With over 154 million two-wheelers in India, the Government of India introduced a rule under the Motor Vehicles Act, 1988, making it mandatory for all vehicle owners to have at least a third-party insurance policy. This move came in light of the increased risk of accidents. Many people who are responsible for the damages either hit and run, or claim they cannot afford to pay for it. With an insurance policy covering third-party liabilities, the person responsible can claim insurance to cover the damages caused to someone else.
Two-wheeler Insurance Providers in Varanasi
Choosing the most suitable policy needs research between the different insurance companies and the plans available in the market. The best two-wheeler insurance plan differs between customers and will be relative to your requirements, the coverage you want and the premium you are willing to pay. Some of the popular insurance companies in Varanasi that offer motor insurance for two-wheelers have been listed below.
- Tata AIG General Insurance
- ICICI Lombard General Insurance
- HDFC Ergo General Insurance
- IFFCO Tokio General Insurance
- Oriental Insurance
- Reliance General Insurance
- SBI General Insurance
- Universal Sompo General Insurance
- Liberty Videocon General Insurance
- Bajaj Allianz General Insurance
- United India Insurance
- Magma HDI General Insurance
- Shriram General Insurance
- New India Assurance
- Bharti AXA General Insurance
*Insurance companies have been listed in no particular order.
Cashless Garages in Varanasi for Two-wheelers
Insurance companies tie up with garages across the country to provide cashless settlements to customers. Cashless settlements make the insurance claim settlement process convenient, easier and quick. To locate a cashless garage in Varanasi, insurance companies provide the following options:
- Log on to the official website of the insurance provider. You should be able to find a network garage locator. Using this tool, enter your area and pincode to find network garages closeby.
- In the policy document or booklet provided to you at the inception of the policy, the list of network garages should be available.
- The customer support team of the respective insurance company should also be able to help you find a network garage or confirm if a garage is within the network.
Benefits of Cashless Garages in Varanasi
Availing services from cashless garages in Varanasi saves time for all parties involved. There is minimal involvement required from the customer, while the garage and the insurance company communicate directly with each other.
Fast processing - Getting an approval for a cashless request is done within a few minutes but not later than 24-48 hours. Once the approval comes through, the repairs will be done and the garage will settle the bill with the insurer.
Minimal Documentation - Since the garage and the insurer are already tied up, there is minimal documentation that needs to be submitted. This is usually handled by the garage directly.
Lesser out-of-pocket expenses - When you choose cashless settlements, you will not be required to pay the money upfront and collect it later from your insurance provider. The insurance company will make the payment directly to the garage. You only need to pay for what is not covered by your policy.
Minimal Hassle - The garage and the insurance company already have a rapport. There is minimal involvement from the customer. This reduces the hassle involved significantly, especially since the customer does not have to visit an office to make the insurance claim.
What to Consider when Purchasing Bike Insurance?
There are a few things to keep in mind when buying a two-wheeler insurance policy. This could make all the difference in how satisfied you are with your insurance plan.
Scope of Cover - There are two types of protection you can opt for: liability-only policy or a comprehensive package. A comprehensive package provides cover for own damages as well as third-party liabilities. With a third-party liability policy, only damages, injury and death caused to a third party will be covered.
Exclusions - Under a few circumstances, the insurance company states that they are not liable to pay claims. These exclusions are generally driving without a valid licence, driving under the influence of alcohol or drugs, damage due to war, terrorism or nuclear-related incidents, consequential losses, gross negligence in case of theft, and so on.
Plan Terms - Terms available on two-wheeler insurance are usually between 1 year and 3 years. 1-year terms require you to renew your policy annually by paying the premium by the due date. Opting for a longer tenure would secure you against rising premiums of third-party insurance as declared by the IRDA from time to time.
No-Claim Bonus Options - To rewards customers who make no claims during the policy year, the insurance company offers a no-claim bonus (NCB). The NCB is given in the form of a discount on premiums when the policy is renewed. NCB is 20% for the first claim-free year and subsequently increases to 25%, 35%, 45% and 50% maximum.
Settlement Options - There are two types of settlement options: Cashless and reimbursement. If your insurance provider offers cashless settlements, you will not be required to pay from your own pocket for the repairs. It can save a lot of time, reduce the hassle and own expenses. With reimbursements, you need to settle the bill, collect all documents and bills, and file for a reimbursement claim.
Maximum Claim Limit - In the event of a claim, two-wheeler insurers are liable to pay only a certain limit in damages and liabilities. For death caused to a third party, there is usually no cap on the sum insured. For claims on damage to third-party property, the insurance amount is generally capped at Rs.1 lakh. For comprehensive policies, the limits will depend on the premium paid, the sum assured and the coverage opted for.
Deductibles - Deductible is the amount you voluntarily opt to pay in case a claim arises. For instance, if you opt for a 10% deductible, the insurance company will be liable to pay only 90% of the insurance claim. If you choose a lower deductible, your premium will be higher.
Premium Rates - Compare different premiums, premium payment modes and frequencies. Premium rates differ from person to person and vehicle to vehicle. It is determined based on the location of purchase and registration, age of the vehicle, the accident history, no-claim bonuses, along with a few other factors.
How to Transfer Ownership of Bike Insurance for Vehicles of Other State?
While selling your bike, there a few things you need to do to complete the sale legally and to ensure that you are not held accountable for any future liabilities that might arise in connection with the vehicle. To transfer the ownership of the bike, one needs to follow the procedure given below:
- Visit the Regional Transport Authority (RTO).
- Inform them of the sale of the vehicle and request them to transfer the name.
- Fill up an application and state the time and date at which the bike is deemed officially sold.
- Apply for a No Objection Certificate (NOC).
If the new owner meets the eligibility criteria of your current insurance policy, then you can transfer the policy to them. Most insurance companies provide this option through an easy process. To transfer the insurance policy, one can follow the steps below:
- Contact the insurance company and inform them of the sale of the vehicle.
- Place a request to transfer the name of the policy to the new owner.
- If you have not made a claim on the insurance policy, you can apply for a NCB certificate. The no-claim bonus on your policy will remain in your name as it is not transferrable to another person. You can then avail the NCB on any new motor insurance policy that you may purchase.
- The new owner will have to verify his eligibility, and provide details and documents as required.
- If all requirements have been met, the insurer will transfer the policy to the new owner of the vehicle.
Though having a two-wheeler insurance policy is mandatory, many people in India still do not have insurance on their bikes. This is due to a number of reasons, one being the thought that “nothing will happen to me, I ride safely.” But with the rate of accidents being so high in our country, it is wise to take an insurance policy. This could go along way in providing financial support when accidental damages and death occur.