Two-Wheeler Insurance: Frequently Asked Questions (FAQs)

As per the Motor Vehicles Act, every two-wheeler owner must have at least a basic two-wheeler insurance. However, there are many aspects of the system that people don’t know about, for which the FAQs discussed below shall help:

Q1. What is the validity of a two-wheeler insurance?

A two-wheeler insurance can have a term starting from 1 year to as long as 3 years or even more as it varies from one policy to another.

Q2. What is the protocol for modified two-wheelers?

A two-wheeler that’s been modified for a handicapped person is eligible for a two-wheeler insurance. In addition to that, a large number of insurers offer 50% discount on the premiums.

Q3. In what situations you must report an accident to the police?

If an accident has caused major third-party property damage, or harmed them physically, or even led to their death, then you must file an FIR at the nearest police station. This is important for proceeding with the insurance claim process later.

Q4. What is the difference between a cashless and reimbursement insurance claim?

A cashless claim, as the name suggests, is an insurance claim in which you don’t need to pay money to the garage for the repairs. This is because the insurer bears all the expenses directly, hence the term “cashless”.

In a reimbursement insurance policy, you have to bear the expenses on your own. However, you can submit the bills/documents to the insurer later to get reimbursement for the same.

Q5. What is “Total Constructive Loss”?

If the repairing costs of a vehicle are higher than the present value of the vehicle itself, then the situation is called “total constructive loss”.

Q6. Is there a benefit to not claiming the insurance for minor repairs?

If you don’t raise a claim during an entire year at all, then you can qualify for “No Claim Bonus” which is basically a discount (usually around 20%) on the insurance premium for the next year. Thus, if the repairing costs are minor, then it’s best to avoid raising an insurance claim.
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