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Bike Insurance FAQs

Team AckoNov 5, 2024

Contents

Whether you have an old or new bike, having a third-party bike insurance policy is mandatory in India. In addition to a third-party policy, you can also consider buying a Comprehensive or Standalone Own-damage Bike Insurance policy to ensure extra protection for your bike. Moreover, there are certain factors you need to keep in mind, such as NCB, IDV, age of the two-wheeler, and a few more. Now, if you have been planning to get a new bike insurance policy and have a few queries, scroll through the section and learn more.

Know More About Two-wheeler Insurance Policy

What are the different types of bike insurance policy?

There are three types of bike insurance policy: Third-party, Standalone Own-damage, and Comprehensive Bike Insurance.

What risks are covered under an Insurance policy for bike?

A bike insurance policy typically provides coverage for third-party liabilities, bike thefts, and any damage to the bike due to unforeseen circumstances.

Is two-wheeler insurance mandatory in India?

Yes, you need to have at least a third-party bike insurance to legally drive your bike in India.

Is the No Claim Bonus transferable?

Yes, No Claim Bonus is transferable if you want to choose a different insurance company at the time of two-wheeler insurance renewal.

Can I transfer my two-wheeler insurance if I sell my bike?

Yes, it is important to be proactive about transferring insurance while selling your bike. You can transfer the two-wheeler insurance policy in the name of the buyer when you sell your bike.

Which documents should I carry while riding my bike?

You need to carry the following documents while riding your bike on Indian roads.

Valid Driving License
Pollution Under Control (PUC) certificate
Bike’s Registration Certificate (RC)
Photocopy/printout/soft copy of your active two-wheeler insurance policy

Ensure that all the documents are up to date. They shouldn’t be expired. If you are carrying physical copies, make sure to keep them safe from getting damaged. Along with the physical copies, it is better to keep soft copies of the documents as well.

Should I purchase two-wheeler insurance for my second-hand bike?

Yes, purchasing two-wheeler insurance is mandatory for new as well as old bikes as per The Motor Vehicles Act, 1988.

What to do if a vehicle meets with an accident outside the area / city / state from where policy is issued?

Any motor policy is serviceable pan India irrespective of where the policy is purchased. Beyond city limits, you will not have a pick up and drop facility. Contact Center will suggest a network garage/workshop. An external surveyor will be appointed for the assessment of loss.

In a partial theft case, is FIR mandatory?

Yes, FIR / Police intimation is mandatory in partial theft.

Once available, can Add-ons be added in the middle of the policy period?

Yes, you can add Add-ons in the middle of the policy. We may need to inspect your two-wheeler in case of some Add-ons.

What is the difference between a Third-party Liability Insurance and a Comprehensive Two-wheeler Insurance policy?

A Third-party Liability insurance policy is mandatory as per The Motor Vehicles Act, 1988. It is designed to help third parties that might be affected by your bike in case of an accident. On the other hand, a Comprehensive bike policy includes the mandatory Third-party Liability insurance and offers wide insurance coverage for your vehicle. With a Comprehensive policy, your vehicle will be insured against risks such as accidents, theft, calamities, etc.

Is two-wheeler inspection necessary all the time?

Two-wheeler inspection is not necessary all the time. However, your bike might need an inspection if there is a break between your policy expiry date and your policy renewal request.

How will the depreciation of vehicle parts be calculated?

Depreciation will be calculated as per following:

Rubber, Nylon, Plastic Parts, Tires and Tubes, Batteries, and Air Bags: 50% depreciation
Fiberglass components: 30% depreciation
All parts made of glass: 0 depreciation
Material cost of the paint in case of a paint job: 50% depreciation

Note: If a consolidated amount is charged for the job, then 25% of the total cost will be considered as the material cost.

Is there a limit on the number of add-ons I can purchase?

You can purchase any number of Add-ons, there’s no limit. However, it is advised that you buy only those Add-ons that meet your requirements. This will help you to keep your two-wheeler insurance premium from rising, as Add-ons increase the premium.

Which is the best type of bike insurance?

There’s no one standard plan that can be termed as the best option as every policy seeker’s requirements might be different. However, a comprehensive plan does provide adequate coverage since it covers both - Third-party liabilities and Own Damage i.e. damage to the insured bike. Also, with this type of bike insurance, you can choose suitable Add-ons that can extend the scope of your policy. Here’s a list of different types of two-wheeler insurance policies you can purchase.

Third-party Liability
Comprehensive Two-wheeler insurance policy

Here are two variations of the plans.

