Two Wheeler Insurance

What is Two Wheeler Insurance?

Two wheeler insurance, or bike insurance, is an insurance policy that helps you to cover against damages that may happen to both you and to your two-wheeler due to events like accidents, thefts, fires, or natural disasters. You will also get protection against liabilities arising due to damages to any third-party vehicle, property or person. A two-wheeler insurance covers different types of two-wheelers, like motorcycles, mopeds, scooters and more.  

Why Do You Need Two Wheeler Insurance?

Two-wheeler sales in India reached an all-time high as of 2019, when India's auto industry sold some 21 million units. This figure is almost double the 2011 sales, when just 11.77 million two-wheeler units were sold in India. This data alone speaks for the volumes of two-wheelers in India! (1)

With so many two-wheelers muddling across cities, accidents are prone to happen. Perhaps that’s why, at least having a Third-Party Bike Insurance is mandatory by law. This way, if you run into a third-party vehicle or someone bumps into you, you will be covered against any damages and losses caused. 

Digit provides two-wheelers with three kinds of bike insurance policies. From the complete Comprehensive Cover to standalone Third-Party and Own Damage Bike Insurance Policies as well. 

The best part? Comprehensive Bike Policies can further be customized by opting for add-ons that help protect your bike in all possible situations. All this within just a few minutes to spare online, and we’ll take care of the rest! 

When we say we’re making claims and well, insurance simple, we truly mean it!

• People hate waiting. That’s a fact. That’s why, instead of having you wait aimlessly for surveyors to check for damages during an accident, we let you self-inspect your bike’s damages through our smartphone-enabled app.
• With a claim settlement ratio of 97% in two-wheeler insurance claims, you must know that we really love claims and won’t beat around the bush to get your claims settled!  
• We truly believe in the digital economy. That’s why, even when it comes to claims – no need of hard copies! All you need to do is upload the required documents during claims, and you’re sorted.
  

Get insights into the growth and trends of the two-wheeler insurance market in India from 2014-2024. The market is distributed among the North, South, East, and West regions.

You and your friend who own a two-wheeler from the same company might be paying different insurance premiums, but why? Here are several factors that affect your bike insurance premium calculation differently, including:

Type of Insurance Plan

Your two-wheeler insurance premium is primarily based on the type of coverage or insurance policy you buy. The premium on the Comprehensive Insurance Policy is slightly higher than on a Third-Party Policy, as the former offers insurance coverage for third-party liabilities and Own Damage. 

Two-Wheeler Make/Model

This factor significantly influences the two-wheeler insurance premium. If you insure a low-cost two-wheeler or a regular scooter, the premium would be lower than a more expensive vehicle or a luxury bike.

It is because the parts of different models have different replacement costs at the time of the claim. So, the higher the value of the insured vehicle, the higher the risk for the insurer. 

Age of the Vehicle

The market value of your two-wheeler is influenced by the age of the vehicle, which in turn impacts your insurance base premium (excluding NCB, Discounts/loading, etc.)

The older vehicle will have a lower market value due to depreciation, so the sum insured will be lower, and you will need to pay less base premium. On the other hand, a brand-new vehicle with a higher market worth will fetch a higher base premium.

Insured Declared Value (IDV)

IDV refers to your vehicle’s approximate current market value after calculating its depreciation value. It is a crucial component of any insurance policy and is directly proportional to the premium.

No Claim Bonus (NCB)

It is a reward in the form of a discount upon not raising any claim in a policy year. So, at the time of the policy renewal, the percentage of NCB value you are eligible for, as determined by your insurer, can significantly lower your insurance premium for the following year.

Add-On Covers

If you wish to protect your two-wheeler in all possible situations, you can customise your Comprehensive Two-Wheeler Policies by opting for add-on covers such as a Zero Depreciation Cover, Tyre Protect Cover, RTI and more. This will increase your scope of coverage and hence leads to an increase in your premium amount.   

Engine’s Cubic Capacity

If the cubic capacity (cc) of your vehicle’s engine is 75 cc or less, your insurance premium would be low. If your two-wheeler is labelled 350 cc, you will have to pay a larger premium for the coverage. 

