The insurance of any vehicle running on road in India is mandatory. The insurance of a bike or a car needs to be renewed just before the date of expiry of the insurance policy. The basic insurance guidelines are same for both bike insurance premium and car insurance premium. There is no difference between premium calculation of bike and car insurance in way that they both are decided by two broad categories of insurance covers:
- Third Party Insurance.
- Comprehensive Insurance.
The Third Party Insurance provides financial security to the owner or the driver of bike or car against any physical damage to the property of the third party or any loss of life or damage arising to the third party in lieu of accident with owner’s bike or car. It provides no insurance claim to the owner of either of the vehicles or to his bike or car. The comprehensive insurance covers financial security for both the third party claims and also provides financial security coverage to the driver of the vehicles and his co-passengers in case of any injury to them and also against any damage or man-made emergencies related to the car or bike. The premiums of bike and car vary according to the type of coverage selected by the owner of the car.
However, the minor difference between premium calculation of bike and car insurance is discussed as follows:
- The insurance of the bike is calculated on the basis of No Claim Bonus, IDV of the bike, Cubic Capacity of the bike, Zone of registration of the bike, Age of the bike and the level of ownership of the bike.
Insurance company allows transfer of the insurance policy in name of the new buyer or the existing owner can transfer the policy for some other vehicle.
- The Car insurance premium allows other discounts besides No Claim Bonus. These discounts include Voluntary deductible discounts and additional discounts that can be incurred if the car has ARAI approved anti-theft device. The difference in the premium calculation arises in the IDV calculation of the car. It is fixed on the basis of manufacturer’s listed selling price of the brand and model of the car at the time of purchase and adjusted for depreciation. The difference lies in inclusion of IDV of side car(s) and or the accessories fitted in the car, but not included in the manufacturer’s listed price of the car.
Other factors as consideration of age of car and zone of registration of car are similar to that of the bike. Both insurance policies of bike and car can be easily renewed online without any hassle and submission of documents. It’s pretty easy to compare the plans of different insurance companies as per choice and convenience of the owner of the bike and car. This provides lot of convenience to the owners of bikes and car and promises financial safety for all asthere are many market players in the insurance sector.