Factors Affecting the Premium of Two Wheeler Insurance from ICICI Lombard

Two wheelers are the surest way to cut down travel time by bypassing traffic jams and making use of narrow lanes. However, they are also more vulnerable to accidents and, hence, need the best two wheeler insurance possible. Two wheeler insurance from ICICI Lombard helps provide financial protection in case your vehicle suffers any damage. It provides you with a network of certified servicing centres that will repair your bike on a cashless basis, among other benefits.

When buying two wheeler insurance, people tend to compare the premium as a matter of priority. However, most consumers remain unaware of the various factors that affect the premium of two wheeler insurance. The premium is calculated by in-house actuaries who consider a variety of factors to determine the risk profile of the vehicle. Some of these factors are manufacturers’ listed price, the location of the purchase, the vehicle owner’s driving history and bike segment (budget, premium, or luxury). However, in addition to these factors, there is another consideration which affects the premium. This is the No Claim Bonus (NCB).

No Claim Bonus on Two wheeler insurance from ICICI Lombard

When you spend a whole coverage year without making any claims on your policy, it’s called a claim-free year. A claim-free year affords you a special bonus called the No Claims Bonus (NCB). This bonus is usually expressed as a certain percentage and is added to your account after every subsequent claim-free year.

In insurance, NCB can be used to increase your sum assured or as a discount on your premium. The NCB generally has a maximum cap imposed on it, which tends to vary between 30-50%. This is the maximum amount of discount you can use on your premium.

So, the next time you have a small nick on your bike and you think of claiming it with insurance, think again! By storing your bonus, you can use it to reduce the premium when your policy is up for renewal next. In addition to using the NCB, you can also head on to insurance aggregator sites like Coverfox.com to compare quotes of top insurers when buying two wheeler insurance from ICICI Lombard. The site offers discounted quotes and options to renew your policy instantly without any extra hassles.

Changing Ownership in Two wheeler insurance from ICICI Lombard

If you’re looking to upgrade to a new bike, you’ll normally be looking to sell the existing one. Now, how hard can that be, right? Well, let’s just say it isn’t as simple as handing it over and taking the money. There are a couple more steps involved.

#1 Steps to changing ownership in insurance

In order to change the ownership in the insurance policy, you would first need to file an application with the insurance company. While doing so, remember to take out the No Claims Bonus certificate. This will help you carry your NCB to any other insurance company. Otherwise, the NCB will remain with the existing policy and it will belong to the new owner.

Once the NCB certification has been taken out, request the new owner to file an application with the insurance company providing self-declaration regarding their new ownership. After the process is completed and the insurance is transferred in their name, you are now required to submit the copy of the insurance policy to the RTO.

#2 Changing bike ownership

You need to inform the RTO regarding the change of ownership. Once that is processed, the two-wheeler will now be legally the property of the new owner. In order to transfer ownership of the vehicle, here are a few documents you need to submit:

  • Registration Certificate
  • Tax certificate
  • PUC Certificate
  • Copy of the bike’s insurance policy
  • Completed Form 28 which is for transfer of ownership
  • Completed Form 29 which is a No Objection Certificate
  • Completed Form 30 which is an application for intimation of transfer or report of transfer

As you can see that a copy of the bike’s insurance policy will need to be submitted. If you are in the middle of a coverage year then the ownership of the insurance policy needs to be changed. If the coverage had lapsed, then it would be up to the new owner, whether to continue the policy or look for an upgrade on the existing ICICI Lombard two wheeler insurance.

Going Forward

Whether you’re taking up a new two-wheeler insurance from ICICI Lombard in 2018 or renewing your existing policy or buying someone else’s, no claims bonus plays a significant role. It can help you reduce your premium, increase the sum assured, or provide a variety of other benefits.

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