Two Wheelers

Click here for Motor Policy A   

A Comprehensive Insurance Policy, which provides reimbursement of expenses incurred in repairs (motor bike/ scooter) due to an accident falling within the scope of policy in addition to the Act Policy as depicted hereunder:

Motor Cycles and Scooters

What is covered?
Covers accidental damages by/ due to:

Fire, explosion, self-ignition or lightening.
Burglary housebreaking or theft
Riot and strike
Earthquake (fire and shock damage)
Flood, Typhoon, Hurricane, Storm, Tempest, Inundation, Cyclone, Hailstorm etc.,
Accidental external means.
Malicious Act
Terrorist Activity
Whilst in transit by road, rail, inland waterway, lift, elevator or air.

What are the additional covers possible?

The Following Add Ons are available:

Passenger Death only cover @ Rs. 7.5/- for a coverage of Rs. 10,000/- (in multiples thereof, to the maximum coverage of Rs. 2,00,000/- per seat/ person for total seating capacity) against compensation to the passenger/ legal heir in case of permanent total disablement/ death claim.

Who can take the policy?

Owners and Financiers of the vehicle having insurable interest in it.

What is the Period of Insurance?

All Insurance Policies are issued for a period of 12 months. The Policies expire at midnight on the date of expiry.
Short Period Policies are also available at the option of insurers for which higher premium is payable.
  

What is the Period of Insurance?

Motor Insurance Policies are issued for a period of 12 months and terminate at midnight on the date of expiry.
Short Period Policies are also available at the option of insurers for which higher premium is payable.
  
When to pay the Premium?

Motor Insurance Policies terminate at midnight on the expiry date. To avoid any uncovered moments and enjoy continous cover, it is advisable to pay the premium on or before the expiry date.

What does the No Claim Bonus (NCB) Mean?

Is an Incentive given to reward safe driving. This is given at the time of renewal by way of discount in Renewal Premium. The Percentage of Bonus increases if there is no claim in the expiring policy and decreases if there is a claim.

What does the Malus Mean?

Is insurers way of charging higher premium for higher risk (unsafe driving). this is charged by way of Loading on the Premium of vehicle by a certain percentage depending upon the claim preferred under the expiring policy.

 
What are the Automobile Association Discounts?

The Insurance Premium is reduced @ 5% of the OWN DAMAGE Premium (Maximum Rs. 30/-) subject to the validity of the Association membership till currency of the Policy.

What is the Special Discount?

The Insured is entitled to a special discount of 5% on the total premium (before Service Tax which is 5%) if the insured company or the financer of the vehicle is having a paid up capital of more than Rs. 10,00,000/-

Minimum Premium

The minimum Premium chargable after all discounts and loading shall not be less than Rs. 100/- except for Third Party Insurance for Motor Cycles and Scooters.

What are Additional Compensations ?

The insurer shall also reimburse Towing charges and spot repairs (actual) subject to submission of documentary evidence. (Maximum of Rs. 300/-)
 

What is the Liability of the insurers with regard to Accidental Claim?
 
In addition to the cover available under Policy A the reimbursement of expenses are limited to the actual amount spent on the repairs of the vehicle, to get the vehicle repaired [Accidented Portion] (including cost of replacements if any) subject to 50% depreciation on the cost of Tyre and Tubes.

What is Additional Compensation ?

The insurer shall also reimburse Towing charges and spot repairs (actual) subject to submission of documentary evidence. (Maximum of Rs. 1500/-)
 
What is the Liability of the insurer with regard to Theft / Total Loss of the Vehicle?
 
In the event of Theft or Burglary of the Vehicle the liability of the insurer is restricted to the Market Value of the Vehicle (average price of the vehicle by make and model) or sum insured whichever is less. Market Price represents the value the vehicle in question would have fetched in the market on the date of loss/ theft.

This provision is also applicable to the vehicles damaged in the accident to the extent beyond repair or beyond ecomonic repairs. As a matter of practise, Insurers decide/ consider total loss on economic grounds when accidental repair cost exceeds 50% of Insured's Estimated Value (IEV) or sum Insured of subject vehicle.

A simple logic to decide this provision is that if the cost of replacement / repairs to the damaged vehicle exceeds 50% of the market value of the vehicle, the claims are settled by the Insurance Company on Total Loss Basis.

