As per Section 146 of the Motor Vehicles Act, 1988, two-wheeler insurance is essential, and if you ride your bike without a valid insurance, you can face a fine. Third-party liability coverage is mandatory, while more comprehensive policies ensure maximum safeguarding against mishaps. The National Insurance two wheeler insurance offers various policies to meet the compulsory legal requirement and also provide the required coverage.
In this article, we are going to explore more about National Insurance two wheeler policies, their coverage, and add-ons. We will also discuss a step-by-step process to buy the policy and make claims.
Table of Contents
- About National Insurance Company Limited
- History and Background
- Government Ownership and IRDAI Registration
- Evolution After Nationalisation
- Types of National Insurance Two-Wheeler Policies
- Liability Only Policy
- Long-Term Liability Only Policy
- Standalone Own Damage (OD) Policy
- Long-Term Bundled Policy
- Package Policy
- Long-Term Package Policy
- National Insurance Two Wheeler: Liability Only Policy Explained
- Coverage (Third-Party Liability & PA Cover)
- What Is Not Covered
- Policy Variants (Short-Term vs Long-Term)
- National Insurance Two Wheeler: Standalone Own Damage (OD) Policy
- What It Covers
- Covered Risks (Fire, Theft, Natural Disasters, etc.)
- Vehicle Usage Conditions
- National Insurance Two Wheeler: Long-Term Bundled Policy: Complete Breakdown
- Policy Duration
- Section I: Own Damage Cover
- Section II: Third-Party Liability
- Section III: Personal Accident Cover
- National Insurance Two Wheeler: Package Policy (Comprehensive Cover)
- Coverage Sections Explained
- Key Benefits Over Basic Plans
- Situations Not Covered
- Coverage
- Accidental Damage
- Theft and Burglary
- Natural and Man-Made Calamities
- Personal Accident Protection
- Situations Not Covered (Key Exclusions)
- Wear & Tear and Depreciation
- Mechanical or Electrical Failure
- Driving Under Influence
- Policy Violations
- Depreciation & Deductibles Explained
- Compulsory Deductible
- IDV Calculation
- Age-Based Depreciation Table
- Popular Add-On Covers Offered by National Insurance
- Zero Depreciation (Nil Dep) Cover
- Engine Protect Cover
- Roadside Assistance (RSA)
- Invoice Protection Cover
- NCB Protection
- EV Protect Plus
- Step-by-Step Claim Process
- Accidental Damage Claim
- Theft Claim
- Third-Party Liability Claim
- Conclusion: Is National Insurance Right for Your Bike?
- FAQs
- How much does two-wheeler insurance cost?
- Is National Insurance good for bikes?
- Which two-wheeler insurance is best?
- Can I ride without insurance?
- Third-party vs comprehensive: Which should you choose?
About National Insurance Company Limited (NICL)
National Insurance Company Limited, a wholly-owned government company in India, is the oldest public sector general insurance company in the country.
The company was formed under the Indian Companies Act of 1882 (now the Companies Act of 2013) in Kolkata on December 5, 1906, as part of the nationalist movement for Swaraj. It registered as a General Insurance Company with the Insurance Regulatory and Development Authority of India (IRDAI) with registration number 58.
The General Insurance Business Nationalisation Act of 1972 nationalised general insurance companies, merging 21 foreign and 11 Indian companies. With that, the National Insurance Company Limited was formed as a subsidiary of the government-owned General Insurance Corporation of India.
The General Insurance Nationalisation Act, 1972, which was passed when the business was nationalised in 1972, lists the key goals of the organisation. The General Insurance Business (Nationalisation) Amendment Act was made public on August 7, 2002. After that, National Insurance firm Limited was no longer connected to its parent firm, GIC. It is now an independent insurance company that is fully controlled by the Indian government.
Types of National Insurance Two Wheeler Policies
National Insurance offers multiple two-wheeler insurance policies with varying coverage.
