Two-Wheeler
The ever-rising number of road accidents in India due to traffic on roads, heavy rainfalls, etc., is a matter of concern. It is mandatory to have a third-party insurance cover on every vehicle that runs on Indian roads. If any individual is found to ride/drive without motor insurance is bound to go under legal procedures of having to pay huge penalties.
Two-wheeler insurance
Two-wheeler insurance is a policy that provides cover to the two-wheeler, i.e., bike, scooter, etc., owner in case of accidents, theft, damage, or any third party liability. The two-wheeler insurance comes to the rescue in case of damages and unwanted losses in such cases.
Two-wheeler third party insurance
A third-party insurance policy is a mandatory policy for every two-wheeler in India. This policy provides coverage against damages or injuries caused to other persons/property due to the insured vehicle. Though this policy does not bear the cost of losses/damages to the insured vehicle and does not provide any cover to the rider/driver in case of a personal accident.
Comprehensive/Package policy
Under the comprehensive policy, the two-wheeler is covered against theft, loss, or damage. This policy is comparatively wider in scope in terms of coverage. It covers both third-party liability coverage as well as the damages/losses suffered by the bike itself. Moreover, this policy can also provide personal accidental cover to the rider/owner of the vehicle.
Apart from these usual covers, there are add-ons covers to enhance the coverage of two-wheeler insurance that can be chosen by payment of an additional amount on premium.
No Claim Bonus/NCB
No Claim Bonus or NCB is a reward provided by the insurer as a discount or savings on the premium to the owner. This bonus is only obtainable if there is no claim made during the insurance policy term. The rate at which the NCB increases every year is 5% for every claim-free year and goes up to 50%. This bonus promotes safe driving amongst owners as it is available as a bonus.
Own Damage Discount
Own Damage (OD) helps to stay covered against damage caused to the insured vehicle due to accident, theft, losses caused due to fire, damages due to natural calamity. The OD cover compensates for the expense of repairs or replacement of parts damaged in such cases.
Earlier, there used to be a fixed tariff rate on OD premiums, but now, due to de-tariffing, OD discount is the discount rate that the insurance companies offer on the premium amount keeping the tariff rates as the base.
Premium discount
Insurance companies provide discounts on premium amounts, but these discounts are based on various factors:
- -> driving record of the individual
- -> opting for add-ons with the basic policy
- ->discounts based on age
- -> the policy renewal is on-time that is, before the due date
- -> installation of security-enhancing equipment
- -> buying various insurance policies from the same insurance company
- -> filing a claim only if necessary
- -> managing the deductible as per the needs.
- -> buying a policy for long-term
- -> buying the policy online
- -> maintaining a good credit score
Zero depreciation
Usually, while the claim is provided, deductions for depreciation due to normal wear and tear of the vehicle are made on it. But under zero depreciation cover, the claim settlement is not affected by the depreciation, and no deduction is made on this account, and the full amount is paid.
Nevertheless, there are so many options and discounts available for two-wheeler insurance; many people don’t buy it or merely buy the third-party policy. It is compulsory for all vehicles. By doing this, they refrain from the benefits provided by other policies and end up paying comparatively more for lesser coverage. Therefore, it is always prudent to have a prior study and get a good knowledge of various insurers’ various policy options and choose amongst the best with the most benefits at reasonable costs.
With its 21 years of excellence, Probus Insurance helps its clients choose the best policy from its wide range of options by providing consulting and advisory services. It also aims at constantly providing improved insurance solutions.