Two Wheeler Insurance

This policy covers all types of vehicles plying on public roads such as:-

  • Scooters & Motorcycles

As per the Motor Vehicles Act, 1988 it is mandatory for every owner of a vehicle plying on public roads, to take an insurance policy, to cover the amount, which the owner becomes legally liable to pay as damages to third parties as a result of accidental death, bodily injury or damage to property. A Certificate of Insurance must be carried in the vehicle as a proof of such insurance.

In this scheme,2 types of coversare available:

Liability Only Policy

This covers third party liability for bodily injury liability and / or death and property damage. Personal Accident cover for Owner-driver is also included.

Package Policy

This cover loss or damage to the vehicle insured in addition to Liability Only Policy.

No claim discounts are available on renewal of policy, ranging from 20% to 50%, depending upon the type of vehicle and the number of years for which no claim has been made.


Liability Only Policy:

The policy covers the vehicle owner's legal liability to pay compensation for:

  • Death or bodily injury to a third party person.
  • Damage to third party property.

Liability is covered for an unlimited amount in respect of death or injury and damage to third party property for INR 7.5 lacs under Commercial vehicle and private and INR 1 lakh for Scooters / Motor Cycles.

Package Policy

In addition to the coverage under liability only, this policy covers loss or damage to the insured vehicle and its accessories due to:

Fire, explosion, self-ignition or lightning
Fire, explosion, self-ignition or lightning
Burglary, housebreaking or theft
Burglary, housebreaking or theft
Riot and Strike
Riot and Strike
Malicious Act.
Malicious Act
Terrorist Act.
Terrorist Act
Earthquake (Fire and Shock) Damage
Accidental external means
Accidental external means
Whilst in transit by road, inland waterway, lift, elevator or air.
Whilst in transit by road, inland waterway, lift, elevator or air
By landslide/Rockslide.
By landslide/Rockslide
Flood, Typhoon, Hurricane, Storm, Tempest, Inundation, Cyclone and Hailstorm.
Flood, Typhoon, Hurricane, Storm, Tempest, Inundation, Cyclone and Hailstorm

The policy also pays for towing charges from the place of accident to the workshop upto a maximum limit of INR 300/- for Scooters/Motorcycles and INR 1,500/- for cars and commercial vehicles. It is also permissible to opt for higher towing charges subject to payment of extra premium.

A restricted cover is also available covering the risk of Fire and/or Theft only, in addition to the compulsory cover granted Under Liability Only Policy. However the same is not available in case of vehicle ratable under Class D, Tariff for Miscellaneous and special types of vehicles.

The important exclusions under the policies are:

  • Wear and tear, breakdowns
  • Consequential loss.
  • Loss when driving with invalid driving license or under the influence of alcohol.
  • Loss due to war, civil war, etc.
  • Claims arising out of contractual liability.
  • Use of vehicle otherwise than in accordance with `limitations as to use ' (e.g. private car being used as a taxi)
Rating factors:

Rating depends upon the following factors:

  1. IDV
  2. Cubic capacity
  3. Geographical zone
  4. Age of the vehicle
  5. GVW of in case of commercial vehicles
  6. Add on Covers
Add on covers

The policy can be extended to cover the following risks on payment of additional premium:

  1. Loss or damage to accessories fitted in the vehicle such as stereos, fans, air-conditioners etc.
  2. Personal accident cover under private car policies for:
    • Passengers
    • Paid driver
  3. Legal liability to employees.
  4. Legal liability to non-fare paying passengers in commercial vehicles.
Who can take the policy?
Any vehicle owner whose vehicle is registered in his/her name with the Regional Transport Authority in India.
How to select the sum insured?
IDV stands for Insured's declared Value and represents the sum insured of a vehicle in a Motor Policy

In case of theft of vehicle or if the vehicle is totally damaged and beyond repairs in an accident, the claim amount payable will be determined on the basis of the IDV. The IDV of the vehicle is to be fixed on the basis of manufacturer's listed selling price of the brand and model of the vehicle proposed for insurance at the commencement of insurance / renewal and adjusted for depreciation as per schedule.

IDV of vehicle which is beyond 5 years of age and of obsolete models of the vehicles (i.e. models which the manufacturers have discontinued to manufacture) is to be determined on the basis of an understanding between insurer and insured.

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