Comprehensive Two-wheeler insurance policy with Add-ons
Long-term policy with the above-mentioned coverage

Where can I check the exclusions of a bike insurance policy?

The exclusions of a bike insurance policy are mentioned in detail in the policy wordings. It is extremely important to read and understand the exclusions of your bike insurance plan before purchasing the policy. If there are any doubts pertaining to exclusions in your bike insurance policy, it is suggested to get them clarified. Here’s a list of common exclusions when it comes to raising a two-wheeler insurance claim.

Riding under the influence of intoxicating substance
Riding without an active insurance policy
Riding without a valid driving license
Damage due to nuclear risks
Damage due to war

Why is it important to declare the correct IDV?

IDV i.e. Insured Declared Value of your bike acts as a base when it comes to calculating the cost of your bike insurance policy. If you declare a higher value, the cost of your policy will also increase. On the other hand, if you set a lower IDV, you may receive a lower claim amount in case of total loss. Thus, it is important that you set the correct IDV while buying the policy.

How to transfer two wheeler insurance ownership?

Transferring two-wheeler insurance ownership is a crucial step to be followed in the bike transfer process. Whether you are selling the second-hand bike or buying one, it is better to complete this process at the earliest. Here’s the process for transferring two-wheeler insurance policy.

Download Form 29/30 for seller/buyer
Fill the form and submit to the Regional Transport Office (RTO)
Attach relevant documents with the form as requested (if any)
Get a receipt from the RTO for the forms and proof of sale
Share the receipt with your insurance company
Make payment (if any)
Receive policy in email/courier

Common Terms Used in Bike Insurance

What is the meaning of depreciation in bike insurance?

Depreciation means the reduction in the value of an asset due to wear and tear over a period of time. With regards to two-wheeler insurance, this value is calculated as per the depreciation rates provided by the Insurance Regulatory and Development Authority of India (IRDAI).

What is the meaning of IDV?

IDV means Insured Declared Value. It is the value you will receive in case your insured two-wheeler suffers total damage or is stolen. Note that It is not your bike’s resale value.

What is the meaning of the Policy Period?

Policy period is the duration for which your insurance policy is active. Make sure to renew your two-wheeler insurance before the expiry of the policy period to stay insured and avoid legal hassles.

What are add-ons in two wheeler insurance?

Add-ons are additional covers that you can purchase to strengthen your Comprehensive Two-wheeler Insurance policy. Add-ons usually cover risks that are not covered under a standard Comprehensive policy. Make sure to go for Add-ons that meet your requirements and enhance your insurance coverage.

What is the meaning of bike insurance deductible?

IconDeductible means the amount of money payable by you in case of a claim. There are two types of Deductibles, Compulsory and Voluntary. Compulsory Deductible is a nominal amount that you have to pay. By opting for Voluntary Deductible, you tell the insurance company that you will be paying Compulsory + Voluntary Deductible in case of a claim. This is done to reduce the insurance premium. A voluntary deductible might help in reducing the cost of a bike insurance policy but it also results in a lower claim amount in case of damage.

What is the meaning of No Claim Bonus?

No Claim Bonus is a discount given to you by the insurance company while renewing your two-wheeler insurance policy. It is a bonus/reward for not raising a claim during your policy period.

What does ‘cashless' mean in Cashless Garage?

Insurance companies have tie-ups with garages for smooth processing of claims. Such garages are referred to as network garages. If you get your bike repaired from a network garage, you can avail cashless repairs. In this process, you do not need to worry about collecting physical bills, submitting the paperwork for raising a claim and paying money upfront. Your insurer coordinates with the garage, making the process hassle-free for you. Note that the process is not 100% cashless claim, as you have to pay the deductible amount.

What is zero depreciation in bike insurance?

Zero Depreciation is an Add-on that you can purchase with a Comprehensive two-wheeler insurance plan. Usually, when you raise a claim, the insurance company first deducts the applicable depreciation (reduction in value due to wear and tear) amount from the claim amount and then settles the claim. With this Add-on, the depreciation amount will not be taken into account and you shall receive a comparatively higher claim amount. Note that your bike insurance premium will increase if you include this Add-on in your plan.

What is comprehensive bike insurance?

As the name suggests, Comprehensive bike insurance offers a wide-ranging cover against natural and man-made calamities, fire, theft, and accidents. It includes the mandatory Third-party Liability coverage so that you stay on the right side of the law. Besides, it also offers Personal Accident Cover of Rs. 15 lakhs. You also have the option of purchasing suitable Add-ons for enhanced coverage along with a Comprehensive bike insurance policy.

