will ask you to furnish the required documents that are required in the procedure. You can make your premium payment through cash or any other method according to your preference.
Using Apps: For two-wheeler insurance, several apps are launched which works best on the smartphones for Android and iOS. This will help you to renew your policy conveniently. This facility can only be used in the smartphones. The payment is done only through the online payment channel.
Online: You can also visit the official website of your motorbike insurer or a third-party website that deals with the insurance and also completes the renewal process quickly by making the premium payments online. The payment option includes debit/credit card payment, Net Banking, ECS, Standing Instruction etc.
Mode: The renewal mode can be of any payment mode. The payment mode is completing on the basis or according to the way you purchase your policy. Your NCB Benefit will be according to the tariff or according to your renewal option.
Frequency: You can choose your renewal frequency according to your preferences. If you are going for a regular policy period, then you will have to renew once a year. If you are planning to choose a long-term Insurance Team, then you need to renew only once in 2 or 3 years.
The Exclusions in the Insurance Policy for Two-Wheelers
The exclusions completely depend on the two-wheeler insurer.
General and Specific Exclusions:
- Wars, uprising and Nuclear Risks.
- Damage caused by a person who does not have a license.
- Wear and tear of two-wheeler parts or electrical issue in any of the parts.
- Any claim that has resulted from a contractual liability.
- Riding after consuming alcohol or any other substance.
- Damages caused when you have been riding outside specific geographical limits. Like in case you use two-wheelers in the countries like Bangladesh, Nepal, Sri Lanka, Bhutan, and the Maldives. You will not get any Insurance coverage.
- Damages caused to the tires or tubes without an accident.
- Depreciation of a vehicle
- Use of vehicle for illegal purpose
- Limited liability for own damages
Documents Required While Applying for or Buying a Two-Wheeler Insurance Policy
If you want to purchase an e-bike insurance policy, most of the insurance companies ask for the documents to submit. Most of the two-wheelers insurers believe in zero-documentation or zero-paperwork when you make the first purchase. Some of the insurers may ask you to submit the relevant documents while renewing the policy.
The documents that are required while applying or buying a two-wheeler insurance policy:
- Copy of the registration certificate of the vehicle.
- Driving License
- Police Report
- Repair Bills
- Claim Form.
What to do When the Two-Wheeler Policy is Expired
There can be several causes behind the expiration of your Two-Wheeler Insurance Policy. It can be if you have missed your deadline date for renewing the policy. You just need to follow simple steps to get it done.
- Firstly, you will have to compare the various plans on the third-party websites of insurers. You can even compare multiple quotes together.
- Then you need to fill in the bike registration number and some other important information. There is no paperwork process.
- You may receive discounts on the premiums.
- Then make the online payment and you get your new policy immediately.
Best Two-Wheeler Insurance Plans and Companies in India
Best Companies for Two-Wheeler Insurance Plans
Plans Offered by the Company
ICICI Lombard Two Wheeler Insurance
ICICI Lombard Bank Insurance
Bajaj Allianz Two Wheeler Insurance
Bajaj Allianz Bank Insurance
Reliance General Two-Wheeler Insurance
Reliance General Insurance Bike Insurance
HDFC ERGO Two-Wheeler Insurance
HDFC ERGO Bike Insurance
New India Assurance
New India Assurance Bike Insurance
IFFCO Tokio Bike Insurance
Bharti AXA Bike Insurance
SBI Two-Wheeler Insurance
SBI Bank Insurance
National Insurance Two-Wheeler Insurance
National Insurance Bike Insurance
Shriram Two-Wheeler Insurance
Shriram Bike Insurance
How to Make a Claim Under a Bike Insurance Policy
Below is the process of making a claim:
- First of all register your claim with your two-wheeler insurer. If your bike has been stolen then file or lodge a police complaint first.
- You can also go for cashless claim option as well.
- Next thing to do is get your two-wheeler repaired. You can get your bike towed or you can take your bike to the garage.
- You can now monitor your claim status on a regular basis by checking the official website of the company and by calling them.
For making a third-party claim you need to submit the following documents:
- Police FIR Copy
- Copy of your policy
- Your claim form signed by you.
- Copy of your driving license.
