Two Wheeler Insurance Companies
Bike insurance helps you meet the financial obligations which may arise due to an accident or any other mishap involving your bike such fire, theft, earthquake, landslide, etc. The Indian Motor Tariff makes it mandatory for every Two Wheeler owner to have at least a third party bike insurance cover for being able to ride their Two Wheeler legally in the country. Currently, there are 25 General Insurance Companies in India which offer bike insurance plans.
21+ Best Bike Insurance Companies in India for 2021: IRDAI Approved
Find the key information below in regards to the 21+ best two-wheeler insurance plans with claim settlement ratio & network garages.
| Bike Insurance Company | Motor OD Claim Settlement Ratio FY20 | Network Garages |
| IFFCO Tokio General Insurance | 95.30% | 4,300+ |
| Royal Sundaram General Insurance | 92.66% | 4,600+ |
| The Oriental Insurance Company | 91.76% | 3,100+ |
| HDFC ERGO General Insurance | 91.23% | 6,800+ |
| Universal Sompo General Insurance | 90.78% | 3,500+ |
| Tata AIG General Insurance | 90.49% | 5,000+ |
| The New India Assurance | 89.60% | 3,000+ |
| SBI General Insurance | 89.51% | 16,000+ |
| Bajaj Allianz General Insurance | 88.83% | 4,000+ |
| Future Generali India Insurance | 88.69% | 2,500+ |
| Bharti AXA General Insurance | 87.99% | 5,200+ |
| ICICI Lombard General Insurance | 87.71% | 5,600+ |
| Liberty General Insurance | 87.48% | 4,300+ |
| Cholamandalam MS General Insurance | 85.89% | 7,100+ |
| National Insurance Company | 85.71% | 3,100+ |
| Edelweiss General Insurance | 84.52% | 1,000+ |
| Reliance General Insurance | 84.26% | 3,800+ |
| Acko General Insurance | 83.91% | 2,000+ |
| United India Insurance Company | 82.93% | 3,100+ |
| Kotak Mahindra General Insurance | 82.81% | 1,300+ |
| Go Digit General Insurance | 80.47% | 1,400+ |
| Magma HDI General Insurance | 79.60% | 4,000+ |
| Shriram General Insurance | 77.26% | 2,000+ |
| Navi General Insurance | 76.20% | 900+ |
(Source: IBAI's General Insurance Claim Insights Handbook - 5th Edition.)
How To Choose The Right Two Wheeler Insurance Company In India?
There is no one bike insurance company which is the best for all individuals as the requirement of each individual is different. For some individuals, a bike insurance company which has a wider network of cashless garages is the best, while for others the Two Wheeler insurer which features the highest claim settlement ratio is the best. Thus, there are a number of parameters on the basis of which a bike insurance company becomes the best for an individual. Followings are the factors which you must consider when choosing a bike insurance company:
1. Claim Settlement Ratio
The claim settlement ratio is the percentage of claims settled by a Two Wheeler insurance company out of the total number of claims received by it in a financial year. The higher the claim settlement ratio, the better it is. Thus, you should choose a bike insurance company with a good claim settlement ratio.
2. Network of Cashless Garages
Every Two Wheeler insurance company maintains a network of garages at which it allows cashless claim facilities. While choosing a bike insurance company, it is important to check which all garages (especially the ones in your locality) are a part of the insurer's network.
3. Availability of Add-on Covers
Two-wheeler Insurance add-on covers are the extra covers which can be opted with own-damage and comprehensive Two Wheeler insurance plans to extend the coverage of a standard bike insurance plan. These add-ons are available against the payment of a nominal premium. You must check if the insurance company chosen by you offers the add-on covers which you want to add to your standard Two Wheeler insurance plan.
4. Customer Support Service
Another important factor to consider while choosing a Two Wheeler insurance company is the availability and quality of the customer support services offered by it. You should choose a company which offers 24*7 customer support. This helps in the easy resolution of your queries and provides you with timely assistance when required.
Types of Two-Wheeler Insurance Plans Offered By Different Insurers
There are 3 types of Bike Insurance plans which are offered by different companies.
1. Third Party Bike Insurance
According to Motor Vehicles Act 1988, this is an essential and mandatory insurance plan. Every bike owner must have a third party bike insurance plan in order to cover the financial losses incurred due to property damage or injuries, disability, harm caused to another person from their bike. Maximum coverage for property damage is Rs.7.5 lakh. Whereas in case of bodily injuries/death, the liability is unlimited at the part of the insurance company, however, the compensation is decided by a court of law.
2. Standalone Own Damage Cover
This insurance policy covers the losses or damages which are caused to your bike due to accident, natural calamity,fire etc. To get an all-round coverage for your bike, you can opt for the own damage cover along with the third party liability cover. You can also opt for various add-ons along with your own damage cover to customize your insurance policy.
