The two-wheeler industry in India has grown rapidly. In the absence of public transport during the pandemic, a greater number of people are now purchasing two-wheelers. Indian roads are expected to get flooded with these vehicles in future. According to a recent report, domestic two-wheeler sales are likely to grow by 6-8% over the next five years as the economy comes out of the covid-19 induced downturn.
As the traffic will increase, so will the number of two-wheeler accidents. Especially, given the poor condition of Indian roads and the fact that many Indians often ignore traffic laws and safety measures. More than a third (37%) of those killed in road accidents in 2019 were two-wheeler riders, noted a Ministry of Road Transport and Highways’ report published in October, 2020.
Hence given the situation, motor insurance is a must-have for all two-wheeler owners. In case of an accident, the insurance policy will protect you from the financial liabilities arising from the accident. However, before you start browsing insurance policies online, you should first understand how the premium is calculated.
Important factors that affect your bike insurance premium
The following paragraphs will explain factors affecting the two-wheeler insurance premium quote:
In India there are two different types of motor insurance policies available— third party and comprehensive. Third-party insurance is mandatory by law, but it only covers damages/injuries to the third party involved in an accident. A comprehensive policy, on the other hand, covers third-party liabilities as well as own damages/injuries.
Since comprehensive two-wheeler insurance offer more coverage, their premiums are higher than third-party insurance premiums.
Add-on covers are usually recommended for two-wheelers. There are different types of add-ons available with two-wheeler insurance plans, such as zero depreciation, roadside assistance and high-end electrical and non-electrical accessories. All of these come at an extra premium.
No Claim Bonus in bike insurance is a discount that is offered to you for every claim-free year. If you are renewing your bike insurance and have not filed any claim in the past year, you are entitled to a discount on the insurance premium. In this way, the insurance company rewards you for being a responsible rider.
NCB is usually 20% in the first claim-free year and can reach up to 50% in the fifth claim-free year, depending on the provisions of the policy document. If you have accumulated NCB, you can use it to reduce your two-wheeler insurance premium considerably at renewal.
Anti-theft device is a security feature that reduces the chance of your two-wheeler theft. This, in turn, helps in reducing the risk for the insurance provider. Just like how the insurers compensate for higher risk by charging a higher premium, the lower risk is rewarded with a lower premium.
Anti-theft device is a security feature that reduces the chance of your two-wheeler theft. This in turn helps in reducing the risk for the insurance provider. Just like how the insurers compensate for higher risk by charging a higher premium, the lower risk is rewarded with a lower premium.
Two-wheeler insurance companies offer two features - Compulsory excess and Voluntary excess. Compulsory excess requires you to pay a certain percentage of the repair cost from your own pocket, while the insurer pays the rest. Compulsory excess is fixed and cannot be increased or decreased.
However, there is voluntary excess, which you can adjust at the time of purchasing the policy. You can go for a higher voluntary excess to lower the insurance premium. But a higher excess will require you to pay more money from your pocket if your two-wheeler is damaged.
The amount of premium also depends on the model of your two-wheeler and its manufacturer. The more high-end the model, the higher is the insurance premium you need to pay. That means if you are the owner of a Harley-Davidson or Ninja you would pay higher premiums.
Do you know the cubic capacity of your two-wheeler’s engine? If you do, you are one step closer to knowing what your insurance premium should be. The higher the engine capacity, the higher will be the premium charged.
The geographic location of the person using the two-wheeler also contributes towards determining its premium amount. If you stay in an urban location with a higher density of traffic, this results in higher incidences of accidents. Well, that again means a higher premium for you!
Importance of using a calculator for bike insurance
With so many variables in play, figuring out the right premium manually can be complicated. That is where a bike insurance premium calculator becomes useful.
Why use a calculator?
- Accurate estimation: It considers your bike’s details, coverage type, location and other factors to give a real-time estimate.
- Comparison made easy: You can compare various two wheeler insurance premiums from various companies and choose what suits your budget and needs.
- Customisation: By selecting different IDVs or add-ons, you can see how the premium changes, helping you customise your policy effectively.
- Time-saving: No paperwork, no agent dependency, just enter your details and get your quote within seconds.
Whether you are buying a new bike or renewing your comprehensive two wheeler insurance, a calculator can help you make cost-effective decisions without compromising on coverage.
Conclusion
Two-wheeler insurance is now easily available online in India. ICICI Lombard has a simple process of buying as well as renewal of two-wheeler insurance policy online. It provides 24x7 claim assistance so that your claims are settled fast. Once you are aware of the factors that affect insurance premiums, you can easily decide on which policy to opt for.
However, before making any payment, it is always advisable to read the policy documents carefully so that you are fully aware of the benefits, inclusions and exclusions of the selected policy.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.