- Copy of your Vehicle’s RC
- For the company registered bikes, a stamp paper is needed for the documents.
If you want to make a theft-claim then you need to submit the following documents:
- Copy of your driving license
- Form 28, 29 and 30 signed by your financier and by you.
- Your original policy document
- Your original FIR Copy.
- Your warranty card, service booklet or keys
- Letter of subrogation
- NOC from the financier.
- Your former insurance policy information
- A copy of a letter that is written to the RTO regarding the theft with a request to make the vehicle “NON-USE”.
- A claim-discharge voucher with a Revenue-Stamp.
For making an accident claim, you need to submit the following documents:
- Copy of your driving license
- Your Insurance Policy or Cover Note Copy
- A copy of your Driving License
- Copy of your tax receipt or registration book
- Your original repair invoice for cashless garage repairs and payment receipt for normal garage repairs.
- Police Panchnama or FIR
- Your claims discharge voucher and satisfaction voucher
You can claim your two-wheeler Insurance Claim either through offline or online mode. The claim can be either cashless or non-cashless.
Time Taken to Process the Claim
It usually takes 30 days to claim for two-wheeler insurance effectively. There are certain cases where the insurers needs to invest more time in the additional investigation. In such cases, the company usually takes a time period of 6 months to complete the whole procedure. If in case the claim is not settled within the time period of 6 months, then the insurer will be required to pay an interest on the due amount (for delay payment).
If you met with an accident or if you had a vehicle break-down then you need to make a cashless claim. The whole procedure is very simple. Below are the steps for making a cashless-claim.
- Firstly, select any of the garage from the list of the cashless garage network
- Then call your insurer and inform them about the claim. Most of the insurers have their toll-free numbers. After providing them the information you will get a claim registration number.
- Now you have to give your two-wheeler for repair with relevant documents including the registration certificate, your original claim form, KYC Documents, copy of the FIR or Police Report etc.
- Now download your policy claims for your bike-insurance by going to the insurance company’s website.
- The surveyor then checks all the documents and checks whether it is proper or not. Then the surveyor will send your vehicle’s repair work order to the garage that you have chosen.
- After the repair work is done, the surveyor will perform an exam again.
- When the insurer receives the repair bills, the company will release the delivery order.
- After that, a cashless garage will release your car promptly. The garage will ask the policy holder for a satisfaction voucher that must be signed by him or her. This is mainly the last step for the cashless claim process.
Non-Cashless Claim Reimbursement Claim
Under the Non-Cashless Claim plan, you will have to make the payment for your vehicle first. It is completely opposite to the cashless claim. Here you will have to file a claim against your own damages as well as the third-party damages. Under this type of claim, your insurer will not pay for your damages in the beginning. You will have to make the payment from your side first. Once all the repairs are done, the garage that you have chosen will forward the complete bill along with the repair expenses to your insurer. Your Insurance Company will then pay you back to reimburse your expenses.
Process for making a Non-Cashless Claim:
Under this claim, it is not mandatory to select an authorized garage that comes under your Insurance Company’s garage network. You can take your vehicle to any garage.
- In the garage, your vehicle will be inspected and a rough estimate of the repair expenses will be given to you.
- You will have to pay the full repair cost along with your actual deductible. After the repairs are completely done, the insurance company will subtract the deductible and give you back the complete repairs costs to you.
Claim Settlement Ratio
The Claim Settlement Ratio refers to the percentage of the total number of claims settled and resolved in a certain year to the claims that have been received by an insurer in a year. It can be for a year or a different period of time. This ratio plays a very vital role in defining the performance of an Insurance company. If the Insurer’s Claim Ratio is high then the reliability of the company is also high. Therefore, the customer must always check the claim settlement ratio before selecting a policy.
The formula for calculating the Claim Settlement Ratio is:
Claim Settlement Process for Two-Wheeler Insurance
The complete process is very simple and fast. Most of the insurer have a fixed method to resolve the claim filed by the policy holder. For an effective claim settlement process below are the following process:
- You should have a valid license.
- You should always be aware of the traffic rules and regulations.
- Must have a proper knowledge about the exclusions and inclusions of your bike insurance policy.
