If you use a two-wheeler, it is mandatory for you to have a two-wheeler insurance. You will have to buy a long-term third party insurance policy following the Supreme Court order. As per the order of the Supreme Court, it is mandatory for all insurance companies to issue a five-year third party insurance cover for new two-wheelers as a comprehensive product or as a standalone product. This means you will now have to buy a long-term cover for your two-wheeler.
Most insurance plans are designed for one year and they have to be renewed annually but now you will have to buy a long-term policy for your two-wheeler. You will have to renew it only after a period of three or five years and not annually.
Many individuals purchase two wheeler insurance from the dealer at the time of buying the two-wheeler. You need to make a well-informed decision about it after considering the coverage and costs.
Third-party insurance
A third-party cover will provide for any type of financial liability, which arises out of accident. According to the rules of Supreme Court, there should be no vehicle on the road without a two wheeler third party insurance. The insurance amount will be calculated keeping the capacity of the two- wheeler in mind.
The premium will be fixed at the start of the plan and it will have to be paid upfront to the insurance provider. As a new buyer, you will have three options to choose from. One is to buy a long-term package, second is to buy a standalone third-party cover and lastly, a bundled package.
In a long-term package, you will get a third party insurance and an own damage insurance cover for a period of three or five years.
In a standalone third party insurance, you get to purchase one cover for three or for five years and in the bundled package, you get a third party component for three or five years and an additional one year term for own damage. It will provide a comprehensive coverage to you.
Calculator
Before making the purchase from a third-party insurer, it is advisable to use the online two wheeler insurance premium calculator and estimate the amount of premium you will be liable to pay on the sum assured. You will be asked to provide basic details about yourself and the type of insurance cover you seek.
Based on the same, the premium amount will be calculated and you will get an insight into the premium you will have to pay for your two-wheeler at the time of purchase of the policy.
As a consumer, you need to compare different insurers and plans offered before choosing one because the cost you pay upfront now will be much higher than what it was in the past. You need to compare and buy the option that best fits your needs.
You need to remain wary of people who misrepresent that warranty or cashless facility will not be available to those who do not buy insurance from them. Ask for a separate quote for the vehicle you are buying and a separate quote for the insurance.
You can also compare prices online, use the calculator to estimate the premium amount and then make a wise decision. Your upfront outgo will be higher as compared to what you used to pay in the past, which is why you should make a well thought out decision.