What is the Liability of the insurer with regard to Third Party Injury or Death Claims?

Third Party (A person other than Insured and the Insurer) who is injured /dies due to an accident with the Insured Vehicle, the amount of compensation adjudged by the Motor Accident Claims Tribunal is made good by the insurers and is payable to the Legal Heir of the Deceased or the Injured. The amount of compensation is unlimited/ has no preset limit.
All costs and expenses incurred by the insured with Insurer's written consent.

What is liability of the insurers with regard to Third party Property Damage?

The compensation payable to Third Party for damage to its property (moveable or fixed) is restricted to Rs. 6000/- {Rupees Six Thousand Only}, irrespective of the amount adjudged by the Motor Accident Claims Tribunal/Court. This compensation limit can be increased to Unlimited by paying of an additional Premium at the time of taking insurance.

All costs and expenses incurred by Insured with Insurer's written consent.

What is liability of the insurers towards Employee (Other than paid driver) of Insured?

Claims arising out of and in the course of employment of a person in the employment of the Insured are compensated to the extent of Rs.20,000 when an Employee (Other than payed driver) is in the driving seat.

What is Non Idemnifiable /Not Paid?

Consequential loss, wear and tear, mechanical or electrical breakdowns, failures or breakages and

Damage to Tyres, Tubes unless the vehicle is damaged at the same time however the liability of the Insurers for tyres, tubes is limited to 50% of the cost of replacement.

Any accidental loss or damage suffered whilst the Insured or any person driving with the knowledge and consent of the Insured is under the influence of intoxicating liquor or drugs.

When the vehicle is used outside the Geographical Limits stated in the Policy, contrary to the limitation of use.

What are the other options of insurance available?

Policy restricted to cover ACT (policy a)and theft risk only.

The policy is restricted to Third Party Insurance and Total Loss of Vehicle due to Burglary, Theft, Housebreaking including accident following theft.

Policy restricted to cover ACT, fire and theft risk only.

This policy is restricted to Third Party Insurance and total damages due to Fire i.e. Self-ignition etc or Total Loss of Vehicle due to Burglary, Theft, or Housebreaking. including accident following theft

What are the options/ways to reduce the premium?
the risk can be deleted from the Comprehensive Cover and the following discounts; can be availed (although deletions are not advisable as they defeat the very purpose of comprehensive cover):

Deletion of Riot and Strike Damage    Saving (0.15% of the Value of the Vehicle)

A Word of Caution

The exclusion of this risk to save the premium shall not be treated as Comprehensive Insurance in its true sense. The  expenses due to loss / Accident attributed to Riot and Strike, Malicious Damage and Terrorist Activities shall not be payable. To illustrate the effect of deletion:
For Example:
1.) The vehicle is moving on the road in the terrorist inflicted area viz. J&K, Punjab, Assam and its sister states, Darjeeling, Madhya Pradesh, etc and some terrorist hurls a bomb resulting in the damages to the vehicle, the loss shall not payable.
2.) If due to an accident, the mob puts on fire the vehicles, not covered for Riot and Strike, the loss is not payable.
3.) Some miscreant, with a sole aim to put the Insured in loss, damages the vehicle, the loss is not payable.

There may be many more situations, where these losses are not payable. A case - by case variance may take place. Therefore, rethinking is must before deletion.

Deletion of Earthquake    Savings (0.10% of the Value of the vehicle)

A Word of Caution

The damage to vehicle directly attributed to Earthquake, for example had the vehicle been damaged as a result of Earthquake viz LATUR, UTTARKASHI, EARTHQUAKES, The claim in respect of those damages (Total or Partial) were not payable.

Deletion of Flood Savings (0.15% of the Value of the Vehicle)

A Word of Caution

Flood means the natural calamities and includes, Storm, Tempest, Hurricane, Tornado, Landslide etc., if this cover is deleted from the policy the loss directly attributable to these risks is not payable.
For example:
1.) During a storm, the vehicle was parked under a Tree; a branch of the tree fell on the vehicle and damaged it, the expenses incurred for repairing the vehicle is not payable.
2.) If during the Cyclone, the vehicle is washed away the claim is not payable.

The Premium can further be reduced by opting an Excess in own damage portion (Insured will be bearing the first specified amount of claim) and avail the reduction in the premium.