- You must read your policy document very carefully.
What is a Zero Depreciation Cover for a Bike Insurance
A two-wheeler’s value generally depreciates on yearly basis. This indicates that as your vehicle ages, your vehicle’s value also falls down. A zero-depreciation cover or a Nil-Depreciation cover is an additional cover that provides protection against the depreciation of your vehicle. When you file a claim for your bike’s insurance policy, your bike’s depreciation value will not be deducted from your actual cover.
Age of the Vehicle
Rate of the Depreciation Applicable
Less than 6 months
Above 6 months but less than 1 year
Above 1 year but less than 2 years
Above 2 years but less than 3 years
Above 3 years but less than 4 years
Above 4 years but less than 5 years.
Above 5 years but less than 10 year
More than 10 years
Benefits of Zero Depreciation Cover
- You can have a peace of mind with this coverage. This does not reduce your cover unnecessarily by subtracting your depreciation cover.
- This cover will also minimize your pocket expenses even.
- With this cover, the depreciation will not be taken into account even for your vehicle’s insured part.
- This cover provides complete security with this plan.
- It enhances the basic insurance cover.
- It is great for anyone who has sports motorbike, whose bike has highly priced spare parts, who resides in the accident-prone areas.
Inclusions of the Zero Depreciation Cover
- This is given when you get a new policy and when you are renewing an existing policy.
- For new bikes and bike which are up to 2 years old. This can be used once during the entire year or for up to 2 claims during the policy term. This completely depends on your bike insurer.
- This includes the coverage of the fiberglass parts, nylon, rubber, and plastic parts.
Exclusions of the Zero Depreciation Cover
- Tish cover is not valid for every motorbike model. You can get the complete information by reading the policy documents.
- This cover does not include any wear and tear on the vehicle parts.
- This cover does not include uninsured dangers.
- This cover does not include gas kits, bi-fuel kit, and gas kits as they are uninsured.
- If any damage results from the mechanical breakdown, this is not included on the cover.
Constructive Total Loss
A Constructive Total Loss is a situation where the repair expenses for a particular vehicle is higher than the present value of the vehicle. Therefore, if the repair costs are extremely high i.e 75% then it is not said as the total loss but a constructive total loss. This process is not sensible at all to retrieve the vehicle’s condition. In case of a total loss, the vehicle will have repair costs of more than 75%as per the vehicle’s IDV.
The IDV is otherwise called as Insured Declared Value is the highest amount that can be claimed under vehicle insurance policy for reimbursing the costs that result from an accident or theft.
Bike Insurance without any Inspection
If you are planning to get your vehicle inspected or renew your motorbike policy then you need to avoid to go for online purchase. When you renew your policy online you don’t have to go for any physical inspection. The documentation process is completely simple and minimal. If you are going for an offline policy renewal process, then you will be asked to get your vehicle inspected before the renewal is done. You just have to click a few buttons and the renewal is done within few minutes.
When you are doing an online renewal, you need to note that the policy will make active only after 3 days after you buy the policy. Therefore, if anything happens to you while riding within these 3 days then it will not be covered by this policy.
Two-Wheeler Insurance Calculator
The two-wheeler insurance calculator is completely available online. You can find this tool at any Insurance Company’s official website or on the third party website.
All you have to do is enter your vehicle registration number and mention whether the policy is expired or not. You will then receive multiple numbers of quotes along with the information such as the name of the insurer. The IDV for the first year, premiums for the 1-year plan, 2-year plan, and 3-year plan.
In other websites, you will have to enter the brand of your bike and the year of the registration. You will have to choose your city from the list. Along with that, you will also get your premium quote details.
Discount for Members of the Automobile Association of India
In India, there are many automobile associations, riding associations and biking associations. Associating with these associations will provide you discounts on your bike insurance. There are also women-biker clubs in India. Some of the famous bike riding associations are Harley Owners Group (H.O.G), India Bull Riders, and Rolling Wheels Biker Club (RWBC), Group of Delhi Super bikers (G.O.D.S) etc.
Value of Accessories- How to Calculate
Under the Bike Insurance, it is very much necessary to know the right value of the accessories before you file a claim. To get an accurate value, you can browse through various motorbike websites etc. You can also ask the motorbike accessory dealers and experts for the inputs and about the values. You need to make sure that the accessories are reliable and precise.
