Two-Wheeler Insurance Companies in India in 2024

Are you currently in the middle of selecting the perfect bike or scooter model? While doing so, you must also spare a thought about the insurance policy for this brand new vehicle.

As per the Motor Vehicle’s Act of 1988, all two-wheelers and cars plying on Indian roads must have valid insurance coverage at all times. Failure to comply with this rule can lead to hefty fines, ranging up to Rs.4000 for repeat offenders.

In most cases, two-wheeler dealerships bundle insurance policies when you purchase a vehicle from them. However, you are free to refuse such an offer and seek your insurance plan directly from the various companies in the market.

Take a look at the list of two wheeler insurance companies in India.

According to the Provisional Motor Vehicles Act 1988, all vehicles on the road require third-party risk insurance; the vehicle owner is involved in insurance for third-party claims regarding an accident resulting in death, bodily injury, or property damage. Below are some things to remember:

• If the provisions of this law are not complied with, then corresponding penalties will be imposed. The later amendments under section 139 of the act allow valid electronic documents such as driving licenses and registration certificates, increasing users' comfort and decreasing paperwork.
• Road transport, vehicle registration and licensing, and traffic rules are regulated by The Motor Vehicles Act 1988, while motor vehicle third-party risk insurance is compulsory, and the driver must display proof of insurance. The Insurance Act of 1938 governs the insurance companies and affects motor insurance indirectly through enforcement and policyholders' rights.
• The legal structure that oversees contracts and agreements in the Indian legal system is the Indian Contract Acts of 1872, meaning motor insurance policies are a legal contract between the insured and the insurer. The Transfer of Property Act 1882 prescribes the laws that regulate the transfer of property rights that are useful when transferring the ownership of the vehicle and the insurance policy formulated with it.

Other Acts like the Road Goods Movement Act and Road Transport Corporations Act apply to commercial vehicles and public transport services.

The Insurance Regulatory and Development Authority of India (IRDAI) released new norms for two-wheeler insurance policies to improve coverage and provide excellent customer protection. Here are some critical updates:

From the above analysis of India's IRDAI rules for two-wheeler insurance, the following significant rules can be deduced:

• Mandatory Long-Term Coverage: All new two-wheelers must be covered for a minimum insurance period of five years from the date of purchase. This rule is intended to guarantee the sustainable insurance of vehicles to minimise instances of uninsured cars on the roads.
• Increased Third-Party Liability Coverage: The claim amount for third-party property damage has been raised from ₹6,000 to ₹1 Lakh. This has made the coverage match the increasing expenses incurred in cases of vehicular accidents.
• Enhanced Personal Accident Cover: The compulsory personal accident scale has been increased to a minimum of ₹15 Lakh. This affords enhanced policy coverage for the policyholders in incidences of accidents leading to death or total and permanent disability.
• Simplified Renewal Process: The consumer protection laws demand that insurance companies send policy renewal notifications to the policyholders. This assists as a reminder for policyholders not to be caught off-guard, enabling them to renew their policies and remain covered at all times.
• Online Purchase and Renewal: The two-wheeler insurance can now be bought and renewed at the comfort of the policyholder's home or office.

A quality insurance plan will provide the following facilities and features. You must keep these factors in mind when picking such protection plans.

Brand Reputation

The first thing to look for is a reputed insurance provider, which has been operating in this sector for a while. Search the company by name on the internet and look at user reviews to assess whether its insurance services satisfy a majority of the clientele. Positive reviews indicate an overall well-rounded experience for existing policyholders.

Insurance Premiums

The amount of money you need to pay to avail a two-wheeler insurance policy is another major factor that often influences decisions regarding the perfect insurer. You can compare the different rates at an aggregator website. However, be mindful of checking the available coverage, alongside the premiums. You need to opt for a policy, providing the best value for money.

IRDAI Approval

The Insurance Regulatory And Development Authority of India is a government body, which oversees the development of the insurance sector in the nation. Choosing from amongst the IRDAI approved companies is best since these companies follow all of the guidelines outlined by the IRDAI, ensuring sufficient benefits for policyholders.

Network Garages

Most two-wheeler insurance companies have tie-ups with several garages throughout India. When a policyholder seeks repairs at such network garages, the entire procedure is cashless. The insurance provider settles the repair bills directly with the garage, without the policyholder having to wait for reimbursements. 

The number of network garages available for a particular insurance company is a relevant factor to consider before opting for a two-wheeler insurance plan.

The Ratio of Claims Settled

The percentage of claims an insurance provider settles out of the total claims it receives is a good indicator of whether the provider is too stringent when settling claims or not. Some companies settle insurance claims without too much of a fuss, while others may require policyholders to jump through hoops to acquire their due compensation.

Convenient and Accelerated Claims Process

People file insurance claims during emergencies. At such a time, you need immediate financial support from your insurer. Therefore, you need to select an insurance company, which does not delay in extending this assistance after you file a claim. Always prefer companies that provide 24x7-customer care support since accidents can happen at any time.

Another common mistake that many consumers make is buying a two-wheeler insurance policy from third-party sources, instead of the insurance company itself. However, purchasing directly from an insurance provider is the wiser move.

Here’s why!

While most people tend to purchase two wheeler insurance plans along with their vehicle from the dealership, doing so may not be too profitable. Listed below are some reasons to acquire such a policy from the insurance provider:

Diverse Choices for You to Select From

Rather than limiting your purchase to a few select insurance companies, buying from insurance companies allows you to compare all available options. Dealerships, on the other hand, only list plans from the insurers with whom they have collaborations.

Customising Policies As Per Your Need

When you buy from a third-party source, you have almost no ability to optimise the coverage as per your requirements since they sell pre-packaged policies. Directly buying from insurance companies allows you to modify policies through riders and additional customisation options, tailoring each plan according to your needs.

Research and Comparison Opportunities

Vehicle dealerships do not allow you the time or opportunity to research the various insurance policies available in the market. Instead, they pick out plans on your behalf. If you decide to avoid such a hurried purchase, you can use the internet to research available plans. Compare the features, premium rates and other aspects of policies before picking the plan, which suits you best.

No Additional Charges

When you buy from dealerships, a part of the insurance premiums you pay is picketed by this mediating party, while the remaining goes to the insurance company. Thus, a commission for the dealership is included in the quoted premium rate. No such additional charges are levied when you buy a policy directly from an insurance provider, as there are no mediating parties in such cases.

Regardless of how you buy insurance plans for your two-wheeler, reading the terms and conditions of such a policy is important. This section of your policy document should help you understand the extent of coverage.

You may also like to read:

• Depreciation in Insurance
• What is an Insurance Deductible?
• General Insurance Companies in India
• List of Insurance Companies in India
• Types of Insurance