What is third party insurance for bike?

Third-party bike insurance or Third-party liability insurance as it is commonly referred to is a mandatory insurance policy that covers third parties involved in a bike accident. In insurance parlance, the policyholder is the first party, insurance company is the second party and others affected by a bike accident are referred to as a third party. This policy insures third party injuries, damage to property, and loss of life.

What are cashless and non-cashless claims in two wheeler insurance?

There are two types of claims in two-wheeler insurance; cashless and non-cashless (reimbursement claims). A cashless claim is a process where you just have to pay the deductible amount, and the rest of the repair bill is settled between the insurance company and the garage. In case of a non-cashless claim, you will have to pay the entire garage bill upfront, and then apply for a reimbursement from the insurance company. The insurer will conduct its due diligence, and settle the claim after factoring-in the deductible amount along with other applicable charges.

Bike Insurance Premium FAQs

How can I avail discounts on my two-wheeler insurance premium?

You can avail discounts on your two-wheeler insurance premium by:

Installing anti-theft devices certified by the Automotive Research Association of India
Opting for Voluntary Deductible
Keeping your No Claim Bonus intact

How can I reduce my bike insurance insurance premium?

Here are some tips to reduce insurance premium of your two-wheeler insurance policy.

Install anti-theft devices certified by the Automotive Research Association of India (ARAI)
Select only suitable Add-ons
Choose appropriate Insured Declared Value (IDV)
Buy two-wheeler insurance directly from the insurer to avoid paying any commission
Ride safely and accumulate the No Claim Bonus (NCB), which is a discount offered by the insurer to the policyholder during policy renewal for not raising a claim during the previous policy period.

How do insurance companies determine the two-wheeler insurance premium?

Insurance companies primarily determine two-wheeler insurance premium based on the make, model, age, and registration location of your bike. Your two-wheeler insurance premium is also dependent on the type of policy chosen and your claims history.

Is it okay to add tentative information while using a two-wheeler insurance premium calculator?

A two-wheeler insurance premium calculator calculates the premium based on the input provided. Your two-wheeler insurance quote will depend upon your vehicle, deductible amount, Insured Declared Value (IDV), number of Add-ons, etc. Entering tentative information will not result in the most accurate calculation. Thus, you need to add accurate information in the calculator to get the most relevant quote.

How does bike modification impact two-wheeler insurance policy premium?

Usually, modifications increase the value of your bike. They will affect the cost of its insurance policy if you choose to insure the modifications. Thus, modifications to the vehicle might increase the premium amount, depending on your choice to get them insured.

How two wheeler insurance premium is calculated?

Two-wheeler insurance premium mainly depends upon the type of policy chosen. Premium for Third-party Liability only policy is stated by the Insurance Regulatory and Development Authority of India (IRDAI). Insurance companies have individual pricing for Comprehensive plans based on the following steps.

Build a base price depending on engine capacity (CC) for Third-party coverage
Personal Accident cover
Number of Add-ons
Factor-in depreciation based on manufacturing year
Check for No Claim Bonus and risk profile from claim history
Analyse risk associated with the shared PIN code
Match premium as per Insured Declared Value

Bike Insurance Claim & Renewals

How many times bike insurance can be claimed?

There is no limit to the number of times a bike insurance claim can be made. However, it is advisable not to raise multiple claims and keep the No Claim Bonus (NCB) intact.

How to raise a two-wheeler insurance claim?

You can raise a claim by logging in to your Acko account. You can also raise a claim by calling or sending an email to our support team. Here’s how you can raise a two-wheeler insurance claim.

Visit www.acko.com
Login to your Acko account with your mobile number
Click claim now
You also have the option of going for Instant Settlement

Feel free to call 1800 266 2256 (toll-free) or send an email at [email protected] if you have any queries regarding raising a two-wheeler insurance claim.

Is the two wheeler insurance claim process time bound?

Yes, the two-wheeler insurance claim process is time bound. The insurance companies expect you to intimate them about an accident as early as possible. However, in certain cases the deadline can be extended by the insurer. The timelines followed vary from one insurer to another. From a policyholder’s point of view, one should call the insurance company at the earliest and acquaint oneself with the process to be followed regarding claim settlement.

Can I raise a claim if my two-wheeler is involved an accident during the grace period?

No. Your insurance policy becomes inactive if it is not renewed on or before the expiry date. An inactive policy does not offer any coverage. Thus, you are not covered against risks in the grace period.