RTO Location

The vehicle’s geographical location also determines your insurance premium value. If you frequently ride in a city with more accidents, the premium will also be higher and vice versa. 

Case 1: If you bought a new luxury bike

Being the owner of a luxury bike might make you feel proud but comes with a lot of responsibilities as well. Firstly, you need to safeguard it against all types of damage and mishaps by getting a comprehensive two-wheeler insurance.

It covers both third-party liability and own damage. For further enhanced protection of your costly vehicle, you must purchase appropriate add-ons.

A Zero Depreciation Cover will get you the maximum claim amount without considering the depreciation of its expensive parts. You should also protect your top-end bike in case of theft or total loss by getting a Return to Invoice Cover.

You can avoid spending a chunk on repairing the expensive engine of your bike by getting an Engine Protection Cover. Also, it is better to get a consumables add-on to cover the replacements cost of lubricants, oils, nuts, bolts, screws, washers, grease, etc. of the luxury bike.

Case 2: If you own an 8-year-old bike that you drive daily

Many motorcycle owners tend to overlook the importance of two-wheeler insurance for a 8-year-old bike, but it is legally required to have at least third-party insurance. Considering the age of your bike, it is advisable to have own-damage coverage, which provides protection for repairs or replacement in the event of accidents, theft, fire, natural disasters, and more.

Alternatively, it is better to get a comprehensive bike insurance as it will protect your bike against a number of factor, which is important since you drive your bike daily.

Case 3: If you still own that decades old scooter, locked in a corner

Some possessions hold sentimental value, like the scooter that has been in your family for generations. Although it is rarely used, it is still necessary to have at least third-party insurance coverage to comply with legal requirements. Since you don't actively ride the scooter, you can choose to forgo comprehensive insurance and add-ons.

What is Insured Declared Value (IDV) in Two Wheeler Insurance?

IDV is the maximum amount your insurance provider can give you, in case your bike is stolen or totally damaged.

The 2 Wheeler Insured Declared Value and your two wheeler insurance premium go hand in hand. This means, the higher your IDV is, the higher your bike insurance premium – and as your vehicle ages and IDV depreciates, your premium also decreases.

Also, when you decide to sell your bike, a higher IDV means you’ll get a higher price for it. Price may also be affected by other factors like usage, past bike insurance claims experience etc.

So, when you’re choosing the right two wheeler insurance policy for your bike, remember to make note of the IDV being offered, and not just the premium.

A company offering a low premium may be tempting, but this could be because the IDV on offer is low. In case of total loss of your bike, a higher IDV leads to higher compensations.

At the time of resale, your IDV is indicative of the market value for your bike. However, if you have maintained your bike really well and is shining as good as new, you can always aim at a price more than what your IDV might offer you.

At the end of the day, it all boils down to how much love you have showered on your bike.

What is No Claim Bonus (NCB) in Two Wheeler Insurance?

NCB (No Claim Bonus) definition: NCB is a discount on premium given to the policyholder for having a claim-free policy term.

A no claims bonus ranges from a discount of 20-50% and is something you earn at the end of your policy period by maintaining a record of making no bike accident claims under your bike insurance policy.

This means that you can’t get a no claims bonus when you buy your first comprehensive bike insurance policy – you can only get it on your policy renewal.

A No Claim Bonus is meant for the bike insurance policyholder regardless of the bike. This means, even if you switch your bike, your NCB stays with you.

If you decide to buy a new bike, you will be issued a new bike insurance policy, but you can still avail of the NCB you accumulated on the old bike or policy.

What is Zero Depreciation Two Wheeler Insurance?

Like everything in life, there is a decrease in value of certain parts of your bike, including the bumper or any other metal or fibre glass parts.

So, when a damage happens, the full cost of replacement is not given as depreciation is deducted from the claim money. 

But this addon makes sure there is Zero Depreciation and you get the full value of the cost of repair/replacement provided the vehicle is repaired at Digit Authorized Workshop.

Know more about Zero Dep Two Wheeler Insurance

What is Cashless Claims in Two Wheeler Insurance?