- Liability Only Policy
- Long Term Liability Only Policy
- Standalone OD Policy
- Long-Term Bundled Policy
- Package Policy
- Long Term Package Policy
National Insurance Two Wheeler: Liability Only Policy
This policy covers your legal liability to other people. It does not cover damage to your own vehicle. There are two variants:
- Short-term
- Long-term
What the Policy Covers
The National Insurance Two Wheeler Liability Only Policy and Long-Term Liability Only Policy cover the following:
- Third-Party Liability: This coverage follows the rules of the Motor Vehicles Act. The insurer will pay if your vehicle causes an accident and you are legally responsible for:
- The death of another person
- Injury to another person
- Damage to someone else’s property
- Personal Accident Cover for Owner-Driver: This National Insurance two wheeler policy also provides compensation if the owner-driver:
- Suffers bodily injury, or
- Dies due to an accident involving the insured vehicle.
- Add-Ons: Not available with this plan.
- Loss Participation: Not applicable here.
What the Policy Does not Cover
The policy will not cover liability if:
- The vehicle is used against the policy rules.
- The driver does not meet the licence conditions.
- The claim arises from a contract.
- Death occurs during employment.
- Injury happens while entering, travelling in, or leaving the vehicle (in certain liability situations).
- The event involves war, invasion, or similar situations.
- The loss involves nuclear risks.
National Insurance Two Wheeler: Standalone OD Policy
This policy covers damage to your own two-wheeler only. It does not cover third-party liability. It is valid for 1 year only.
What the Policy Covers
The insurer will pay for damage caused by:
- Fire, explosion, self-ignition, lightning
- Theft, burglary, or housebreaking
- Riots or strikes
- Earthquake
- Flood, storm, cyclone, typhoon, hailstorm, frost
- Accidental external damage
- Malicious acts
- Terrorist activity
- Transit by road, rail, air, elevator, or inland waterways
- Landslides or rockslides
Vehicles Covered
Motorised two-wheelers are used for:
- Personal use
- Social or domestic purposes
- Professional use (except carrying goods except for samples)
Not allowed for:
- Hire or reward
- Racing or speed testing
- Motor trade activities
National Insurance Two Wheeler: Long-Term Bundled Policy
This policy combines own damage, third-party liability, and personal accident cover.
Policy Duration
- Third-party cover: 5 years
- Personal accident cover: 5 years
- Own damage cover: 1 year initially (can be renewed yearly)
Coverage
The National Insurance two wheeler coverage is categorised in three sections:
Section I: What the Own Damage Section Covers
Damage caused by:
- Fire, explosion, lightning
- Theft or burglary
- Riots and strikes
- Earthquakes
- Floods and storms
- Accidental external impact
- Malicious acts
- Terrorist activity
- Transit accidents
- Landslides
Section II: Liability to Third Parties
This section covers legal liability to other people if an accident happens involving the insured vehicle. The insurer will compensate the insured if they are legally liable to pay for:
- Injury or Death
- The death of any person
- Bodily injury to any person
- Occupants travelling in the insured vehicle
- Property Damage: Damage to property that:
- Does not belong to the insured
- Is not under the insured’s care or control
- Legal Costs: The insurer will also pay legal costs and expenses if they approve them in writing.
- Coverage for the Driver: If someone is driving the vehicle with the insured’s permission:
- The policy also protects the driver.
- The driver must follow the same policy conditions.
- If the Insured Person Dies: If a person covered under the policy dies:
- The insurer will cover their legal representative.
- Policy terms will still apply.
- Legal Support: The insurer may choose to:
- Arrange representation at an inquest or inquiry.
- Defend the insured in court for claims related to the accident.
Section III: Personal Accident Cover for Owner-Driver
This section provides financial protection to the owner-driver of the insured vehicle.
This applies when the owner-driver is:
- Driving the vehicle
- Travelling in the vehicle as a co-driver
- Getting into the vehicle
- Getting out of the vehicle
The accident must be:
- Sudden and external
- Visible in nature
- Independent of any other cause
Compensation
- Maximum liability of the insurer: ₹15 lakh during one policy period.