What happens when I renew two-wheeler insurance in time?

Here’s a list of benefits associated with timely two-wheeler insurance renewal:

Your bike’s policy stays active
The bike stays insured
You are eligible for No Claim Bonus if no claims are raised
You do not have to face bike inspection
Charges associated with a break-in policy are not levied

What is the role of the surveyor in the claim process?

When you raise a claim, your insurance company will send a surveyor to carry out an inspection in order to understand the extent of damage caused to your bike and to other vehicles (if applicable). The surveyor will submit the report to the insurance company for further processing.

Can one make a claim if the insurance policy had expired a day before the accident took place?

No, it is not possible to raise a claim when the policy is not active. This makes it important for you to renew your bike insurance policy in a timely manner.

Can one claim for expenses incurred to treat personal injuries?

One can claim for permanent injuries as per the terms and conditions related to the Personal Accident Cover.

What documents are required to file a claim in two wheeler insurance?

The exact documents required to file a two-wheeler insurance claim will depend upon your policy and the kind of damage faced. However, here’s an overview of the list of documents that are required to file a two-wheeler insurance claim.

Active insurance policy document
RC book
Active Driving License
First Information Report (FIR) as filed with the local Police
Photos clicked at the time of accident
Any other supporting documents

How can I renew expired bike insurance policy in case of break-in of my policy?

The bike insurance renewal process in case of a break-in policy is same as the normal renewal process, except the bike inspection step. Depending upon the gap between policy expiry and new policy start date, the company might want to inspect the bike before renewing the policy. The exact duration varies as per company policy. Here are the steps to follow to renew bike insurance policy in case of break-in period.

Visit website
Share personal and bike-related details or Login and renew
Co-ordinate time in case of bike inspection
Complete payment after inspection report is positive
Verify details
Download policy

How to renew bike insurance online?

Here are the steps to follow to renew bike insurance online

Visit insurer’s website
Share personal and bike-related details
Select plan
Choose Add-ons (if needed)
Make payment
Download policy

One should compare and buy insurance online to ensure extensive coverage at an affordable price. You can compare policies offered by other insurers as well as plans offered by one insurer. Make sure to read the policy document carefully before making the online payment.

ACKO Bike Insurance FAQs

How to change my two wheeler insurance policy details at ACKO?

It is suggested to check policy details as soon as you receive the document and initiate the changes at the earliest (if needed). You can change your policy details by getting in touch with us on email at [email protected] or on call at 1800 266 2256 (toll-free). Here are the steps to change your two-wheeler insurance policy details.

Initiate change by calling support team
Share details such as name, policy number, etc.
Convey the changes that need to be made
Comply with additional requirements (if any)
After approval, download new policy by logging in to your Acko account
Verify details

How will ACKO resolve claims beyond city limits?

Beyond city limits, you will not have a pick up and drop facility. In such a case, Contact Center will suggest an ACKO network garage/workshop. Once your vehicle is dropped at the garage/workshop, an external surveyor will be appointed for loss assessment.

How does ACKO offer lower prices as compared to others?

The prices are low because we spend a lot less on running an insurance company when you buy directly from us. We pass on the savings to you so that you can avail best insurance at a lower price.

Will ACKO charge me extra for towing my bike to the garage?

No. You will not have to pay extra for towing your bike to the garage.

How can I get a quote for a bike insurance policy from ACKO?

You can easily get quote of your bike insurance policy by visiting www.acko.com. All you need to do is to enter basic information like the registration number of your bike, details related to your bike’s previous insurance policy and number of claims (if any), the IDV of your bike, etc. and the website shall instantly generate a quote.

How can I check the status of my two wheeler insurance policy on ACKO?

Here’s how you can check the status of your two-wheeler insurance policy.

Login to your ACKO account using mobile number
View policy or download policy for future reference
Check policy status

If you face any issues while logging in, you can refer to the policy sent in your email inbox (after purchasing) to check the policy duration. You can simply call our customer support team on 1800 266 2256 (toll-free) or send an email at [email protected] for assistance.

How to find my bike insurance policy number on ACKO?

Your bike insurance policy number is referred by the insurance company for administrative and claim-related purposes. Here’s how you can find your bike insurance policy number.

Your bike insurance policy number will be mentioned in your policy document
To view your policy document, you can login to your ACKO account and view details
You can also search your inbox for the bike insurance policy and check your policy number
You can call our customer support team on 1800 266 2256 (toll-free) or send an email at [email protected] for assistance.