Rules for two-wheeler insurance coverage from IRDAI
IRDAI regulations apply to all conventional insurance for two-wheeler policies offered by Indian insurers. #
You can use a two-wheeler insurance premium calculator to get an estimated cost of the premium. The two basic categories of two-wheeler insurance coverage and their associated rules are listed below:
- Insurance coverage for third parties
The most fundamental motorcycle insurance plan is third-party liability insurance. The Motor Vehicles Act of 1988 also mandates that all two-wheeler owners carry third-party insurance. However, this insurance policy’s coverage is limited to third-party liabilities, such as those involving injury, passing away, or property damage to a third party. *
- Comprehensive insurance
The legally required Third-party Liability Cover and an Own Damage (OD) Cover are both included in Comprehensive Bike Insurance. The OD portion of the policy gives financial protection against bike theft, as well as against damage to your bike from natural and man-made disasters and accidents. Additionally, this cover can be enhanced with add-ons. *
Types of coverage:
To ensure just and effectiveinsurance for two-wheeler procedures, the IRDAI has established two-wheeler insurance regulations. #
- Third-party bike insurance
As was already indicated, this plan offers the insured financial protection from third-party obligations. *
The following cases talk about what is covered in accordance with IRDAI criteria #:
- The insurance will offer financial compensation in the event that a third party is hurt or demised. The amount of financial compensation will depend on the loss or harm sustained by the third party.
- But if someone passes away, compensation will be determined according to their net worth. This plan will also include two-wheeler insurance coverage for property damage suffered by third parties.
- Comprehensive bike insurance
As was already said, Comprehensive Bike Insurance provides more comprehensive coverage than the plan just mentioned. According to the provisions of the plan, in case of an accident, the insurer will pay for the expense of replacing or repairing bike parts. *
In the event that the two-wheeler is stolen or completely destroyed, the insurer will pay the Insured Declared Value (IDV) of the vehicle. In the event of losses brought on by tragedies, whether natural or man-made, compensation will be paid for bike parts that need to be repaired or replaced. *
Rules for Personal Accident Coverage under IRDAI
We’ll talk about IRDAI regulations for personal accident insurance in this part. A Personal Accident (PA) cover is a legally required insurance policy. It must be purchased individually in addition to your vehicle insurance. In the terrible event that the insured becomes disabled or passes away, it provides a lump payment. * #
A PA cover offers an insured amount of up to Rs. 15 lakhs. A portion of the insured amount will be paid out by the insurer as compensation, depending on the type of loss. *
The following are some of the new IRDAI regulations that were published in 2020 #:
- If the new rules do not clearly state a punishment for an offence committed by a bike rider, a challan for Rs. 500 for a first offence and Rs. 1,500 for a second offence is issued.
- A fine of between Rs. 500 and Rs. 1,000 will be assessed for breaking traffic laws.
- A rider will be fined an additional Rs. 2,000 for their failure to cooperate with the authorities.
- A fine of Rs. 5,000 will be assessed for operating the bike without a valid driver’s licence.
- A rider who continues to ride their bike after being disqualified will be fined Rs. 10,000.
- A Rs. 1,000 punishment is imposed for riding too fast.
- The rider will be required to pay Rs. 1,000 in fines and/or serve six months in jail for reckless driving.
* Standard T&C Apply
# Visit the official website of IRDAI for further details.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.