Insurance has witnessed a great transition in India since its inception decades ago. Apart from providing coverage for living human beings, insurance policies can even provide protection for vehicles which has more or less become an indispensable part of today's era. Most of the houses in India have either a two-wheeler or a four-wheeler or even both, thanks to the growing dependability of man on vehicles to even cover a furlong distance. The growing number of vehicles on road in India has its irrecoverable damage to the natural environment.
Despite driving carefully on road, accidents are things which people do not have control over. The resulting damage can take a toll on one's expenses, to help riders from unforeseen circumstances and situations the government of India has made it mandatory for vehicles to have insurance coverage, as per the Motor Vehicle Act 1988.
What is a Two Wheeler Insurance?
A Two Wheeler Insurance is a type of insurance coverage which has been made mandatory in India. As of now, it is made compulsory to purchase auto insurance at the time of purchase of a vehicle. The motor insurance helps protect people against any untoward incident (accidents or damages) which takes place on road. Active two-wheeler insurance will provide coverage for the owner from unexpected occurrences. A two-wheeler insurance policy can be provided by any of the authorized insurance company which are registered under the Insurance Regulatory Development Authority of India (IRDAI).
At the time of opting for a two-wheeler insurance plan often the insurer will be confused as to which one to opt for which provides complete financial protection. Apart from third-party liability benefits, the two-wheeler insurance policies will come with an array of additional benefits like discounts, accessories, free services, repair of two-wheeler at a discounted price and so on.
Given the presence of many industry players, picking up the best insurance plans within the set budget will be a difficult job. So let's check out a list of criteria to evaluate before picking up the best two-wheeler insurance plan.
List of Tips to Evaluate before Choosing the Best Two-Wheeler Insurance Policy
The insurer should opt for a comprehensive two-wheeler policy which will provide coverage for risk factors in an efficient way. If you pick a basic insurance plan, it will provide coverage only for third-party damages. If in case of theft or loss of vehicle, any kind of insurance coverage will not be provided. Read the offer document carefully before the purchase of an insurance policy.
Usually, the amount of premium will depend on the model and age of the vehicle, the age of the owner, geographic location, other risk factors and so on. If the frequency of usage of the vehicle is high they one will have to shell out a higher premium and vice-versa.
Claim Settlement Ratio
The insurance company's performance will be evaluated based on the claim settlement ratio. You should opt for an insurance plan which provides you with pre-decided insurance coverage in case of loss or damage to the vehicle. The insurance company should be able to stretch a helping hand as per the applicable terms and conditions as mentioned in the policy. If you go with an insurance company which has the highest claim settlement ratio, then your processing claim will be on a higher note.
Tenure of the Policy
The tenure or period of the insurance policy will affect the premium amount. If you choose a long term tenure, then the insurance premium will be low and this will help you to save your money. Having a long term two wheeler insurance plan in place will help you to combat non-renewals as the Insurance Regulatory and Development Authority of India (IRDAI) has allowed two-wheeler to have insurance for up to 3 years.
Add - on Coverage
Apart from the basic features, the add - on coverage will be provided by insurance firms depending on the needs of the customers. Though the premium amount increases with additional coverage, there will be greater flexibility at the time of filing the claims.
A network of Service Centers
Always buy a two-wheeler insurance plan from an insurance firm which maintains a large number of service centres (garages). As this will help you to manage cashless service from its widespread tie-up centres. If your vehicle is involved in an accident, do report the matter to the insurance company right away.
Always choose the insurance company which provides the best insurance service and customer support and you should be able to reach out to them instantly either by phone, or email or through any other channels. The customer support executives should offer the required assistance in finding out the nearest service centre wherein repair or replacement of spare parts will be done smoothly and instantly.
Best Two Wheeler Insurance Plans in India
Bajaj Allianz Two - Wheeler Insurance
Rolled out by joint venture between Bajaj and Finserv Limited (owned by Bajaj Group of India and Allianz SE), has seamless services, strong customer-oriented approach, innovative products which makes it one of the best two-wheeler insurance provider in India.
Key Features of Bajaj Allianz Two - Wheeler Insurance
- Easy online policy renewal
- Offers third party liability benefits in case of accidental injury, property damage or death.
- Compensates damage in case of loss of the two-wheeler due to natural calamities such as floods, cyclones, earthquakes and so on.
- It even compensates damage in case of human-created dilemma such as riots, theft, terrorist activity and so on.
- Get quick and hassle-free claim settlement.
Bharti AXA Two – Wheeler Insurance
Provided in a joint venture between the Bharti Enterprises with 51% stake and AXA Group with 49% stake, the insurance company commenced its operations in August 2008 and has close to 104 branches spread across length and breadth of the country.
Key Features of Bharti AXA Two - Wheeler Insurance
- Provides coverage for accidents on road (including damages or losses).
- Third-party liability in case of losses or damages to the properties or bodily injuries caused to third-party will be covered under the policy (if the accident is caused due to your two-wheeler).
- Get depreciation cover add-on to enhance the life of your two-wheeler.
- Customers can use any of the modes for payment to buy an insurance policy online either by using a debit card, credit card, e-wallet, net banking facility.
HDFC ERGO Two – Wheeler Insurance
Named as one of the best insurers which provides two-wheeler insurance at competitive prices, the company has bagged the highest claim settlement ratio and has secured 'iAAA' rating. This insurance provider also provides smooth policy issuance, customer service quality, claims service process, superior information security.
Key Features of HDFC ERGO Two - Wheeler Insurance
- Get discounts on your premiums
- Customisable two-wheeler insurance plans
- Policyholders can file for claims through online mode.
- Provides immediate online policy issuance and renewal.
- Repair services are available along with accessories.
- Has tie-ups with over 6800 network garages across the country which provides cashless service facility.
- Get Zero Depreciation Cover
New India Assurance Company
The government-owned company - New India Assurance Company has its strong presence in more than 27 nations. It is the only Indian direct insurer firm which has been conferred 'A' rating by A.M. Best (Credit Rating Agency for Insurance Industry).
Key Features of the New India Assurance Company
- The policy pays towards towing charges incurred from the place of accident to the workshop (maximum of Rs 300) for scooters or motorcycles.
- Outstanding grievance resolution system - get a resolution to reported problems within 15 days of reporting.
- Quick claims processing facility.
Tata AIG Two – Wheeler Insurance
A joint venture between Tata Group and American International Group (AIG) started Tata AIG General Insurance Company Limited in January 2001. It has grown strongly over the years and has emerged as the best preferred private general insurance company in the country. With a robust multi-channel distribution network of more than 22,000 licensed agents and over 390 license brokers, the company has spearheaded several firsts to its credit.
Key Features of Tata AIG Two - Wheeler Insurance
- Get a six-month warranty for accident repairs
- Get free pick up of two-wheeler in case of accidents
- Get Assured claim settlement within 7 days.
- Get compensation for loss of personal belongings inside the insured two-wheeler (in case of an accident).
- Add - on Covers such as daily allowance, no claim bonus protection, key replacement, depreciation reimbursement, return invoice are available.
All the investors should indeed read the offer related documents carefully when it comes to buying any kind of insurance policies in India and understand the key terms properly before investing in it.
About the Author
Archana is a Content Writer at GoodReturns. She has been writing articles related to investment planning and personal finance for more than two years.