You must have asked how a policyholder can be confident that no one will defraud them when purchasing their bike insurance online. The Insurance Regulatory and Development Authority (IRDAI), which oversees the whole insurance industry, should make you feel better. 

Whether you acquire bike insurance offline or online, the authority secures your transaction and looks out for the interests of the insured. They have established a set of rules that two-wheeler insurance providers must abide by. #

The following regulations will help you feel secure about your policy: 

Rate of Depreciation – One of the things that the IRDAI controls are the depreciation or deduction rate. The most significant component affecting this rate is the age of your two-wheeler. The additional elements are: All the fiberglass parts of the two-wheeler are subject to a 30% depreciation rate. Only the components listed in the policy are able to be counted. 50% of items made of nylon, rubber, nylon tubes, batteries, plastic components, and tires depreciate over time. For the glass components, no price has been set. The insurance document for your vehicle contains information on the deduction rate for the paint. #

The Depreciation Schedule – The age and condition of your vehicle, as well as other factors, determine how quickly your two-wheeler will depreciate to its Insured Declared Value (IDV). Vehicles aged between six months and 10 years are subject to the rate of depreciation. However, if your two-wheeler is older than five years, you and the policyholder must decide on the IDV. Any model of car that has been retired is also true of this. *

Declared Insurance Value – The amount of coverage that is paid to you in the event that your two-wheeler is stolen or completely lost is known as the Insured Declared Value (IDV). The amount of the premium you must pay is determined by this value. The IDV is established based on the two-wheeler’s current market value. The IRDA has rules governing this to prevent policy providers from defrauding the policyholder when they process an insurance claim. *

Coverage for Personal Injury – Personal accidents are also covered by bike insurance online. These are described in the policy document. In the event of the policyholder’s passing, there is a 100% payout. The payout is 100% if the policyholder loses both of his or her limbs or one limb and one eye, though this may alter if the circumstances do not match the particular parameters outlined in the agreement. One limb or one eye loss results in a 50% payout for the policyholder. If any harm results in disability, full compensation is granted. If the injury results from a disease, a physical impairment that already exists, an attempt at suicide, or self-harm, a claim cannot be filed. The maximum liability of the policy provider at any given moment is INR 1 lakh. If a person causes an accident while driving while impaired by drugs or alcohol, no claim may be brought. The legal agent or nominee of the policyholder receives payment of the sum assured. Only those who are the policyholder and the driver are eligible to claim bike insurance. ##

Other distinctions – An incident cannot be claimed if it occurs outside of the covered region. The claim will be rejected if the two-wheeler is utilized excessively. Your car’s insurance policy does not cover any property damage.

Both comprehensive and third-party two-wheeler insurance are subject to the aforementioned issues. Make sure you also get familiar with how to renew bike insurance on time. 

* Standard T&C Apply

** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.

# Visit the official website of IRDAI for further details.

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply

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