ICICI Lombard General Insurance is one of the market leaders in providing two-wheeler insurance services. They also offer other insurance products such as general insurance, travel insurance, health and car insurance. A joint venture between a Canadian financial services company and ICICI Bank, the company currently has as many as 257 branches across India.
ICICI Lombard General Insurance offers customers the option to choose either of the two products mentioned below:
The ICICI Lombard comprehensive two wheeler insurance policy is a complete solution that offers a wide variety of added benefits and also includes a package of add-on options. The policy will cover loss or damage caused to the vehicle or its parts due to both natural and manmade calamities. The policy offers a personal accident cover. Apart from this, third-party legal liability in covered for accidents that cause permanent injury or death of a third party or damage to a third party’s property. Additional add-on covers can be chosen by paying an additional premium.
Liability only two wheeler insurance is compulsory by law and this only covers third-party liability. Third-party liability insurance policies also provide a personal accident cover to the ride of the vehicle.
Loss or damage caused due to:
||Using the vehicle contrary to the mandated instructions, contractual liability, consequential loss|
|Loss due to theft, robbery, and other manmade calamities such as strike, riots, terrorist activities, accidental external damage (*Note: Applicable to comprehensive two-wheeler insurance policies)||Accident due to intoxication|
|Damage caused due to travel by road, air, elevator, inland waterway (*Note: Applicable to comprehensive two-wheeler insurance policies)||Damage due to own negligence|
|Third-party liability in cases of injury or death of a third party or damage to a third party’s assets||Mechanical or electrical breakdown|
|Personal accident cover||Loss due to nuclear risks|
|War related risks|
|If used/driven outside geographical area|
There are two types of tenures that one can choose when it comes to two wheeler insurance: a long-term policy and a short-term policy. Typically, a short-term insurance policy has a tenure of one year. On the other hand, a long-term policy offers continuous coverage for a period of 3 years or more. These types of policies come with better features and discounts and most importantly, you need not go through the hassle of renewing the policy every year.
There are many benefits of purchasing a long-term insurance policy as compared to a short-term insurance policy. Firstly, this is a great way to save cost and reduce your premium amount as the policyholder will not have to worry about renewals every year. The policyholder can also benefit from attractive discounts offered by the insurance company under this option. However, policyholders should note that there can be no changes made to the policy during the tenure and the rate of premium will also not be changed. Hence, any new offers provided in the market cannot be added until the time of renewal.
The IRDA (Insurance Regulatory and Development Authority of India) has reduced the premium amount for two wheeler third-party insurance for the fiscal year starting from 1 April 2018. Below are the new rates applicable to two wheelers:
|Type of Vehicle||Third-Party Insurance Premium Rates|
|Two-wheelers with engine capacity lower than 75cc||Rs.427|
|Two-wheelers with engine capacity lower than 150cc||Rs.720|
|Two-wheelers with engine capacity exceeding 150cc but lower than 350 cc||Rs.985|
|Two-wheelers with engine capacity exceeding 350cc||Rs.2,323|
The following are the add-on options available under ICICI Lombard 2 wheeler insurance:
Zero depreciation is an add-on option provided by insurance companies. This rider basically covers the loss that will be incurred by the insurance policyholder due to the loss in the value of the vehicle and its parts over a period of time. This cover will insure or cover this risk. If the vehicle is not protected against depreciation, at the time of claim settlement, the insurance provider will pay the policyholder after deducting a certain amount towards depreciation.
For example, if the insurance company is supposed to make a reimbursement of Rs.2 lakh, Rs.60,000 will be availed or taken off by the insurance company towards depreciation charges.
Which means: Rs.2 lakh - Rs.60,000 = Rs.1,40,000
The policyholder will thus be eligible to receive only Rs.1,40,000 as the settlement.
Below is a table that summarizes how depreciation is taken into account to calculate the Insured Declared Value of the car.
|Age of vehicle||% of depreciation|
|Not exceeding 6 months||5%|
|Exceeding 6 months but not exceeding 1 year||15%|
|Exceeding 1 year but not exceeding 2 years||20%|
|Exceeding 2 years but not exceeding 3 years||30%|
|Exceeding 3 years but not exceeding 4 years||40%|
|Exceeding 4 years but not exceeding 5 years||50%|
To make a claim under ICICI Lombard one needs to understand the basic steps involved. Its is a very simple process and claims can be made online or through the toll-free number of the company. Let us understand the process involved in making a claim online:
There are two types of claims that can be made with a two wheeler insurance policy - Cashless Claims and Reimbursement Claims.
In case you have forgotten to renew your insurance policy or the policy has lapsed, fret not. You can renew your policy even after it has expired. All you have to do is contact your insurance provider and intimate the company about the status of the insurance policy in question. Then, renew it online by following a few steps. The insurance provider might send a surveyor to get your vehicle surveyed. Sometimes, if the policy has lapsed for a long duration, then you may have to purchase a new insurance policy.
There are a number of factors that determine the premium amount for two-wheelers. Premium is calculated after taking into consideration all these factors like the age of the insurance policyholder, the make of the vehicle, the manufacturer’s listing price and depreciation.
There are a number of factors that determine the premium amount for bike insurance. Many policyholders are charged exorbitantly, while some are charged differently. Let us examine the factors that help reduce the premium amount:
Given that all two-wheeler owners are required to have at least a third-party liability insurance policy, you should do your research, compare.
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Some of the key factors that determine the premium rate of a comprehensive two-wheeler insurance policy include the type of policy purchased, age of the two-wheeler, the Insured Declared Value (IDV) of the two-wheeler, place at which the two-wheeler has been registered, type of vehicle, policy term, No Claim Bonus, choice of add-ons, etc. The premium payable for a third-party liability insurance policy is decided by the Insurance Regulatory and Development Authority of India (IRDAI) based on the cubic capacity of the vehicle’s engine.
No, a pillion rider will not be provided coverage under your two-wheeler insurance policy. However, you can choose to purchase the Personal Accident Add-On for Co-Passengers to extend coverage to the pillion rider.
To arrive at the Insured Declared Value, insurance companies determine the selling price of the two-wheeler and then adjust this sum for depreciation.
Cashless garages are those garages that have partnered with insurance companies to provide cashless services to policyholders. If you are getting your vehicle serviced at a cashless garage, your insurer will bear the cost of the repair, subject to certain terms and conditions.
Yes, the Motor Vehicles Act, 1988 requires all vehicle owners to purchase at least a third-party liability insurance policy, if not a two-wheeler insurance policy that also provides an own damage cover.