Thursday 25 July 2024
  • :
  • :

Two wheeler insurance premium calculation

Two wheeler insurance premium calculation

A considerable number of two-wheelers on the Indian roads do not have a valid insurance policy. Absence of insurance in case of unfortunate incidents renders the vehicle owner unable to provide financial remuneration to the victim or their family. That is the reason why it is mandatory under the Motor Vehicles Act of 1988 that all vehicle owners to have a third party liability cover minimum.

There two types of two wheeler insurance:

Third-party coverage – This policy covers the loss and bodily injury because of the accident caused to the third party and external property damages.

Comprehensive policy – It covers risks caused by damage or theft of own two-wheeler as well as damage repair costs for the third party.

It is preferred to buy a comprehensive long term two wheeler insurance. A two wheeler with a long tenure is available for an extended period of time of two to three years to avoid the hassle of going through the renewal process time and time again. It is convenient and, at the same time, lets you enjoy additional benefits.

The long term two wheeler insurance covers you against damages that your bike or scooter may incur due to any unforeseen events. A long term insurance policy helps in reducing the burden of exceptionally high costs that may arise due to damages caused to your bike by the occurrence of an accident, natural disaster and so on.

How to calculate the premium           

Before buying an insurance policy, use an online two wheeler insurance premium calculator. It will help you evaluate your needs and provide the best insurance options. Using a two wheeler insurance calculator is quite simple. You have to provide some information about your bike.

The details required are as follows:

  • IDV of the bike
  • The Cubic capacity of your vehicle
  • Registration zone

IDV (Insured Declared Value) is the cost that you will receive from the insurer in the event of any damage, theft, etc. The insurance providing company calculates it by applying the depreciated rate from showroom’s listed price and it does not cover insurance cost and registration.

How is long term two wheeler premium calculated?

  • Like a regular policy, long term two wheeler insurance gives you the option of including an own-damage cover along with third-party liability protection. The premium is decided accordingly and added features translate to the additional premium.
  • The premium stays the same for the entire period of the policy and remains unaffected by inflation.
  • You will incur no additional premium cost, even if the two wheeler insurance third party premium rates elevate during the policy period.
  • The premium for the entire duration of the policy is paid at its inception. This one time payment saves you from the difficulty of yearly savings for insurance and any policy lapses.
  • No claim bonus does not become zero in the case of one claim during the entire 2 or 3 year policy period.

Free yourself from the trouble of renewing your policy every year and buy a bike using a long term two wheeler insurance.