By Ritik Bhagat
Some of our readers have wanted to know how is bike insurance premium fixed? The same thing has been searched by some people by writing the Bike Insurance Price List. In this article, we will explain what is bike insurance premium? How do insurance companies determine this. Which things affect it. And also how much money it takes to buy this insurance at this time (in 2019). We have written this article in September 2019.
Bike Insurance Price List 2019
New insurance insurance vehicles have been implemented from 16 June 2019 on behalf of Insurance Regulatory and Development Authority of India (IRDAI). Which are as follows-
- Bike insurance price of the bike or two-wheeler engine capacity
- Bikes under 75cc capacity 482 rupees
- 75cc to 150cc capacity bike 752 rupees
- 150cc to 350cc capacity bike Rs 1,193
- Bike over 350cc capacity Rs 2,323
Note: These rates of bike insurance are only for third party insurance, which is a mandatory law. If other types of insurance facilities are added to it, then the insurance policy will pay more.
What is a bike insurance premium?
The price that a customer has to pay for any insurance plan is called premium in the language of insurance. In colloquial terms, you can also call Bike Insurance Premium as an insurance installment. This is the amount that you have to deposit at regular intervals to take advantage of the insurance policy. In the case of auto insurance, in general, it is fixed yearly.
How is bike insurance premium fixed?
The increase or decrease of bike insurance premium depends on the following facts-
- What is the main insurance policy like?
- Add-on Covers
- What is the Insured Declared Value (IDV) of the bike?
- What is the engine capacity (CC) of the bike?
- In which category of city is the bike registration?
- What is the year of manufacture of the bike?
- Special Model or Special Use Bike
- Insurer’s age and draw ewing record
- Use of ARAI approved anti-theft devices
- No Claim Bonus Reduces Premium
Now we understand these facts in some detail-…
What is the main insurance policy like?
How is your insurance policy – are you getting third party insurance or comprehensive insurance. The difference between the two types of insurance facilities is as follows-
Third party insurance: The same is called third-party liability. In this, the insurance company takes the responsibility of giving compensation, court case, etc. in case of damage to any other person, vehicle or property from your vehicle. However, there is no help in case of damage to you or your vehicle. It is also legally mandatory.
Comprehensive insurance: In this, you get the facility of third party insurance as well as own-damages insurance. Under own-damages insurance, the insurance company pays compensation if your vehicle is damaged, stolen or destroyed. For the safety of your vehicle, it is better to take it.
Impact on premium: If you get third party insurance, then its premium is less, whereas, premium is higher when you take comprehensive insurance.
Which twins are Add On Covers
In your bike insurance, the more additional insurance cover. You will get added, your insurance premium will also be much higher. For example, Zero depreciation cover. Personal accidental cover, cashless hospitalization cover, etc. can be included as add ons with the main insurance policy.
What is the Insured Declared Value (IDV) of the bike?
Insured Declared Value or IDV is the immediate market price of your vehicle. This is the amount the insurance company pays you if your vehicle is stolen or completely destroyed. The higher the Insured Declared Value of your bike, the higher its premium. Whose IDV will be lower, the insurance premium will also be lower.
What is the engine capacity (CC) of the bike?
The higher your bike’s engine capacity (Cubic Capacity-CC), the higher the insurance premium. The lower the engine capacity, the lower the insurance premium.
For example, the premium for a bike with 75 cc or less engine capacity is currently Rs 569 (in June 2019). However, the premium is Rs 1,019 for a bike with engine capacity of 350 cc or more.
In which city is the bike registration?
If you live in Metro City, such as Mumbai, Delhi, Bangalore, etc., then your bike insurance premium will be higher. Because, traffic is more dense in such cities and there is more possibility of the bike getting damaged. Conversely, if you are registering a bike in a small town, then the premium for insurance will be less.
What is the year of manufacture of the bike?
Premium depends on how old your bike is. As the bike gets older, its IDV decreases. For example, the IDV of a 6-month-old bike is 95 percent of its ex-showroom price. However ,, the IDV of 4 to 5 years old bike remains 50 percent of its ex-showroom price.
Special model or special use bike
Some companies make motorcycles for special category customers. Such as harley davidson. Similarly, some bikes are made for a specific purpose, such as sports bikes. Their prices are very high. Due to this, their Insured Declared Value is also very high. Obviously, the premium for their insurance is also very high.
Insurer’s age and draw eaving record
Insurance companies hire a little more insurance premium for people who do not have sufficient driving experience. Similarly, even if your driving record is not good, the premium will be slightly higher. The premium is slightly higher for male bike drivers of 20 to 25 years and less than 1 year of driving experience.
Use of ARAI approved anti-theft devices
If your bike is equipped with anti-theft devices approved by ARAI (Automotive Research Association of India) then you will get some discount in Insurance Premium. Such as anti theft alarm, safety gear lock, GPS device, etc. This discount can be up to 2.5 percent.
Reduction in premium from No Claim Bonus
After the bike is insured, you get no Claim Bonus in exchange for the number of years you do not Claim. Because of this, the insurance company reduces your insurance premium in the years ahead. The first year No Claim Bonus gives you up to 20 percent discount in Premium. In the sixth year, this exemption reaches 50 percent.
How much have you chosen Voluntary deductible
Voluntary deductible is the portion of the insurance claim that you agree on your behalf. In the event of damage to the vehicle, you have to pay for the repairing expenses equal to the Voluntary deductible yourself. The insurance company pays the remaining portion after the deductible. The more you choose Voluntary deductible, the higher you get the discount in Insurance Premium.
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