How to Change Two Wheeler Insurance

When it comes to insurance, the owners of two-wheelers are compulsorily required to own a two-wheeler insurance for their scooter or bike, as per the Indian Motor Tariff. A two-wheeler insurance cover is designed to offer coverage against financial expenses incurred by the vehicle owner in an accident or a mishap. However, insurance can not prevent accidents, but can only offer a financial cushion in case of adverse events, therefore, authorities want all the vehicles to be insured as a compulsion.

As per the Insurance Regulatory and Development Authority of India (IRDAI), new two-wheelers should be insured for a period of five years in one go and no annual third-party covers are unavailable for new two-wheelers. Irrespective of the plan you have, you always have a choice to switch insurers and insurance policy, if you find some flaws in the existing one. The changes can be made as per the terms and conditions of the plan as the coverage provided to policyholders is based on the type insurance policy they hold.

Let’s go through the types of two-wheeler insurance plans for better understanding.

Types of Two-Wheeler Insurance Policies

Two-wheeler insurance covers are of different types and can be categorised as follows:

1. Third Party Liability Policy

The third-party insurance policy offers coverage against financial liabilities which you may incur towards a third party for bodily injuries, death or property damage due to an accident with your two-wheeler. In addition, a personal accident cover can also be opted as a part of this insurance policy.

2. Standalone Own-Damage Policy

The standalone own-damage is a bike insurance cover, which gives you financial security to bear the expenses incurred due to any damage or loss incurred by your own bike in an accident or a mishap such as theft, riots, natural calamity and so on. It also allows you to include add-on covers in the plan.

3. Comprehensive Two-Wheeler Insurance Policy

The comprehensive bike insurance provides an own damage cover along with the third-party liability cover and personal accident cover. This policy offers a higher level of coverage compared to the third-party insurance cover. You can opt for add-on covers with this policy too to extend your coverage.

How to Change Two-Wheeler Insurance Cover

Many people purchase a two-wheeler insurance plan in a haste to avoid legal troubles or opt for a policy for its low premium without analysing their coverage requirements. In such incidents, after using the plan for some time, the policyholders might realise that their existing plan is insufficient and they need a different insurance cover. Hence, listed below are the ways through which you can easily change your two wheeler insurance plan:

1. During the Policy Renewal

This is the most common time to select a different two-wheeler insurance cover. A plan is an agreement between insurer and policyholder for a certain period of time and after the completion of that period, the contract gets over, which makes you free to opt for a different policy either from the same insurance provider or from some different insurer. If you already have a comprehensive plan and you seek extended coverage, in such case you can also opt for some add-on options during the renewal process. Renewing your policy is a simple process which needs minimum documentation.

2. During the Policy Period

You can change your two-wheeler insurance policy during the policy period also by intimating the insurance provider. After buying a new cover, you will be required to cancel your previous policy. As holding a two-wheeler plan is mandatory, hence, you must ensure that you don’t cancel the existing policy before the coverage of the new cover is activated. However, you cannot cancel your present insurance plan or change your insurance company after making a claim.

3. Change in the vehicle

If you have bought a new two-wheeler vehicle, then you can easily switch your insurance cover from your old vehicle to the new vehicle. Since, the market value of your new vehicle would be different from your old vehicle, the insurance company will recompute the Insured Declared Value (IDV) and re-examine the risk involved in offering you a fresh insurance coverage. In accordance to these, there could be changes in the amount of premium payable.

4. Change of Ownership

If you sell your two-wheeler vehicle, in such case you are allowed to transfer your insurance policy which is in your name to the new owner. However, to implement this change you will have to share relevant details with your insurance company and acquire a certificate from the insurer in relation to the transfer of insurance policy.

5. Lapsed Policy

A lapsed insurance policy is nothing but an expired insurance policy, which is a result of the failure of the policyholder in renewing the insurance cover within the specified due date. If you want to renew a lapsed insurance plan, you will need to get in touch with your insurance company and intimate them about your situation. Generally, the insurance providers arrange a surveyor and conduct a survey of the vehicle which has to be reinsured. During this time, the insured person can also change the type of plan or can buy a policy from a different insurer as well.

Take Away

Two-wheeler insurance plans can easily be changed at any time i.e., during the policy term or even after it. The above mentioned points will give you an idea of situations in detail as when you can change your two-wheeler insurance plan. However, you must check for various options available before opting for a plan so that you can find the most suitable cover as per your requirements.

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Disclaimer: 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.

Add-on Covers For Your Bike Insurance Policy

  • Zero Depreciation

    Like other assets, the value of your two wheeler also depreciates constantly with time and the liability of this expense by default rests with the policyholder. A zero depreciation add-on protects you against the depreciation expenses incurred by your bike. Thus, if you opt for a zero depreciation cover, depreciation expense of your bike is not deducted from your claim amount at the time of a claim settlement. This add-on is available with comprehensive bike insurance plans as well as standalone bike insurance plans. This is one of the most popular and recommended bike insurance add-on covers.

  • Invoice Protection

    In case of total loss (more than 70% damage) or theft of your bike, the insurance company pays you the Insured Declared Value of your bike as compensation. However, this Insured Declared Value (IDV) is less than the invoice price which you pay at the time of purchasing your bike. The Invoice Protection add-on cover helps you claim the Invoice Price, i.e. total ex-showroom price of your bike plus taxes plus registration charges, of your bike in case of total loss or theft of your bike.

  • NCB Cover

    No Claim Bonus is the reward which is given to the policyholder for not making any claim during the policy period. This reward is offered by the insurer in the form of a discount on the own-damage premium of the bike insurance policy at the time of policy renewal. The NCB ranges from 20% to 50% of the own-damage premium depending on the number of claim-free years. However, if you make even a single claim during the policy period this NCB gets lost. But, with the NCB Cover, you can keep your NCB intact even after making a claim during the policy period.

  • Engine Protection Cover

    The damages incurred by the engine of the two wheeler are by default not covered under a bike insurance policy. However, if you opt for an Engine Protection Cover, the insurer will be liable to compensate you for damages incurred by the engine of your bike such as damage due to leakage of lubricants, water ingress, hydrostatic lock, damaged gearbox, broken crankshafts or pistons and cylinders. The repair cost of the internal engine parts is often high and can sum up to thousands of rupees or more. Thus, addition of this add-on to your comprehensive or standalone 2 wheeler insurance policy can save you from these expenses.

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