Two-Wheeler

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.

Top 7 Benefits of Renewing your Two-Wheeler Insurance on Time

Top 7 Benefits of Renewing your Two-Wheeler
Insurance on Time

Two-wheelers
are one of the majorly used vehicles especially in the metropolitan cities
where traffic is a major concern. People use two-wheeler not only for personal
use but also for various commercial purposes. Maybe it a weekend travel with
buddies or daily commuting to work, two-wheelers are the most preferred options.
Two-wheelers are one of the best companions for Indians when it comes to saving
time and money. However, people often neglect or forget to renew their
two-wheelers against natural or man-made calamities which might end up with
lots of unpleasant expenses during any unforeseen mishaps. Renewing your
insurance on time is the best way to keep your two-wheeler secured.

As
per the Motor Vehicles Act, 1998 it is illegal to ride a two-wheeler without
having a valid insurance policy. Out of the total two-wheelers running down the
lane of the country only 25% are insured while the other 75% are never renewed
which is a matter of major concern. Vehicle owners need to understand the
importance of timely renewal of the policy as it not only ensures continuity in
cover but also offers you a sense of security.

Below
mentioned are Top 7 benefits of renewing your two-wheeler insurance on time:

Security
against Natural Perils

Life
is unpredictable and you never know what unforeseen situation might come your
way. Renewing your two-wheeler insurance on time would aid you in saving your
heavy expenses that may incur due to any natural perils. Your two-wheeler
insurance policy would bear the huge cost of repairing the damages caused due
to natural calamities like Earthquake, Cyclone, landslide, self-ignition, fire
etc.

Protection
against Man-made Calamities

Renewing
your two-wheeler insurance from time-to-time could be a silver lining of
economic recovery during any man-made disaster such as strike, war, burglary,
theft or any accidents. It covers the replacement charges or service cost
whichever is compulsory as per the situation.

Access
to various perks

In
case if the insured person has not made the claim even once during the policy
term, he/she is eligible to avail the benefits of NCB (No Claim Bonus) on the
premium amount. One of the major pros of renewing the insurance policy on time
is that you can get the perks of NCB and at the same time the policy is renewed
at a lower premium. If you fail to renew your policy on time or if there is any
kind of break in the policy period than you might be deprived of these perks.

Add-on
covers

While
renewing your insurance policy you are given a chance to select any desired
cover from the various options available which you might have missed adding
while purchasing the policy. Some of the add-on covers include zero
depreciation cover, personal accident cover for unnamed hirers or pillion
riders and covers for loss of accessories.

You
can change your policy term

While
you are renewing your policy it is possible to change the term of the policy
i.e. you can renew the policy for 1, 2 or 3 years as per your requirement. The
term of the plan is directly proportional to the discounts or benefits you get
i.e. the greater the term of the insurance plan the higher would be the
benefits.

Gives
you peace of mind

Timely
renewal of insurance makes you financial equipped during any mishap which can
attain you peace of mind. It assures that you are safe when interrogated by the
traffic police and also covers injuries caused during the accident. Moreover,
having the Insurance makes you remain on the right side of the law.

Protection
of Legal Interest

Renewal
of your insurance policy assures that you are covered for any legal proceedings
in case your two-wheeler is involved in any road accident causing any damage or
injury to a third-party property or person.Renewing your insurance
on time ensures that your obligations as an owner of the two-wheeler are
fulfilled. In case of unforeseen situations, the cover provides monetary
assistance to the insured person.