Published on April 11, 2019
When buying your two-wheeler insurance, you surely have wondered how a policyholder can be sure that nobody is going to cheat them. You should be relieved to know that the Insurance Regulatory and Development Authority (IRDA) regulates the entire insurance sector.
Whether you buy bike insurance online or offline, your purchase is secured by the authority and they protect the policyholder’s interest. They have set certain guidelines that the two wheeler insurance policy providers have to follow. IRDA also supervises the growth of the sector.
Here are the guidelines that you need to know about to feel safe with your policy:
The depreciation or deduction rate is one of the aspects that the IRDA regulates. This rate depends on different factors, the most important one being the age of your two-wheeler. The other factors are:
The schedule of depreciation for the Insured Declared Value (IDV) of your two-wheeler depends on multiple aspects of your vehicle, like age and condition of it. The rate of depreciation is applied to vehicles that are six months to ten years old.
However, if your two-wheeler is more than five years old then the IDV has to be decided between you and the policyholder. This is true for any vehicle model that has been discontinued too.
The Insured Declared Value (IDV) is the amount of cover, which is paid to you in the case of theft or total loss of your two-wheeler. This value decides the amount of premium you have to pay. The IDV is decided based on the current market price of your two-wheeler and its accessories. Know the amount of premium you have to pay using the two wheeler insurance calculator.
This is regulated by the IRDA to ensure that the policy providers do not cheat the policyholder when they make the insurance claim. You should compare two-wheeler insurance thoroughly before buying one to make sure that you get the best deals on the IDV.
A two-wheeler insurance also provides cover for personal accidents. The IRDA guidelines regulate the amount of compensation depending mainly on the kind of injury the policyholder suffers. You can find these mentioned in the policy document.
These factors are applicable to both third party two wheeler insurance as well as comprehensive two wheeler insurance.