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HomeAutomotiveFollow These IRDAI Rules Before Purchasing A Bike Insurance Policy

Follow These IRDAI Rules Before Purchasing A Bike Insurance Policy

Amidst concerns over the increased cost of acquisition, India’s two-wheeler sales are predicted to grow at 8-10% in the FY 2019 according to ICRA. boosted sales of two-wheelers can be attributed to increasing per capita income and higher minimum support price. This sector reported YoY growth of 11.1% due to the structural factors, such as –

  1. Favourable demographic profile
  2. Rapid urbanisation, and
  3. Growing middle class.

However, this escalated possession of bikes has led to a considerable increase in the number of traffic accidents. On average, approximately 1.5 lakh people are killed in traffic accidents, and a substantial share of the same involves two-wheelers. While some of them led to fatalities, others led to significant damage to the bike. Hence, having a two wheeler insurance has become all the more necessary today.

Despite the availability of a convenient sum insured under these insurance cover, individuals need to take into consideration multiple factors before settling upon insurance. One such factor is the set of IRDAI rules that helps maintain a smooth rapport between the insurance provider and the policyholder. Violators of these rules may be charged with either imprisonment or a monetary penalty. Additionally, in case one does not follow these guidelines, his/her driving license and vehicle registration can be suspended.

IRDAI rules to follow before purchasing a two wheeler insurance cover

Individuals with financial coverage for two-wheelers need to follow a few basic IRDAI guidelines that help avoid future consequences –

Rule 1: What is the coverage included under a policy?

The types of coverage offered for two-wheelers include –

  • Third party bike insurance
  • Comprehensive coverage

Rule 2: What are the specific situations covered under cases of an accident?

There are a set of specific situations that are covered under the IRDAI in cases of an accident –

  • Right to recovery
  • A liable third-party
  • Rules related to various type of add-on covers
  • Limits of indemnity

Rule 3: What are the types of coverage offered?

Under the comprehensive coverage for two wheeler insurance policies, the following circumstances are financially accounted for –

  • Third-party liabilities emerging out of death, injury, or accidental damage.
  • Loss or damage to an insured vehicle due to man-made disasters that include – riot, burglary, strike, theft, etc.
  • Personal accidents cover of up to Rs. 15 Lakh for insured vehicles
  • Loss or damage due to natural calamities like – flood, hurricane, storm, earthquake, fire, lightning, etc.
  • Damage caused to vehicles in the cases of external accidents. 

Rule 4: What is meant by depreciation rules?

The IRDAI has some set rules that help calculate depreciation. Such depreciation percentage that is applied in the various parts are as follows –

  • No depreciation for glass parts.
  • 30% depreciation for fibreglass components
  • No fixed depreciation for metal parts
  • 50% depreciation for batteries and tyres.
  • 50% depreciation for parts made up of rubber, nylon, tubes, and plastic.

Rule 5: What is the insured declared value?

The insured declared value has a vital role to play, considering that it decides the premium of any bike insurance. It is the current market value of vehicles that determines the sum insured to be availed by a customer.

Rule 6: What is the schedule of depreciation for the insured declared value?

The schedule of depreciation for a two-wheeler insurance policy cover is dependent on the age of the vehicle. The percentage starts with a slab of 6-10 months. As per this, the IRDAI schedule of depreciation is –

  • Up to 6 months = 5%
  • 6 months to 1 year = 15%
  • 1 to 2 years = 20%
  • 2 to 3 years = 30%
  • 3 to 4 years = 40%
  • 4 to 5 years = 50%

The following rules mentioned are merely a part of the IRDAI guidelines. Two wheeler owners, especially those frequenting the road for trips, need to have detailed idea about these rules. They can opt for a Two-Wheeler Insurance Policy from companies like Bajaj Finserv. Additionally, having a road trip insurance will also provide more coverage to vehicle owners.

Karan
Karanhttps://www.goforpost.com
Hi I'm a professional blogger having experience in Digital Marketing And Blogging. My basic research on Finance, tech, health, entertainment, Digital Marketing, and home improvement. I'd like to share my experience with all of you be to connect to explore the knowledge.
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