Next, add up all the accessories values. If you have installed a number of accessories on your motor bike this can cost you up high. In this case, you can negotiate with your insurance company to fix a decent value so that your bike accessories are safely secured. The bike accessories are quite expensive so it’s better that you take a good coverage of this parts.
If you have installed the anti-theft devices in your bike then, ask your insurer to give you a good coverage and the insurer will most likely to agree to your amount as the risk involved is low due to the added security is given to your bike.
If you have already received a policy document for your bike insurance then you can compare the accessory value along with the coverage mentioned in your existing policy document. If the difference between both the amounts is vast, (if the current accessory coverage is lesser than that of the recently calculated value then you should contact your insurer and make the required changes to the accessory coverage.
Penalty Charges for Not Carrying a Two-Wheeler Insurance:
If you do not carry your Two-Wheeler Insurance while riding then you will be charged the penalty. The Central and the State Motor Vehicle has made mandatory rules.
Some of the Penalty Charges include:
- A penalty of Rs 1000 will be charged.
- You may be imprisoned for 3 months
- Your Bike registration may be suspended.
- Diving License may get suspended
How GST Affects the Bike Insurance
The new GST Rate for these premiums is 18% as per the new GST update. The GST has been introduced in order to eliminate the double taxation. The bike insurance policyholders will be impacted negatively as the GST on the premiums has been increased from 15% to 18%. This can lead to the purchase new policies and renewal of the existing policies.
Premium Rates 2016 Vs 2017
The Insurance Regulatory and Development Authority of India has raised the premiums for two-wheeler insurance as well as Automobile Insurance from April 2017.
Two-Wheeler Insurance Premium
Below 75 CC
Higher than 75 CC but not higher than 150 CC
Higher than 150 CC but not higher than 350 CC
Higher than 350 CC
How are the Premium Rates Set
The premium rates for the Insurance are set by checking and scanning the policy holder’s profile details. The details include age, income, vehicle model and making, your residential location, usage of your two-wheeler, marital status, your credit history, riding history and riding experience etc.
Renewing Process of the Expired Two-Wheeler Insurance Policy:
If you have made an Insurance Policy it is very necessary to renew the policy as well in order to avoid the penalty charges. Most of the motorcycle insurance policies are renewable annually, which says that the vehicle owners have to keep a track of their policy dates and renew before it expires. You can also renew the lapsed insurance policy.
The multi-year two-wheeler insurance policies have a tenure up to 3 years. You can also go for a long-term Insurance Policy as well.
In both the cases, the policy has to be renewed or a fresh policy has to be purchased from another insurer. Most of the Insurance Companies are also providing the online facility for renewal of the bike policies. Reminders are given so as to avoid the deadline dates. Making the renewal online is a few-minute step and an efficient way to stay insured.
The customers can choose any coverage type depending on their requirements. Information is even provided such as the existing policy number, policy type, motor-vehicle registration number and the owner details. These details are required for the purpose of verification and authentication.
The premium can be paid through net banking, credit/debit cards etc. Once you are done with the payment, an acknowledgment is sent to the policy holder for the future use. The new policy can be saved and downloaded or printed, provided the owner a ready reference to the terms, if required.
An additional hard copy is also mailed to the policy holder by the Insurance Company.
Bike Insurance Inclusions and Exclusions
The customers who are purchasing a bike insurance have to go through the policy document before they make any purchase. Knowing well about your Insurance Policy will not only keep you aware of the coverage but can help you save the time and effort. Below are the some of the important inclusions and exclusions of a two-wheeler Insurance Policy.
- Legal Third Party Liability
Due to any Legal Financial Issues or Losses incurred by a policyholder due to the death of the third party or any injuries happened to the third party or any losses suffered by the third party will be covered by the Bike Insurance Policy.
- Natural Calamities
If your two-wheeler is damaged due to any natural calamities such as earthquakes, floods, landslides, storms, rain, firing, lightening, bomb explosions etc. then such damages can be covered by the two-wheeler Insurance Policy.
