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Considering Two-Wheeler Insurance? Know About IRDAI Rules for Two-Wheeler Insurance Policies


Written by Saad Ahmad

Updated May 05, 2022

Consider Two-Wheeler Protection. Below are the IRDAI Rules for Two-Wheeler Insurance Policies. Continue reading to find out more.

Having a supreme authority is necessary for keeping track of every insurance arrangement and ensuring that policyholders are treated fairly. The Insurance Regulatory and Development Authority of India, or IRDA, is the highest authority in charge of insurance-related laws and regulations. IRDA ensures that every consumer receives the correct information, from the introduction of new laws to the determination of rates (for a specific type of insurance).

Considering Two-Wheeler Insurance? Know About IRDAI Rules for Two-Wheeler Insurance Policies

Consider Two-Wheeler Protection. Below are the IRDAI Rules for Two-Wheeler Insurance Policies

What Is the Purpose of It?

The goal of enacting these laws and regulations is to keep the relationship between the insurance provider and the insurance users as smooth as possible. Insurance is a contract in which both parties expect to be treated fairly. To prevent potential penalties, the insured should follow these suggestions while purchasing insurance. Given that, if you are new to the insurance market and have purchased two-wheeler insurance, following guidelines will assist you in making the journey pleasant.

The Coverage Types

The complete two-wheeler insurance policy, according to IRDA requirements, covers the insured vehicle in the following situations:

  • Man-made calamities such as burglary or theft, riot, strike, etc. cause loss or damage to the insured vehicle.
  • Natural disasters such as fire, explosion, lightning, inflammation, earthquake, flood, storm, hurricanes, and so on cause damage or loss.
  • In the event of an external collision, the bike may be damaged.
  • Liabilities owed to third parties as a result of unintentional damage, injury, or death
  • For several automobiles, personal accident coverage of up to Rs. 15 lakh is available.

Exclusions From The Policy

The following ailments are not covered by a comprehensive insurance policy, according to IRDA regulations:

  • Consequential loss, regular wear and tear, age-related deterioration, and mechanical failure
  • Bike tires and tubes are damaged. In the event of a replacement, some insurance provides 50% of the entire cost.
  • Unless the insured vehicle is stolen at the same time, loss of accessories due to burglary or housebreaking.
  • In the event of an accident, if the driver does not have a valid driver's license,
  • While driving under the influence of alcohol or other intoxicating substances, an accident occurs.
  • Any damage that occurs outside of the geographical region is not covered.
  • Any claim for a contractual obligation that arises

Rules For Depreciation

The RDA guidelines also note that the IRDA has some fixed procedures for computing depreciation. The following table shows the percentages of depreciation applied to various parts.

  • Depreciation for fiberglass components is 30 percent, according to the two-wheeler insurance policy.
  • Rubber, nylon, and tube components, batteries, plastic parts, and tires all have a 50% depreciation rate.
  • Glass components are not devalued.

Declared Value Assured

When it comes to determining the premium for a two-wheeler insurance coverage, the insured declared value (IDV) is quite important. In two-wheeler insurance, the IDV is the vehicle's current market value, on which the sum insured is calculated. In addition, the expenses of side accessories and other items are taken into account. Here are a few more important reminders: The depreciation rate also applies to the insured stated value. It is dependent on the vehicle's age. The IDV is particularly important since it is used as the primary price in determining the overall loss.

Take Away

As a buyer of two-wheeler insurance, you should be aware of these criteria. While the aforementioned rules are a basic set of guidelines, you should also review the policy paper. It will assist you in becoming acquainted with the terms and conditions. It is usually a good idea to be aware of the policy's terms and restrictions so that the insurance issuer does not take you for a ride. The terms and conditions described above are written with the insured's safety in mind. They'll come in useful if a claim is filed and the insured receives a prompt payout.

Also read - The Most Important Things To Look For When Purchasing Two-Wheeler Insurance


Written by Saad Ahmad

Saad is a marketing guru and has some exciting knowledge to share about the motor and related industry. Read More


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
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