Two-Wheeler Insurance


In India IRDA (Insurance Regulator and Development Authority) is the highest body that charts out the bike and car insurance-related rules and regulations. It also overlooks the operations of the insurance companies, and ensures an orderly conduct.

As a bike owner, you must be aware of the latest two-wheeler insurance rules so that you strictly follow them and be on the right side of the law. If you fail to follow the rule or break any rule, you may have to pay a hefty fine.

If you have recently purchased a new bike and a new policy, here are some of the important and latest rules you must know–

General Two-wheeler Insurance rules

As per IRDA, all bike owners in India must compulsorily have at least a third-party bike insurance policy. Riding without a valid insurance coverage would attract a fine of Rs. 2000 or you may face an imprisonment up to three months or both.

According to the Insurance Regulatory and Development Authority, if the rider does not cooperate with any authorities, they will be charged an additional fine of Rs. 2000. So, if you are stopped by any traffic or road authorities, make sure to cooperate with them.

You must always carry a copy of the valid two-wheeler insurance policy with you while riding on public roads. Apart from the insurance papers, you must carry a two-wheeler driving licence, PUC (pollution under control certificate), and a registration certificate copy.

Rules regarding two-wheeler insurance renewals

IRDA has laid out specific rules fortwo-wheeler insurance policy renewal, which are:

The policy must be renewed on time, i.e., on or before the due date to continue getting the coverage.

If the policy is not renewed or expired, as per IRDA mandate, the insurance company reserves the right to deny the claim and not pay any compensation to the policyholder. This includes the accidental damages occurring during the grace period.

If the policyholder fails to renew the bike insurance policy within 90 days from the expiry date, they will lose accumulated NCB (no claim bonus), and cannot claim it upon renewal subsequently.

Rules regarding two-wheeler insurance grievance redressal

IRDA has defined a specific time period for all insurance companies to address the policyholders’ grievances so that they can be resolved on time without any delays. Here are the timelines for grievance redressal.

Complaint type Deadline
Acknowledgement of the grievance raised by the policyholder Three working days
Resolution for grievance 15 working days
Cancellation and processing bike insurance 15 working days
Claim settlement 30 working days

So, when you buy an affordable car insurance online, you must be aware of the above timelines. If the insurance company fails to adhere to these timelines and does not resolve your issue, you can approach IRDA and file a complaint against the respective insurance company.

Rules for calculating depreciation

Typically, when you file a claim, the insurance company deducts the depreciation before paying the compensation. To ensure that all policyholders get fair compensation, IRDA has laid down specific guidelines for computing the depreciation of two-wheeler parts.

For all components made of fibreglass, the depreciation rate is 30%

The depreciation rates for two-wheeler parts like batteries, components made out of plastic, tyres, and tubes is 50%

The components made out of glass do not incur any depreciation

The depreciation rate for metal parts is calculated as per the policy terms and condition

Final Word

The IRDA two-wheeler insurance policy rules and regulations discussed above is not a comprehensive list. So, do your due diligence, and research well about the different rules so that you can make the most out of your cost-effective car insurance policy.

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