3. Comprehensive Two-Wheeler Cover
Comprehensive bike insurance strengthens the bike insurance coverage as it is a package policy which offers coverage for both third party liability as well as own damage cover.
What Does Your Bike Insurance Covers?
The coverages offered in different bike insurance plans are as follows:
|
Bike Insurance Coverage |
Third Party |
Comprehensive |
Standalone |
|
Damage/losses caused to your bike due to accident |
X |
✔ |
✔ |
|
Theft of two-wheeler |
X |
✔ |
✔ |
|
Damage incurred due to fire |
X |
✔ |
✔ |
|
Damage/losses due to natural calamity |
X |
✔ |
✔ |
|
Damage to property and third party vehicle |
✔ |
✔ |
X |
|
Personal Accident Cover (if opted) |
✔ |
✔ |
✔ |
|
Injury/ Death of Third Party due to an accident |
✔ |
✔ |
X |
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Two Wheeler Insurance Companies FAQs
Currently, there are 25 general insurance companies in India that offer insurance plans for two-wheelers. The best two-wheeler insurance company varies from individual to individual depending upon their requirements and budget. However, insurance companies can be compared on the basis of their Claim Settlement Ratio (CSR) among other factors. The bike insurance companies which registered the highest motor own-damage claim settlement ratio in FY 2018-19 are IFFCO Tokio General Insurance (96.44%), Royal Sundaram General Insurance (94.07%), and The Oriental Insurance Company (93.16%).
The premium of a two-wheeler insurance policy depends on a number of factors such as IDV of the bike, type of insurance plan, number of add-ons opted, RTO location, etc. Thus, the cheapest two-wheeler insurance plan varies from bike to bike depending upon the requirements of the bike owner.
Yes, you can switch from one insurance company to another insurance company at the time of renewal of your policy.
In India, it is mandatory to have at least a third party bike insurance policy as per the Indian Motor Tariff. The absence of at least a third party bike insurance policy is an offence in the country and attracts a fine of Rs. 2,000 and/or imprisonment of up to 3 months. Also, new bike owners are compulsorily required to have at least a long-term third party bike insurance policy with a validity of 5 years.
On the basis of the motor own-damage claim settlement ratio registered in FY 2018-19, following are the top 10 bike insurance companies in India: Insurance Company Motor OD Claim Settlement Ratio (FY 2018-2019)* IFFCO Tokio General Insurance Co. Ltd. 96.44% Royal Sundaram General Insurance Co. Ltd. 94.07% The Oriental Insurance Co. Ltd. 93.16% Universal Sompo General Insurance Co. Ltd. 92.45% The New India Assurance Co. Ltd 92.23% Tata AIG General Insurance Co. Ltd. 91.80% SBI General Insurance Co. Ltd. 91.74% Bajaj Allianz General Insurance Co. Ltd 91.23% HDFC ERGO General Insurance Co.Ltd. 89.48% Future Generali India Insurance Co. Ltd. 88.56% (*Claim Settlement Ratio As Per IBAI's General Insurance Claim Insights Handbook For Policyholders - 4th Edition)
The coverage of a bike insurance plan depends on the type of plan purchased and the add-ons opted. Following are the three types of insurance policies available for bikes: Third Party Bike Insurance Policy: Under this, the insurer will only pay for the third party liabilities like bodily injuries, death, permanent/temporary disability, total/partial impairment of a third party due to an accident involving your bike. The third party bike insurance plan also provides coverage of up to Rs. 1 lakh for third party property damage. Standalone Own-Damage Bike Insurance Policy: Under this plan, the insurer provides coverage only for the own-damages incurred by your bike in a road accident, natural calamity, fire, explosion, riot, strikes, theft, or any other mishap. Comprehensive Bike Insurance Policy: This plan provides complete coverage for your bike. Under this plan, the insurance company compensates for own-damages sustained by your bike as well as third party liabilities incurred by it.
The act of checking the condition of a vehicle for insurance issuance is known as inspection. In the case of two-wheelers, no inspection is required for issuing a two-wheeler insurance policy.
There are certain losses which are not covered under two-wheeler insurance. These are as follows:
- Electrical or mechanical breakdown
- Wear and tear of two-wheeler
- Consequential loss/ Indirect loss
- Intentional accidental loss
- Driving under the consumption of alcohol or any intoxicated substance
- Any contractual liability
- Damage caused to/by a person driving any vehicle without holding a valid license
After receiving the intimation, the insurance company will send a surveyor to your place/at the place of the accident to assess the damage incurred. Post the assessment and verification of details, your two-wheeler will get repaired and the claim would be settled.
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