Two-wheeler insurance is a mandatory type of insurance that falls under the General Insurance Product category. It protects the people against any unforeseen occurrences such as accidents, any severe damage to the vehicles that take place on the road. A two-wheeler insurance plan insures the pillion, the rider, and the third parties. To purchase the cheapest two-wheeler insurance, the person must check and compare the insurers.
While the mandatory cover is provided by the third-party or the TP insurance cover, a few changes in getting insurance for two-wheelers can be noted. To know more about these two-wheeler insurance rules, click here.
Stand Alone Policie
The compulsory Personal Accident Cover or PAC that has been unbundled by the IRDAI has been effective since the 1st of January, 2019. The issue of a standalone policy has been permitted. This suggests that a person having a PAC of the minimum value of Rs. 15 lakh does not need to pay for it again. This can help in buying the cheapest two-wheeler insurance. A person does not need to buy a PAC cover twice in case he owns a standalone PA cover or another bike where the owner or driver has already taken the PA cover.
This will help in reducing the total cost of owning a vehicle. Previously, both two-wheelers and cars would require a payment of Rs. 750 every year for CPA cover. Now, this amount can be saved if a person owns this cover for a standalone personal Accident.
Enhancement of Coverage for Personal Accident Cover (PAC)
The coverage for a personal accident has been enhanced by the IRDAI from Rs. 1 lakh to Rs. 15 lakhs. Similarly, the annual premium amount has also been changed. Previously, it was Rs. 50 for a Rs. 1 lakh cover, and now it is Rs. 750 for a Rs. 15 lakh cover. It ensures the provision for buying a one year PAC as the owners cannot be forced to purchase long term PAC by the insurers.
Two Wheeler Insurance for a Long Term
For bikes newly purchased after the 1st of September, 2018, it requires the payment of a third party premium for five years. The IRDAI has mandated this TP (Third Party Cover). While owners who have purchased bikes before that date can continue their payment as before, this cover is the only Third-Party Premium that has been fixed based on the vehicle’s capacity, by IRDAI.
Along with these, the Annual payment of the Own Damage (OD) premium can still be made. The upfront cost will increase, leaving the premium as it is. The Third-Party Premium is not to be paid if the 5-year premium upfront has been paid.
These changes leave the bikers with two options: a Bundled Policy or a Multi-Year Long Term Comprehensive policy. If a person wants to pay the premium for a year and renew it later for the next years, he can go for the bundled policy. If a person wants to go for a premium for five years and the renewal can be done only after five years, the long term comprehensive policy can be taken.
This article provides the reader with important updates relating to two-wheeler insurance. Thus, readers can decide which one to go for. The new provisions introduced by the IRDAI can prove beneficial for the people and can reduce the price of two-wheelers. This will help in buying the cheapest two-wheeler insurance. The no-claim bonus and the Insured Declared Value (IDV) is not impacted by the recent changes.