Motor insurance is a mandatory legal requirement in India. More than a legal mandate, it’s a fruitful investment for any bike lover. However, majority of two wheeler owners in India conveniently ignore to insure or renew their insurance. It’s important to understand the primary objective of bike insurance, which is that it protects you and your valuable asset in case of any unfortunate situation. But, for most of us, the need for insurance pops up only when we need it the most.
With the changing regulations in both general insurance sector and auto industry, it’s crucial for one to realize the need of bike insurance. If you have not renewed your bike insurance policy yet, it’s time for you to hurry up and insure your valued investment. Here are the few reasons for you to insure your two wheeler now!
- Insurance Commission Revision for Agents: India’s insurance regulator IRDA (Insurance Regulatory and Development Authority of India) has already given a go ahead for revising agent’s insurance commission. Introduction of this reward system with increase in remuneration rates will have direct impact on the cost of insurance. Ultimately, cost has to be borne by the end customer. Insurers may revise their product pricing structure. That simply means, we can see some hike in general insurance premium rates. However, IRDA (Insurance Regulatory and Development Authority of India) has also given approval to non-life insurers to increase or decrease the premium up to 5% in relation to new guidelines regarding revision of remuneration to insurance agents. Until now, General insurers were paying up to 10% of the policy premium as commission. IRDA has now hiked the commission structure to general insurance agents to 15% of the policy premium. The new guideline relating to agent’s commission is applicable from 1st of April 2017. Hence, if you have not already insured your two wheeler, don’t miss the chance of buying bike insurance before the price hike.
- Enhanced Third Party Liability Motor Insurance Rates: As per the insurance regulator, motor insurance industry is currently settling higher amount of third party claim than what it receives in the form of premium. Third party motor insurance is a compulsory legal requirement. In order to rein the claim ratio, Insurance Regulator IRDA (Insurance Regulatory and Development Authority of India) has set the highest ever price for third party motor insurance which is around 40%. For two wheeler insurance, third party motor insurance revised rates are applicable from 1st of April 2017. Below is the revised rate structure for third party liability bike insurance:
|Two Wheeler Insurance||Ø Rate till 31st March 17||Ø Rate from 1st April 17||Ø Percentage hike|
|Ø >350 CC||Ø Rs.796||Ø Rs.1114||Ø 40%|
|Ø 150-350 CC||Ø Rs.693||Ø Rs.970||Ø 40%|
|Ø 75 – 150 CC||Ø Rs.619||Ø Rs.720||Ø 16%|
Now is the time to get your new bike insurance policy or renew the existing policy before the rate hike. There are also few insurance providers who offer long-term bike insurance plans which are more convenient, cost effective and efficient. It’s sensible to get your two-wheeler insured for longer-term before the prices get elevated.
- Huge Discount Sale of Two Wheelers: With the implementation of new norms and the Supreme Court banning the sale BS-III vehicles, there is a storm created in the auto segment. Automobile industries are commencing the production of vehicles with BS-IV norms. There are huge discounts offered on some of the existing bike models to clear of their old stock before the new omission norm kicks in. To liquidate the inventory, some of the major bike selling brands has gone on discount spree to clear of the existing BS III Major market players like HMSI, Suzuki Motorcycle and Hero MotoCorp etc have offered discounts cash backs and free insurance as an immediate measure to sell of the stock. Insurance premium rate has also been affected by the immediate ban of BS III models.
To sum it up, it’s very important to have a comprehensive bike insurance policy for your stress-free drive. With the changing norms and regulations, insurance prices are also shooting up. Though price is not the only factor, it is an important element to be considered while buying or renewing your two wheeler insurance. If you have not bought or renewed your bike insurance, now is the time! You have the convenient option of buying it online without any paperwork and even for a long-term!
Hurry up! Get your set of wheels insured today!