- Man-made Calamities
If your bike is damaged due to certain manmade problems such as strikes, accidents, burglary, riots, etc. then your bike insurance policy will cover the cost of repairs and the replacement of the parts. Even the damages that are caused to the vehicle will be covered by the Bike Insurance.
- Personal Accident Coverage
The chances of meeting with accidents are very much higher in the bikes (two-wheelers) than compared to the four-wheelers. Having a two-wheeler insurance plan will assure you that you are financially covered so that the medical expenses are not too big to bear. There are some bike insurance policies that cover a pillion in some cases.
- Driving without a Driving License
Carrying a Driving License is a must when you are driving a motor-bike. All the insurance companies guide you through this instruction. Claims will not be entertained if an individual does not possess a valid driving license.
- Driving Under Influence
Driving under an Influence such as narcotics, alcohol or drugs is considered as a serious offense. No claims are entertained if a bike is damaged due to this particular reason.
- Wear and Tear
The Bike Insurance who provide the coverage for the vehicles damaged due to wear and tear, general aging, electrical or mechanical failure and breakdown.
In case there are any damages or loss of accessories due to burglary, robbery or house-breaking etc. the two-wheeler insurance policy will not cover the costs of the repairs or the replacements unless the vehicle is not stolen at the same time.Other Exclusions
Other conditions where the Bike Insurance does not offer any coverage includes contractual liability, damage to the tubes and tires unless they are damaged due to an accident, damaged caused to the two-wheeler vehicle if it is used outside the geographical boundaries of India, nuclear risks, war etc.
The Best Online Two-Wheeler Insurance Policies (Compare and Choose)
Given below are the best and most popular Two-Wheeler Insurance Policies that are currently available:
Bajaj Allianz Bike Insurance
This insurance policy offers the customers a comprehensive coverage at an affordable cost. The customers can either go for an annual policy or a 3-year policy. The individual can also enjoy instant claims and a transfer up to 50% of the No-Claim Bonus from any other insurer. Overall it6 provides a hassle-free and a smooth service to the customers.
Tata AIG Bike Insurance
This is one of the largest insurers in India. This offers the customers a free vehicle pick-up in the event of an accident and provides a six-month guarantee for the accident repairs done at their network garages. In addition, they also assure a 7-day claim settlement and provide a complete protection in case of natural and manmade calamities.
ICICI Lombard Bike Insurance
The ICICI Lombard Bike Insurance provides service to its customer no matter where they are. It has over 2900 network garages across India. It provides premium discounts to the Automobile Association members and policy tenures up to 3 years. Offers a number of add-on covers at a nominal additional charge and vehicle security.
Buying a Bike Insurance Online
The Insurance Companies have introduced an online facility for buying two-wheeler Insurance Policies. Just a few click and the entire process is done online. The customers can take a look and choose on different policy types and scan through each policies features and benefits and submit the required documents and pay for the policy online. Buying a fresh policy can be done online by entering relevant information such as the vehicle registration number, owner’s details and any other information required by the insurer. The premium payment amount will be displayed on the screen and the customer will be provided with an option to choose the policy type and any add-on covers if required.
Important Notes on the Two-Wheeler Insurance Policy:
- You can check the status of your Insurance Policy by visiting the Official website of the respected Insurance Company or by contacting the branch and providing details such as the policy number, policy holder’s name etc.
- A fine or a penalty of Rs 1000 is charged if you are using an uninsured vehicle or if you’re insurance due date is passed.
- The two-wheeler insurance policy is valid for 1 year, 2 years and 3 years depending on the tenure of the selected policy.
- Your expired bike insurance policy can be renewed by choosing a bike insurance policy, having the vehicle inspected, filling in the form and paying the required premium.
- Anyone can buy a two-wheeler insurance. You can either buy it online or offline or for a vehicle that is not yours.
- For the modified vehicles which are used by the Handicapped person, a discount of 50% is applicable to the own-damage premiums, as offered by the Indian Insurers.
- The factors that impact the applicable 2 Wheeler Insurance premium amounts are Type of 2-wheeler, an age of the vehicle, the city where registered, coverage period, any applicable discounts.