If you opt to get your bike repaired with a Digit Authorized Repair Center, we will make the payment for the approved claim amount, directly to the Repair Center. This is a Cashless Claim.

Please note, if there are any deductibles, like a Compulsory Excess/ Deductible, any repair charges for which your insurance doesn’t cover you or any depreciation costs, that is to be paid by the insured’s own pocket.

Know more about Cashless Bike Insurance.

A bike insurance calculator is an online tool to help you ascertain the right bike insurance quote for your bike.

The same can be calculated by entering your bike’s basic details such as your bike’s make and model, registration date, type of plan, etc.  

Calculate Bike Insurance Premium

• Step 1: Enter your bike’s make, model, variant, registration date, and the city you ride your bike in.
• Step 2: Press Get Quote and choose between a Third-Party Bike Insurance and Comprehensive Bike Insurance.
• Step 3: Tell us more about your last bike insurance policy (if any) such us your NCB/Claim History, Expiry Date, etc.

Know more about Two Wheeler Insurance Premium Calculator.

Components of a Bike Insurance Premium

Own Damages Cover - Included in Standard/Comprehensive and standalone Own Damage policies, this part of your bike insurance would cover for losses and damages caused to your own bike. 

• Bike’s IDV - Your bike’s IDV a.k.a the current market value of your bike helps directly determine your bike’s premium. 
• Add-Ons - Your bike insurance premium will be affected basis the type and number of add-ons chosen. 
• Third-Party Liabilities - It is mandatory by law to at least cover for third-party liabilities in a bike insurance and the premium based on it is usually determines by the IRDAI guidelines. Therefore, this component of your bike insurance will always remain the same.
• Bike Make & Model - Your bike’s make and model directly affects the IDV, cc, and the risks associated with your bike. Therefore, it has a huge impact on your bike insurance premium for any plan you pick. 
• PA Cover - If you don’t already have one and opt for it within your bike insurance plan, your bike insurance premium will slightly increase by a small margin. 
• Age of Bike - The older your bike is the lesser will be its premium and vice versa! 

How to Reduce Your Two Wheeler Insurance Premium?

• If you have had no claims for more than 4-5 years, you can look at increasing your Voluntary Deductible and decreasing your bike insurance premium.
• This is obvious but important. Apart from being safe on the road, cautious driving in speed-limits, will avoid accidents and make sure you get a No Claim Bonus during your bike insurance renewal each year.
  
• Talk to your insurance company. If you feel you’re still not getting a cheap bike insurance quote, it’s not a bad idea to call the insurance company you are interested in once before making the final decision. 

Compare Two-Wheeler Insurance Quotes

How should you compare your bike insurance with other companies?

• Check your IDV - A lot of cheap two-wheeler insurance quotes will have a low IDV (Insured Declared Value), which is the market value of your two wheeler. If it is low, then at the time of claim, esp. during theft and total damage, you are in for a shock! So setting this at the Right Value is important. Digit gives you the option to set it while buying your two wheeler insurance policy online.
• Check the Service Benefits - Go for a company that gives you good after-sales services. Some of the services Digit offers are 24*7 Customer Care Support, Cashless at 4400+ Garages, and many more.
• Check the addons they are offering - Go for a company that gives you the option of choosing the right add-ons that are useful to you at competitive prices.

Two-Wheelers Contribute to 34% of Road Accidents in India

According to the Ministry of Road Transport and Highways, Two-Wheelers are one the highest contributing factors of road accidents in India. This is a huge factor alone that led to making at least a Third-Party Bike Insurance mandatory by the Motor Vehicles Act. This way, people not only ride responsibly but in case of an accident or collision, damages and losses will be covered for.

Protects the Third-Party

Accidents are prone to happen, but what happens to the person affected?  One of the reasons why third-party bike insurance is mandatory is so that in unfortunate situations, the affected party can be protected by ensuring all damages, and losses are covered for.

Easing Legal Complications

When one gets into an accident, damages alone aren’t the source of worry. It is the legal process too that bothers one, due to the time and energy spent on it. However, with the right bike insurance in place, legal processes too would be taken care of efficiently. 

