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Rising Third-party Bike insurance Premium

By Finserv MARKETS - Aug 20,2019
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Two Wheeler Insurance premium rate hiked

Do you own a two-wheeler? If yes, then you might as well take a two-wheeler insurance and secure your bike financially from accidents and damage. So, in case of loss due to natural tragedies or the motorcycle is stolen, the bike insurance company will pay off the damage expenses.

Ever wondered why it’s essential? As a matter of fact, according to the Motor Vehicle Act of 1988, every two-wheeler owner in India needs to have a third-party two-wheeler insurance policy.

Generally, two-wheeler insurance comes in two types –

  1. Comprehensive Insurance
  2. Third-Party Insurance

In India, it is mandatory to have a third-party insurance policy under your name. However, you can opt for comprehensive policy cover as well, especially since it provides protection against damage, third-party liabilities, theft, and personal accidental coverage.

A third-party bike insurance online policy will pay off the damage expenses caused to other people, vehicle, or property due to your insured bike. The plan also compensates for theft, accidents, natural disasters, and unforeseen damages. Additionally, you can benefit from features like –

In fact, most motor insurance companies offer two wheeler insurance renewal online, thus making the task of renewing your bike insurance easy.

Lately, there have been certain amendments made to the existing third-party bike insurance guidelines. The proposed rules are as explained further.

Proposed Third-Party Insurance Guidelines (w.e.f. from June 16, 2019)

The Insurance Regulatory and Development Authority of India (IRDAI) has made amendments in the third-party bike insurance premium rates for the current financial year (2019-20). According to the proposed premium rates, you are most likely to pay more towards your bike/car insurance policy after June 16, 2019.

Concerning the current amendments, the insurance companies across India have made sure that the third-party motor insurance is readily available online to the people in need. Further, any complaints in the unavailability of the policy online or denial of the coverage can get the insurance companies in some serious troubles.

To help you understand the proposed third-party motor insurance rates, consider the following comparison table.

Vehicle Description 75cc or below Between 75cc and 150cc Between 150cc and 350cc Beyond 350cc
Existing Premium Rates Rs. 427 Rs. 720 Rs. 985 Rs. 2323
Proposed Increase In Rates 12.88% 4.44% 21.11% No Change
Premium Charges (effective from June 16, 2019) Rs. 482 Rs. 752 Rs. 1193 Rs. 2323

The Third-Party Premium Charges for Two-Wheeler Insurances

The above table shows that premium charges for vehicles with engine capacity 75cc and less have increased from Rs. 427 to Rs. 482. For vehicles with engine capacity of 75cc to 150cc, the premium is Rs. 1,193 instead of Rs. 985. Whereas, the premium rate for vehicles with engine capacity of more than 350cc has not changed (remains Rs. 2323).

A Final Thought

In India, it is mandatory to have a third-party two wheeler insurance. Not having one can cost you penalties or revocation of your driver’s license (in extreme cases only). You can visit Finserv MARKETS to know more about the two -wheeler insurance policy.

The two wheeler insurance plans from Finserv MARKETS allows you to benefit from features like cash-free servicing and hassle-free renewals. Moreover, get you can also get 24*7 spot/roadside assistance.

So, why wait? Apply for two Wheeler Insurance Two Wheeler Insurance with us, today!

Read our top blogs to know more about bike insurance in India:

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