What Is Your Two-Wheeler Insurance Provider Not Telling You?
What's your usual process while making a big purchase like a car or a bike? Most people start with research. They cover everything from price, make and model to performance, after sales service, best deals and discounts. Yet it is surprising that the same people who put so much effort into gathering information before making a purchase as important as a motor vehicle, go lax on the subject of purchasing a comprehensive insurance plan to secure the same vehicle.
So, as per the government mandate, under Indian Motor Vehicles Act, 1988, those who own a two-wheeler motor vehicle should compulsorily have a third-party two-wheeler insurance policy. That being said, the purchase of a two-wheeler insurance for your bike is not just a checkmark on your list. It needs to be a lot more.
Most insurance providers will be happy to provide you with a basic plan, and since it involves a lot less paperwork most people prefer basic plans that may or may not meet their needs. So, what is your insurance provider not telling you about the coverage of your two-wheeler policy? What does your two-wheeler insurance not cover?
Add On Covers
While buying two-wheeler insurance, you must make sure that you ask your agent for add on coverage - some benefits might be available for free and some at an additional but minimal cost.
Three important add on covers for your two-wheeler insurance are -
- Zero Depreciation Cover
- Return to Invoice Cover
- Towing Cover
Zero Depreciation Cover
It is common knowledge that the minute you purchase a motor vehicle, its value starts to depreciate. So, if you have to claim two wheeler insurance, say a few months after purchase, most insurance providers will offer a payout based on the value of the bike on that day and not on the date of purchase. However, a zero depreciation add on cover, will not keep the depreciation value in mind before calculating your claim amount.
Return To Invoice Cover
When a two wheeler is damaged beyond repair, most insurance policies for two wheelers will only pay you according to the vehicles depreciating value. With an add on cover like return to invoice, you can claim the invoice value of your two-wheeler including registration charges and road tax.
The add-on cover offers you various benefits such as cost of towing, removal, and storage of the vehicle if it suffers a damage.
Long Term Renewals
One of the biggest issues faced by two wheeler vehicle owners is lapsing of their insurance policy - this can happen when the policy owner forgets to renew or is unable to renew their two-wheeler insurance due to various reasons. Riders can now breathe a sigh of relief because as per the Supreme Court ruling 5 years third-party cover is mandatory for new vehicle now. You can buy a long term policy for own damage cover as well.
You can reduce your insurance premium
Insurance premium for your two wheeler is renewed each year and if you have made a claim in the past, the renewal happens after an inspection. A way to reduce your insurance premium in an upcoming renewal is to ensure your bike is well maintained and in good condition at all times.
With a comprehensive coverage for your policy you can avail a lot more out of your two wheeler vehicle insurance policy and cover most of the expenses during a mishap.