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When selecting a two wheeler-insurance policy, most individuals opt for the one offered by their dealership, be it for convenience or recommendation from their sales representative. But it is essential you consider a few points when selecting one. Most times, we might have chosen the policy that your peers use, not by comparing, but based on user experience. While it is a safe option to trust the experience of other users, it is also essential to identify your needs before finalising on one.
Different motor insurance companies offer a variety of policies that have varying coverage options. So you should look for a suitable plan that can tick-off your insurance needs from your checklist.
Let us look at a few basic questions that one should ask –
#1 What is the maximum value that I will get and how is it calculated?
The maximum value in case of a total loss of theft is termed as the Insured Declared Value or IDV. It is the maximum amount which is compensated by the insurance company. This value is determined from the selling price listed by the manufacturer and adjusted for depreciation. Spares which are not fitted at the assembly line are computed differently. While opting an extensive two-wheeler insurance coverage, one has the option to determine the IDV for their vehicle.
Here are the rates of depreciation for calculating IDV –
| Age of Vehicle | Depreciation rate for purpose of IDV |
| Not more than 6 months | 5% |
| More than 6 months but not more than 1 year | 15% |
| More than 1 year but not more than 2 years | 20% |
| More than 2 years but not more than 3 years | 30% |
| More than 3 years but not more than 4 years | 40% |
| More than 4 years but not more than 5 years | 50% |
#2 Which coverage option is mandatory for two-wheelers?
There are two types of coverage that you can choose from – Third-party or liability-only insurance and Comprehensive or extensive cover. As per the Motor Vehicles Act, every two-wheeler must have at least third-party insurance policy. Although, it must be noted that a third-party policy only provides for damages or injuries caused to another person. It does not include coverage for the policyholder.
#3 How to select the right two-wheeler insurance policies?
When buying two wheeler insurance online, you should make a note of the IDV declared, no claim bonus to your policy, as well as the deductible portion of your plan. Also, membership of the Automobile Association of India (AAI) or other similar institutions can get you additional benefits.
#4 Does deductible affect my premium or policy coverage?
The deductible portion of your policy is the amount you need to pay before the benefits under your two-wheeler policy kick in. There are two types of deductibles- compulsory and voluntary. The compulsory deductibles are predefined by the regulator, IRDAI, whereas the voluntary deductible, as the name states, are at the option of the policyholder. The amount of voluntary deductible can influence the premiums under your policy. Make sure you compare two wheeler insurance along with its deductible as per your affordability in case of a claim.
#5 What are the standard inclusions and exclusions to my plan?
The policy documents specify the inclusions as well as the exclusions to your policy. You must ensure you take a thorough look at them before the final purchase. Some of the common inclusion and exclusions are listed below –
Inclusions: Damage due to fire, theft, explosions, burglary, self-ignition, riots, floods, storms, cyclones, etc. are generally included.
Exclusions: The damages to your vehicle when riding under the influence of alcohol or drugs, riding without a valid driver’s license, electrical and mechanical breakdowns, damage outside the geographical limits forms part of the exclusions list.
Lastly, don’t forget to make use of a two wheeler insurance premium calculator that can help you get the best deals after comparing the myriad choices. Stay insured and stay protected.
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