- When compensation will not be paid:
- Intentional self-injury
- Suicide or attempted suicide
- Existing physical defects or infirmity
- Accidents while under the influence of alcohol or drugs
Conditions for This Cover
This National Insurance two wheeler cover is valid only if:
- The owner-driver is the registered owner of the insured vehicle.
- The owner-driver is the person named in the policy.
- The owner-driver holds a valid driving licence as per the Central Motor Vehicles Rules.
Vehicles Covered
Motorised two-wheelers are used for:
- Social or domestic purposes
- Professional use (except carrying goods except samples)
Not allowed for:
- Hire
- Racing
- Speed tests
- Motor trade activities
Important Exclusions
The National Insurance two wheeler policy does not cover:
- Wear and tear
- Mechanical or electrical failure
- Depreciation
- Consequential loss
- Damage to tyres unless the vehicle is also damaged
- Theft of accessories unless the vehicle is stolen
- Accidents caused while under alcohol or drugs
National Insurance Two Wheeler: Package Policy
This policy provides comprehensive protection for the insured two-wheeler. There are:
- Short-term package policy
- Long-term package policy
Coverage
Similar to the National Insurance two wheeler Bundled Policy, the coverage is divided into three sections:
Section I: Loss or Damage to the Insured Vehicle
The insurer will compensate the insured for loss or damage to the vehicle and its accessories caused by:
- Fire, explosion, self-ignition, or lightning
- Burglary, housebreaking, or theft
- Riots or strikes
- Earthquake (including fire or shock damage)
- Flood, storm, cyclone, typhoon, hailstorm, or frost
- Accidental external impact
- Malicious acts
- Terrorist activity
- Transit by road, rail, inland waterway, lift, elevator, or air
- Landslides or rockslides
Section II: Liability to Third Parties
The insurer will pay amounts that the insured becomes legally liable to pay for:
- Death of any person
- Bodily injury to any person
- Occupants in the insured vehicle (not carried for hire or reward)
- Damage to property that does not belong to the insured and is not under their control.
- Any person driving the vehicle with the insured’s permission is also covered, provided they follow the policy conditions.
- If a person covered by the policy dies, the insurer will cover their legal representatives for liabilities under the policy.
Section III: Personal Accident Cover for Owner-Driver
This National Insurance two wheeler policy provides compensation if the owner-driver suffers injury or death due to an accident involving the insured vehicle.
This includes accidents occurring while:
- Driving the vehicle
- Getting into or out of the vehicle
- Travelling in the vehicle as a co-driver.
Situations Not Covered
Compensation will not be paid if injury or death results from:
- Intentional self-injury
- Suicide or attempted suicide
- Physical infirmity
- Accidents under the influence of alcohol or drugs.
Depreciation & Deductibles Explained
There is a thing called compulsory deductible, which is ₹100 per own damage claim for two-wheelers, and it needs to be paid by the policyholder. Plus, there is also a factor of age-based depreciation of parts, which will be explained in the table below.