Know more in detail about Why Bike Insurance is Mandatory in India?

In the world of online shopping, quick UPI payments and what not, buying a bike insurance online is just one part of this ever-growing digital economy. It not only makes things easier and more convenient for you, but also helps reduce costs and hence, your bike insurance premiums!

All you need to do to buy a bike insurance online is keep your basic two-wheeler details handy and your debit/credit card or UPI id ready and your bike insurance will be emailed to you in no time.

Saves Time

One of the biggest advantages of buying a bike insurance online is the fact that it can save you so much time! No need to visit an agent or an insurance office physically. All you need is your laptop or smartphone and a stable internet connection.

Customization Available

Another advantage of buying a bike insurance online is the extent of customization available online. From customizing your IDV to opting for a combination of different add-ons like a Zero Depreciation Cover, Tyre Protect Cover, et al the customization available online can never be done offline.

Zero Paperwork

Nobody likes paperwork and we get that! That’s why, when you buy a bike insurance online with Digit, there is no paperwork involved. Everything is literally just online! 

Do you know that you can buy or renew your bike insurance policy regardless of whether it’s a brand-new bike or a secondhand one?

However, if you're purchasing a second-hand bike, check if the owner already has a two-wheeler insurance or not, and get the same transferred to your name, well within 14 days of purchase. Additionally, also make sure:

• Both the bike and its insurance are transferred to your name successfully. You should ideally do this within 14 days of purchase.
• Make sure you are aware of the claim history of the bike. You can do this by providing the respective policy number to your bike’s current insurance provider.
• If you’ve had a bike insurance earlier (for another bike, of course!) you can transfer your No Claim Bonus to your new car insurance policy.
• If your bike’s owner doesn’t have a valid bike insurance, you can instantly insure your two-wheeler on our website here.
• If you’ve already transferred your secondhand bike insurance in your name already, check for the expiry date and make sure you renew it before or on the date of its expiry.

Know more about

• Second Hand Bike Insurance
• Things to check before buying a used bike

If you’ve never bought a bike insurance for your bike, it’s still never too late to get one.  However, here are the three most important things you should keep in mind before buying a bike insurance for your old bike.

Bike Use & Type of Bike Insurance

Are you buying a bike insurance to just keep your old bike legal when you take it out, or protect it from damages and losses? Based on your bike’s use and type, you need to decide whether a third-party or comprehensive bike insurance works for you. 

IDV of your Bike

IDV is the market value of your bike. Basis this, your bike insurance premium and your claim amount too during claims. Since your bike is an old one, set your IDV basis its current market value, and don’t forget to also account for the depreciation over the years!

Additional Covers

When you opt for a two-wheeler comprehensive insurance, you will be given the option to add additional covers to your policy to give your bike extensive coverage. As per the use and age of your bike, you can pick a combination of add-ons that will help you cover for your bike in all possible situations.

However, if you’re planning to buy a bike insurance for your old two-wheeler, see which add-ons would be applicable or not. For example; A Return to Invoice cover may not be applicable if your bike is more than five years old.

Know more about Old Bike Insurance.

Why is it Important to Renew your Expired Bike Insurance Policy on time?

You’ll Lose out on your NCB

NCB is your No Claim Bonus, that you may have accumulated over the years if you’ve never made a bike insurance claim yet. This accumulates bonus usually helps you get a discount on your next bike insurance renewal. However, if you don’t do so before your bike insurance’s expiry date, you may lose out on your NCB completely! 

Higher Chances of Paying a Penalty

As per the revised Motor Vehicle Act, anyone caught without a valid bike insurance is liable to pay a penalty of Rs 1,000 to Rs 2,000 for the first penalty and up to Rs 4,000 for the second time. Renewing your bike insurance on time will ensure you don’t get caught in such a situation. 

Bear the Financial Brunt

The whole purpose of having a bike insurance is to protect yourself from unexpected expenses that could arise out of both minor and major accidents or even natural calamities. Not renewing your bike insurance on time, could lead to losses that you may have to overcome in the likelihood of the same. 

Know more about How to Renew Expired Bike Insurance Policy?