Let’s understand the need for Comprehensive Insurance with the help of an example. John and Andy are two friends who purchased their first cycle together as well their first motorcycle together. John being skeptical about the necessity of insurance opted for the basic Third-party Liability cover whereas Andy went for a Comprehensive cover. Andy suggested John to go for the Comprehensive cover but John did not consider it as important.
Unfortunately, on their motorcycle trip, both the bikers had an accident. The bikes rammed into two parked cars, respectively. They damaged their bikes and the cars, as well as suffered injuries. As Andy had a Comprehensive Two-wheeler Insurance cover, his expenses regarding the damages were taken care by his insurance company. However, John had to pay a huge amount as his insurance policy only covered the expenses paid for repairing the parked car he had damaged. He had to pay from his pocket to repair his bike and treat his injuries. John regretted his decision of not opting for a Comprehensive cover and made sure to opt for one while renewing his two-wheeler insurance policy.
What Does the Book Say?
If we go by the technical explanation of Comprehensive Insurance, it is a combination of Third-party Liability Insurance and Own Damage Cover. Thus, it is helpful when there are unfortunate events such as accidents, theft, calamities, etc. It not only protects the financial interests of third-parties but also covers the insured. One can also opt for Add-ons to widen the extent of insurance coverage.
If you just want to purchase two-wheeler insurance because it is mandatory, then opting for Third-party Liability Insurance policy is the right choice. However, if you want to insure your two-wheeler to protect yourself from losses in case of unforeseen events, then going for a Comprehensive Two-wheeler Insurance is the right choice.
Adding the Add-ons
Most popular Add-ons in the Two-wheeler category are Zero depreciation, Pillion Rider Accident Cover, Return to Invoice and Roadside Assistance. Each Add-on has its features and depending upon your requirements, it can prove beneficial to you. Thus, it is essential to understand the coverage that these Add-ons provide, equate it with the risks that you might be exposed to and want to cover, and then choose the most-suited Add-ons.
Choosing Add-ons is not compulsory. If you feel that the Third-party Liability cover and Own Damage cover offered as a part of the Comprehensive Two-wheeler policy is sufficient for you, then you can avoid going for the Add-ons.
Not That Expensive
It might come across that purchasing a Comprehensive Two-wheeler Insurance might be an expensive affair. But when you compare it with the benefits that you derive in terms of the coverage provided, it will not appear to be that expensive.
You can also undertake the following measures to ensure that your policy doesn’t become expensive.
- Increasing your share of the Deductible amount will reduce the premium amount. But note that at the time of claim, the amount paid by the claimant will be higher.
- Be smart while filing claims. If you do not file claims for insignificant damages, you will keep your No Claim Bonus intact and hence reduce your premium amount.
- Also, ensure to renew your policy in a timely manner to keep availing No Claim Bonus.
- Add-ons are important as they offer extra coverage. However, every Add-on might not be suitable for you. Thus, choosing only those Add-ons that are beneficial for you will reduce the premium amount as compared to going for all of them.
- Use an online premium calculator to gauge the price of your policy by feeding in necessary information and choosing your insurance plan and then decide accordingly.
It is important to note that damages to your two-wheeler caused due to normal wear and tear of the vehicle are not covered by the policy. Also, mechanical or electrical breakdown is not taken into consideration.
Okay, So What Should I Do?
Now that you have read about the need for Comprehensive Two-wheeler Insurance, you have to decide if it is for you or not? Going for it should depend upon how you perceive risk. Are you comfortable paying the premium amount? Do you ride your bike often? How risky is your commute? How old is your bike? