5 Things You Did Not Know About Two-Wheeler Insurance

You Can Transfer Your No-Claim Bonus (NCB)

No claim bonus (NCB) is a great feature of motor insurance policies that rewards the policyholders for not filing any claims during the policy term. It is provided regarding a discount in premium costs of the consequent no-claim policy tenure. Policyholders can even accumulate the bonus, as it might reach 40-50% in four to five years.

However, there are several myths around this benefit. The first myth around NCB is that the bonus is linked to the bike; therefore, when the bike is replaced by a new bike, the bonus will lapse. Similarly, it is also assumed that along with the bike, the bonus is also linked to the insurance company, so when a policyholder switches to a new company, the bonus lapses.

In reality, NCB is attached to the owner, not the bike. Therefore, you can easily transfer it to a new vehicle when buying or selling. When switching providers, you can also transfer it from your current insurance company to your new company.

Personal Accident Cover Is Mandatory: But You Only Need It Once

Personal accident (PA) cover has become compulsory for two-wheeler owners in recent years. Now, the must-have Personal Accident (PA) Cover of ₹15 lakhs is always mandatory. In a hurry to comply with the legal requirement of having a PA cover, many people overlook that a PA cover is needed per person, not per vehicle. So many people unknowingly have been paying for it multiple times if they own more than one vehicle.

Remember that even if you own multiple two-wheelers, you do not need to buy a PA cover for all of them, as the cover is for the policyholder and not the vehicle. So, if you already have a valid PA policy, you can relax.

You can enquire with your current insurance companies to ensure that you have not been paying double charges. To ensure you do not get double-charged in the future, inform your insurer and submit proof of existing coverage to avoid double charges.

Your Policy Lapses Even a Day After Expiry

As per the law of India, every two-wheeler owner must have minimum coverage for their vehicles at all times. By “at all times”, it means that even after a single day since the previous policy expired, the vehicle owner will be considered uninsured. The policy lapses the moment the tenure ends. To ensure that your policy does not lapse and you stay covered at all times, it is best to renew it at least 2-3 days before the expiry date.

If you miss renewing your policy even one day, you will lose coverage and accumulate benefits like NCB. Being uninsured makes you vulnerable to fines and financial loss, and you may require a bike inspection to reissue the policy. Here is what happens to your policy, depending on the renewal time:

Renewal Status and Its Impact

Add-Ons Can Customise Your Policy for Better Protection

Many view their two-wheeler insurance policy as a legal mandate that comes in a -one-size-fits-all, which cannot be any further from the truth. The policies are great financial tools that ensure stability in case of a mishappening. As their main aim is to provide financial cushioning in case of an accident or any other kind of damage to the vehicle, they offer flexibility to best meet the policyholder’s needs.

One great thing about these policies is that they are customisable, allowing policyholders to tailor their perfect policy. With the help of features like add-ons and additional riders, one can easily elevate their basic plan with limited coverage to cover more risks. Some of the features that policyholders should defiantly look into are:

• Zero depreciation, as it covers the full cost of parts without depreciation.
• Roadside Assistance can help during breakdowns, fuel runs, or flat tyres.
• Engine Protection, providing coverage for water damage and oil leaks.
• Return to Invoice lets the policyholder get the full invoice value if the bike is stolen or totalled.

FAQs

Can I skip buying insurance if I don’t ride often?

No. Indian law mandates at least third-party insurance even if your bike is unused. It’s illegal to keep an uninsured vehicle on public roads.

What happens if I let my policy lapse for a year?

You’ll lose your NCB and need to buy a new policy, possibly with an inspection. Premiums may also be higher due to the gap.

Can I change insurers at renewal and still keep my NCB?

Yes. Your NCB is transferable between insurers. Just obtain and share the NCB certificate during policy switch.