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Published on July 26, 2019. EST READ TIME: 5 MIN

Your two-wheeler deserves care and pamper, unarguably it’s the best way to experience freedom and give an edge to the endless city traffic. However, as per the recent reports by Indian roadways ministry, two wheelers have faced the highest number of accidents in 2016.The share of two-wheelers in total road accidents has increased from 28.8 % in 2015 to 33.8 % in 2016. Number of two-wheeler accident deaths stands at 52,500. Of this, in 10,135 cases the victims did not wear helmets. With these statistics, it’s easier to understand the complications associated with riding two wheelers. Though it’s a fulfilled activity and full of adventure, it’s imperative to follow traffic rules and control the pace while riding across the length and breadth of India.

There are two major types of bike insurance

1. Comprehensive Two Wheeler Insurance

A comprehensive two wheeler insurance gives you a wider cover and a wide range of benefits to choose from. It offers coverage against own vehicle loss partial or total, personal accident for driver and protection for third party liabilities.

2. Third party liability only

Third-party insurance only is a mandate under the Motor Vehicles Act, 1988. A multi-year policy covers legal liability for injury, death, owner driver & optional personal accident cover for Pillion passenger, and/or property damage caused to a third party in the event of an accident.

Though third party liability only is a mandatory policy for riding a two wheeler, it is advisable to buy a comprehensive plan to ensure all round coverage and total protection against risks. The premium amount of comprehensive plan is a little on the higher side as compared to third party liability claims , but it’s totally worth it for the coverage that it offers. Insurance policies come with a premium cost, which has to be paid on yearly basis to enjoy continued benefits. However, there are several factors that are considered before deciding the premium amount.

Premium depends upon the following factors

• IDV – Known as Insured declared value or the sum insured of the policy. It is calculated based on the manufacturer’s listed selling price and is depreciated each year to account for wear and tear of vehicle.

• Age of the vehicle – Apart from being used to calculate the IDV, it may also be used to determine the discounting and add-on rates in premium calculation

• Capacity – The engine capacity of the vehicle may determine the - premium especially Third Party, for the insurance of the policy.

• No claim Bonus – The no claim bonus discount is given to the customer for each claim free year the vehicle has been insured. In case of a claim, accumulated No claim Bonus discount becomes zero.

• Place of Vehicle Registration – The place of vehicle registration also has a bearing on the premium of the policy

Mere buying an insurance policy for your brand new car isn’t enough; you have to ensure yearly renewals to stay protected always. Timely renewal help in delivering continuity benefits. You can continue driving your vehicle without any hassle.

This blog has been written by

S. Gopalakrishnan | Motor Insurance Expert | 40+ years of experience in insurance industry

A veteran in insurance industry. S. Gopalakrishnan is a name to reckon with in the field of reinsurance, he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.

S. Gopalakrishnan recommends "HDFC ERGO for your vehicle insurance needs, it has always put customer’s interest at the forefront, with round the clock assistance to deal with emergency breakdown issues and hassle free claims process. You can be assured of complete and reliable guidance through the whole process".