A Few Points on Insurance Policy For Two Wheelers

Two Wheeler insurance in India, like all other Motor Insurance, is governed by the India Motor Tariff. It is applicable to all motorized Two Wheelers.

There are two basic types of policy, Act only Policy and Package Policy. Act only Policy covers liability towards third parties ( death / injury / Third party property damage ) and Personal Accident cover to the owner cum insured. Package Policy covers loss / damage to the vehicle or its accessories, in addition to the cover granted under the Act Policy. The Premium charged depends on

1. the value of the vehicle
2. Cubic Capacity of the Vehicle ( not exceeding 150cc / exceeding 150 cc but not exceeding 350 cc / exceeding 350 cc )
3. age of the vehicle ( not exceeding 5 years / exceeding 5 years but not exceeding 10 years / exceeding 10 years )
4. Geographical Zone(s) in which the vehicle is registered ( a. Ahmedabad, Bangalore, Calcutta, Chennai, Hyderabad, Mumbai, New Delhi and Pune

Rest of India

The Registered Owner of the vehicle is required to fill in a proposal form, giving full details of the vehicle, in addition to certain basic details like/regarding his name, age, address, occupation etc. The owner may opt for the following extra covers on payment of prescribed additional premium.

1. Electrical , Electronic fittings and accessories
2. CNG / LPG Kits as permitted by RTA
3. Liability to paid drivers / cleaners
4. Liability to employees ( of the Insured ) using the vehicle
5. use in / for rallies, motor racing, speed testing organized by recognized motoring agencies
6. use for driving tuitions given by Driving Schools recognized by RTA
7. Personal Accident cover to the owner / insured ( if he has a valid Driving License )

Discount in the basic premium is granted if:

1. the vehicle is fitted with a side car
2. the vehicle is fitted with anti-theft device(s)
3. the owner is a member of recognized Automobile Association
4. the vehicle is designed / modified for use of blind, handicapped and mentally challenged persons ( if suitable endorsement is made in the RC by RTA )
5. the insured has not preferred any vehicle damage claim ( No Claim Discount )
6. if the Insured agrees to bear an additional amount (Rs.500 to Rs.3000) as deductible in the event of a own-damage claim (Voluntary Deductible)

Limits of Liability of the Insurer:

For OWN DAMAGE Claims (Partial damage caused to the insured vehicle by accident , fire, strike, riot, earthquake, flood, malicious act, terrorist activity, while in transit by road, air, rail, inland waterway, lift, elevator) - Cost of materials and labour (including Towing Charges), as assessed by a qualified surveyor appointed by the Insurer, subject to the following:

1. Compulsory Excess of Rs.50 per accident
2. Voluntary Deductible, as already agreed by the Insured
3. Parts to be replaced will be allowed with a depreciation of 50% for rubber parts, 30% for fiber Parts, 5 to 50% for others parts. Glass Parts are allowed in full, without any depreciation.

If the vehicle suffers a total damage (theft or due to causes mentioned above) - The Declared Value of the Vehicle will be paid (The Value of the vehicle as declared in the policy)

For THIRD PARTY Claims : for death or injury claims, the award decided by the Motor Accident Claims Tribunal will be satisfied by the Insurer. For Third Party Property Claims, the award decided by the MACT will be satisfied, subject to a maximum of Rs.100000 ( if the Insured has not opted to limit the TPPD Limit to the statutory requirement of Rs.6000 ).

The Insured is required to use the vehicle as per the terms and conditions of the policy, as otherwise, he would be held responsible for any liability ( Own Damage or Third Party ) incurred. A diligent Insured should be careful always - before and after taking policy.

1. He should fill in the Proposal Form carefully, as any incorrect or false answer may turn against him in the event of a claim.
2. The vehicle should not be used, unless it is covered by an insurance policy
3. Carriage of Goods (except samples) is not allowed.
4. Use of vehicle for hire or reward is not permitted.
5. The rider should have a valid Driving License.
6. The vehicle should not be used for speed testing, racing, pace making, reliability test or giving driving tuitions (unless extra cover has been taken).

If the Insured renews his vehicle policy without break in insurance and uses the vehicle in accordance with the terms and conditions of the policy, he would be free from unnecessary worries.