| Vehicle Age | The percentage depreciation to be applied on the Manufacturer’s Selling Price (MSP) on the date of policy inception to arrive at IDV | |
| Non-Trade Policy | Trade Policy | |
| Not exceeding 6 months | 5% | Nil |
| Exceeding 6 months, not exceeding 1 year | 15% | 15% |
| Exceeding 1 year, not exceeding 2 years | 20% | 20% |
| Exceeding 2 years, not exceeding 3 years | 30% | 30% |
| Exceeding 3 years, not exceeding 4 years | 40% | 40% |
| Exceeding 4 years, not exceeding 5 years | 50% | 50% |
| Exceeding 5 years, not exceeding 7 years | 55% | – |
| Exceeding 7 years, not exceeding 8 years | 60% | – |
| Exceeding 8 years, not exceeding 9 years | 65% | – |
| Exceeding 9 years, not exceeding 10 years | 70% | – |
| Exceeding 10 years, not exceeding 12 years | 75% | – |
| Exceeding 12 years, not exceeding 14 years | 80% | – |
| Exceeding 14 years (if acceptable) | To be done on a market value basis | – |
Popular Add-On Covers Offered by National
Well, there are some popular add-on covers that you can check out when exploring National Insurance two wheeler. They are:
| Add-On | What It Is | Who Should Opt for It |
| Daily Allowance | Pays a fixed daily amount if your vehicle is in the garage for repairs after a claim. | People who depend on their vehicle for daily travel. |
| Roadside Assistance | Provides help during breakdowns such as towing, battery jump-start, flat tyre support, or fuel delivery. | Riders who travel long distances or commute daily. |
| EMI Protect | Pays your vehicle loan EMI if the vehicle is unusable due to major damage or total loss. | Owners who have an active vehicle loan. |
| Engine Protect | Covers repair costs for engine damage due to water ingress, oil leakage, or similar issues. | People living in flood-prone or heavy rain areas. |
| Invoice Protect | Pays the full invoice value of the vehicle in case of theft or total loss. | Buyers of new or expensive vehicles. |
| Loss of Driving Licence and Vehicular Documents | Covers expenses for getting duplicate licence, RC, or other vehicle documents if lost. | Anyone who wants protection against document loss. |
| NCB Protect | Protects your No Claim Bonus even if you make a claim during the policy period. | Careful riders who want to keep their premium discounts. |
| NIL DEP (Zero Depreciation) | Covers the full cost of parts without deducting depreciation during claims. | New vehicle owners or people who want lower claim deductions. |
| National Invoice Protect | Similar to invoice protection but offered under specific insurer terms to cover the invoice value in total loss or theft. | New vehicle owners who want maximum claim payout. |
| RSA for Liability Only / SATP | Adds roadside assistance services even to liability-only policies. | Riders who only have third-party insurance but want breakdown help. |
| EV Protect Plus | Additional cover designed for electric two-wheelers, including protection for the battery and EV components. | Electric vehicle owners. |
Claim Process: Step-by-Step Guide
So, how do you claim the insurance after you get it? There are three scenarios, and we will be discussing each step to keep things simple for you.
Accidental Damage Claim
- Step 1: Inform the insurer immediately.
- Step 2: Wait for the surveyor’s inspection.
- Step 3: Submit documents:
- Claim form.
- RC copy.
- Driving licence.
- Repair estimate.
- FIR (if applicable).
- Step 4: Repair at a network or non-network garage.
- Step 5: Settlement after deductibles & depreciation.
Theft Claim
- File FIR immediately.
- Inform insurer and RTO.
- Submit documents (RC, keys, claim form).
- Cooperate with the investigation.
- Settlement based on IDV.
Third-Party Liability Claim
- Inform the insurer immediately.
- Forward legal notices/court summons.
- Provide FIR & required documents.
- Insurer handles legal proceedings.
Conclusion
The National Insurance Company offers multiple policies with varying coverage and add-ons, allowing individuals to pick and personalise their cover. Each policy has the inclusions and exclusions mentioned to ensure transparency.
Before deciding on a National Insurance two wheeler policy, make sure you go through it in detail. Read it carefully and understand the terms clearly, as this will help you know the policy conditions before making a claim.
FAQs
-
How much does 2-wheeler insurance cost?
The two-wheeler insurance policy from the National Insurance depends on a lot of factor whether it is a comprehensive or third-party policy.
-
Is national insurance good for a bike?
Considering the National Insurance two wheeler policy has a pretty simple claim process and covers all major damages like accidents, fire and explosion, natural calamities, manmade calamities, theft and burglary, transit damage, and personal accident cover, it is indeed worth it.
-
Which 2-wheeler insurance is best?
Even though there are a lot of two-wheelers in the country, the National Insurance Company two-wheeler policy is the best, considering the company has had a long history and has the trust of consumers for quite some time.
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Can I ride my bike without insurance?
As per section 146 of the Motor Vehicle Act,1988, you cannot ride a two wheeler without an insurance policy; otherwise, you are liable for fines.
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Should I get 3rd party or comprehensive?
Ideally, you should choose comprehensive insurance cover as it comes with a lot of benefits, but you can also opt for third-party coverage if you have budget constraints.