- The factors that will affect or help my Two Wheeler Insurance Premium are: add-on covers take over the policy, whether you have taken a comprehensive cover or third party cover, vehicle’s cubic capacity (CC), vehicle model type, place of registration (Zona A/Zone B), age of vehicle, insured declared value (IDV) i.e the present value of the market.
- You are eligible to make a claim even if your policy has expired if the damage took place during the policy tenure.
- If you are planning to move to some other location in search of job or Marriage then your insurance policy remains more or less unaffected. All you have to do is to provide your Insurance Provider the complete details such as the details regarding your job, address, contact details etc. another thing that might change your Insurance Premium. The Insurance premiums are determined on the basis of the zone of the vehicle. All the major cities like Delhi, Mumbai, Hyderabad, Bangalore, and Chennai are denoted as the Zone “A” cities and the rest of the cities are denoted as Zone B. So, if you are moving from Zone B to Zone A, then your Insurance Premium is likely to get an increase.
- If you have a motorcycle insurance, you can add an endorsement to your car insurance policy. It has to be filed when any change is made in the policy. The endorsement document will provide you the basic protection when you make any changes and this document serves as proof. When you modify your policy terms due to certain reasons you will be required to make an endorsement. You will need to make an endorsement when you make any certain changes to your policy details such as the agreed value clause, change of vehicle, lease agreement, installation of the anti-theft device, when your two-wheeler is laid-up in the garage for repairs, change in hire purchase agreements, new discounts from automobile associations and additional discounts for modified bikes for handicapped or blind people.
- The documents that are required to get age discounts for your bike insurance are proof of date of birth, driving license, Voter ID or Passport. For occupation discounts you need to show the following documents: recent pay slips, offer letter from the employer, employment letter etc.
- You can procure a No-Claim Bonus on an expired policy within 90 days after your policy lapses. This bonus will not be given to you if you do not renew your bike insurance policy within 90 days after it expires.
A home is a place where one loves to live in. A home is something which is special to everyone on us. It is a place where one feels super comfortable. No money is better spent than what is invested in your home. Your home is one of the biggest and powerful investments that you would make it in your life and it is a bit natural that you would protect it. This is where the householder’s insurance will help you. They are like the angels that come from above to protect your shelter space. Thus, safeguarding your house from the unforced events becomes a priority and the best way through which it can be done is by securing the home with a Home Insurance.
A home insurance or Householder’s insurance is commonly defined as a type of Property Insurance that covers Private Homes security from different natural and unnatural cases like theft and robbery, fire attack damages of houses due to natural disasters like earth quake, cyclone etc.
It is a type of investment that you make for protecting your house from disasters and other causes. Insurance is meant to come in rescue in these types of calamity. It is a type of insurance policy that combines a variety of policies and liabilities that protects the houses.
Most of the home insurance policies include four essential types of coverage
- Coverage for the structure for your house
- Coverage for your personal belongings
- Liability Protection
- Additional living expenses if you are temporarily unable to live in your home because of an insured disaster.
The Structure of Your House
This type of policy helps to pay you to repair or reconstruct your home if it is damaged by fire, lightning, hurricane and other disasters listed in your policy. This policy will not pay for the damages like the earthquake, flood, disaster or routine wear, and tear.
When you purchase the structure of your House policy, make sure that you study the guidelines carefully. Make sure that you purchase enough of coverage to rebuild or reconstruct your home.
Some of the policies also cover the detached structures such as the garage, tool shed etc. This includes about 10 percent of the insurance on a home structure insurance policy.
Coverage for Your Personal Belongings
This policy covers up different products such as -furniture, clothes, sports items, utensils and other personal items that are destroyed or damaged by different insured disasters like fire, lightning, hurricanes etc. which are listed in your policy. This policy covers up around 50-70 percent of the insurance of the structure of the home. The best way to know that whether your policy envelops enough of coverage of home structure is to conduct a Home Inventory.
A home inventory ensures that homeowners are sufficiently prepared, in terms of their insurance coverage and deal with the potential Losses. A detailed list of all the items that are destroyed, damaged or stolen is required for an insurance claim. Proper paper documentation work ensures a faster and smoother claim process.
Insurance Institute of India offers a Home Inventory tool that lets you create, maintain a photo home inventory which you can save it in the cloud safely.
