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You must have heard the famous saying" A Four Wheeler Moves Your Body A Two Wheeler Moves Your Soul ". Haven’t you heard of the trailblazers blazing their way across India? The legendary Harley Davidson Motor cycle has finally made its way into India. Bike enthusiasts in India are sent into joyous rhapsody on sighting of these bikes. Another famous bike used widely in India for those off road rides is the Royal Enfield. Imagine blazing your way across some of the most scenic sights in India on a Royal Enfield? The mountainous terrain or the off road trail of Leh, The hectic rush of Delhi, Lush green mountains of Manali ,Root bridges of Cherrapunji ,The beach roads of Goa or the beautiful scenic beach hugging coastal roads of Chennai and Pondicherry. Don’t you fantasize about such joyous rides but they certainly come at a price. What if there is a boulder or a fallen tree when you make those sudden sharp turns around those bending and dipping curves?.What if that lovely bike of yours is stolen ?.What if you are involved in a nasty collision with another biker who wants to ride the wind?.What if you would have to bear the huge losses involved in a bike collision with another bike and you don’t have sufficient funds to pay the injured person when you are at fault?.A 2 Wheeler insurance policy is your sole hope and rescue at this point of time. I would like to remind you that the team of Financial Planners at Moneymindz.com are always there for you to plan your two wheeler insurance needs in a most effective and efficient manner. You can explore this unique Free Advisory Service just by giving a missed call on 022-6211 6588.
As per Indian Law having an insurance policy for your two wheeler is compulsory. This serves to be very useful to you if your two wheeler is stolen or you are involved in a serious motor accident. Many college students in our country purchase two wheelers on loan and ride rashly. Who would pay the heavy damages and liability costs that would be incurred if they were involved in an accident?. You have the third party liability which is that portion of a two wheeler insurance policy that covers damage caused by you ,mainly bodily injury to another person or damage to another person’s property. This policy would not cover the loss or damage suffered by your own two wheeler or injury to the pillion rider. A package policy is a comprehensive policy which covers loss and damage suffered by your two wheeler in addition to third party liability.
The sum for which the two wheeler is insured is known as the Insured’s Declared Value popularly called IDV. It is fixed by the insurance company and represents the current market value of the two wheeler. This remains constant throughout the term or time period of the policy. This value becomes very necessary when we want to evaluate the price of the two wheeler when it is stolen or damaged beyond repair. This value mainly depends on the manufacturer’s listed selling price and the model of the two wheeler. Remember the age of the two wheeler also plays an important part in determining the IDV .This is mainly calculated after appropriate depreciation charges are applied.IDV is then bifurcated into two parts, own damage and third party liability for the purpose of premium calculations. Own damage section represents the two wheeler, accessories, side car, anti theft devices and also the non claim bonus.
|Depreciation Charged To Arrive At The IDV Value Of The Two Wheeler||Depreciation Charged To Arrive At The IDV Value Of The Two Wheeler|
|Within A Period of 6 Months||5%|
|Above 6 Months But Within 1Year||15%|
|Exceeding 1 Year But Within 2 Years||20%|
|Exceeding 2 Years But Within 3 Years||30%|
|Exceeding 3 Years But Within 4 Years||40%|
|Exceeding 4 Years But Within 5 Years||50%|
You have two wheelers cubic capacity defined under the India Motor Act as a minimum of 150 CC , 150-350 CC and above 350CC.The average insurance premiums range from INR 5000-INR 7000 depending the category it falls under.
You have Zone A which includes Ahmedabad, Chennai, Delhi ,Mumbai,Kolkata,Bangalore ,Hyderabad and Pune where premiums charged are higher. Zone B includes the rest of India .Damage protection on your two wheeler can be extended even out of Indian Boundaries such as Bhutan, Nepal, Sri Lanka, Maldives, Pakistan, and Bangladesh on payment of an additional premium. However this does not apply when the two wheeler is in transit.
You are eligible for the no claim bonus when there is no damage claim made during the tenure of the policy. You require a comprehensive two wheeler policy for this and you get covered for damages only to your own two wheeler irrespective of whether you are at fault. You are able to procure deductions in the range of 20-50% on the premiums paid under the own damages section.
Let us consider that you purchased a second hand motorcycle from one of your friends. You have to make sure that the insurance policy of the motorcycle is also transferred to you. You the transferee has to write to the insurance agency within 14 days of receiving the policy with the details of the registration number, previous owner, date of transfer and date of the insurance policy so that a fresh certificate of insurance can be issued by the insurance agency, If you have a two wheeler insured under an insurance policy you can substitute it for another two wheeler provided they belong to the same class during the tenure of your policy. The premium would be adjusted on a pro rata basis. You need to note that the insurance policy of the two wheeler is divided into two parts. The first part covers the name, address, mobile number, policy number, Issued date of the insurance policy, term of the policy and the geographical area. The second part covers Registration details, Engine Number, Year Of Manufacture, IDV, Make of the two wheeler and so on.
Let us consider that your two wheeler has been involved in a nasty collision. You need to inform the insurance agency where your policy is in force .Your claim amount is based on the Total Loss/Constructive Total Loss. You have the IDV and if the claim amount exceeds 75% of the IDV then you have to calculate the Constructive Total Loss. You get the IDV minus the depreciation charges.
|Age Of Two wheeler||% Of Depreciation|
|Under 6 Months||Nil|
|6 Months To 1 Year||5%|
|Between 1 Year To 2 Years||10%|
|Between 2 Years To 3 Years||15%|
|Between 3 Years To 4 Years||25%|
|Between 4 Years To 5 Years||35%|
|Between 5 Years To 10 Years||40%|
|Exceeding 10 Years||50%|
If your two wheeler is stolen the first thing you need to do is to register a First Information Report (FIR) at the Police Station and then inform your insurance company .You would need a copy of the FIR for the claims processing. If your two wheeler is not found within a specific time period then the insurance company will process your claim.
I would like to end this article with the famous phrase " Be Safe Rather Than Sorry ". Just as you always remember to wear that helmet when riding your Motorbike " Do Not Forget To Purchase That Two Wheeler Insurance Policy ".