Team AckoJun 23, 2022
Every industry needs a strong regulator to keep things in check. In the Indian insurance industry, this role is performed by the Insurance Regulatory and Development Authority of India (IRDAI). From providing licenses to setting base premiums, IRDAI has a strong grip over the functioning of the industry. The regulatory body keeps revising its policies and issues new ones from time-to-time. Recently, they decided to increase the scope of the personal accident cover and unbundling it from the base policy. Read ahead to know how bike owners can now choose the tenure of their own Personal Accident cover and other details related to the recent IRDAI ruling.
The Personal Accident (PA) cover is an essential component of the third-party insurance policy. As a Comprehensive plan includes the mandatory third-party insurance policy, the PA cover is included in it as well. The PA cover comes into the picture when the person riding the bike (owner/driver) faces a permanent disability or dies in a bike accident.
In the recent past, there have been the following major changes in the 2 wheeler insurance PA cover:
The cover has been increased to Rs. 15 lakhs. This has been a significant change considering the earlier cover with respect to bike insurance was Rs. 1 lakh.
The increase in the cover has also caused an increase in the premium. Earlier, the premium attributed to the PA cover was Rs. 50 for bikes. Now, it has been increased to Rs. 750. As a result, the total premium of a bike insurance policy has also increased.
The IRDAI has unbundled the policy from a third-party policy. This means, one can purchase a standalone PA cover as well. It has directed the insurers to make such covers available for the public.
With IRDAI introducing long-term policies for vehicles, it was unclear whether one would compulsorily have to purchase a PA cover for long-term. That is not the case. You can choose a PA cover for a year as going for a long-term PA cover is not compulsory.
Previously, you had to purchase multiple policies including PA cover for multiple bikes. Thanks to recent changes, you do not need to buy multiple PA covers for multiple bikes. However, you will still have to purchase the basic third-party policy (excluding the PA cover) for multiple bikes.
The rationale behind such a decision being; one already has a PA cover on purchasing the bike insurance policy for the first vehicle. Since the PA cover has been unbundled, there is no point in repeating the coverage for 2 wheeler insurance coverage in case of multiple bikes.
Nowadays, almost all kinds of goods and services can be purchased online. Similarly, you can also buy two-wheeler insurance online. Purchasing a policy online is easy and quick. You need not be an expert to do so. Just some basic research and internet knowledge should suffice. However, what is important is reading and understanding the terms and conditions of a policy before purchasing it.
As mentioned above, significant changes have been made to the two-wheeler insurance policy and the PA cover. If not well-informed, you might end up paying extra money for a cover that is already a part of your policy. Therefore, if you have any doubt, you should get it clarified with an insurance executive immediately. You can call or write an email to the insurance executive of your preferred insurance company to get your doubts cleared.
You can also reach out to us at [email protected] or call 1860 266 2256 and we will try to resolve to your queries at the earliest.
Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.
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