The personal coverage loans include the items stored off premises- this means that you are covered anywhere in the world. Some of the companies limit the amount to 10 percent of the amount of the insurance.
The Liability Protection Coverage Plan
This type of coverage insurance plan helps you to protect you and your family member is responsible for hurting or damaging someone else’s property. Like for an example- if someone slips from the staircase in your home and is injured, then the liability insurance can help you by providing with legal defense fees and in the event of settlement or judgment and can pay damages up to your coverage limit.
The liability coverage also pays for the damages caused by the pets. So if your son/daughter or your dog damages any property of your neighbor then you are covered.
Additional Living Expenses
This policy pays you additional costs of living away from home if you cannot live their due to certain damages caused by the natural and unnatural disasters. It includes your hotel bills, restaurant meals, and other usual living expenses. This coverage policy has certain limits like time limitation. You also have an option to increase the amount of ALE Coverage for an additional premium. This coverage insurance plan is different to that of the plans for the structure of the home. If you are renting a home, then the ALE Plan covers you for the rent that you have collected from your tenant if your home had not been destroyed.
Benefits of Home Insurance
The top most benefits of Home Insurance are
- Financial Protection– The Homeowners Insurance Policy provides money to rebuild or reconstruct your home if your house has suffered from any sort of disaster or to replace any lost property.
- Timely Recovery– The Home Insurance Policy helps the family to go through the rebuilding process quickly and help them to move on in their life. It also benefits families having psychological health, reducing stress and feeling loss.
- You can get a good policy at a low monthly premium rate.
- The Home Insurance policies can cut down your stress and tension level.
How to Choose a Home Insurance Plan Based on Your Requirements
There are different types of Home Insurance Plans available at various different prices and customised plans and offers and as per the individual needs. Below mentioned are some of the techniques that will ease down the method of choosing an insurance plan-
Check Premium and Coverage
At first, calculate a number of risks that your house faces or may about to face in the future. Like for an example- if you are staying near to the flood-prone area then you should ensure that your home insurance policy is covering these risks. Always check that whether your insurance policy plan fits in the shoes of the budget. You can also compare the premium policy plans as per your need.
Check claim settlement Ratio
A good company is surrounded by the time settling claims. The purpose of insurance might get deflated when you do not claim when it is required. Therefore, it is necessary to check the Claim settling record of the Companies before making an investment.
Before making an investment on any insurance plan do check the repo and the background of the company. Make sure that whether they have the offers and plans based on your need or not.
Covered Perils Offered by the Home Insurance Companies
The Home Insurance Policy offers coverage on the “Named Perils” and “Open Perils” basis. The named perils provide coverage for the loss that is mentioned on the list of policy. If it is not listed then it’s not covered. Whereas, the Open Perils provides coverage for all the losses except for those that are excluded specifically from the policy.
Some of them are as follows
Basic-Form covered Perils
These are the least comprehensive coverage plan. This provides the protection against the perils which is likely to get a result of total loss. If something happens to your home that’s not on the list below then you are not covered. The basic formed Perils include:
- Windstorm or Hail
- Aircraft or Vehicle Collision
Broad “Named Perils”
This includes the Basic form perils as well as other 6 additional covered perils. This is a named peril policy. This peril form is designed to cover most of the damaged caused to the property. The different types of Perils are-
- All basic form perils
- Burglary, Break-in damage
- falling objects (Breaking of tree branch)
- Weight of Ice and Snow
- Freezing and Plumbing
- Accidental Water Damage
- Artificial generated electricity
Special “all risk” Perils
These is the most inclusive form than the other two forms of perils. This policy covers all types of losses unless specifically excluded. The Special “all-risk” perils that are excluded-
- Ordinance of Law
- Power Failure
- Neglect War
- Nuclear Hazards etc.
For many homeowners, an Insurance is just a piece of paper that is signed and filed away. Home owner’s insurance is financial covenant, but it should also be treated as a living, breathing entity to be nurtured over time. Only by reading the policy carefully and considering a right agent and knowing about your coverage limits and choosing the offer plans and updating a Home Inventory can ensure your hard-earned money will keep that roof over your head strong and intact.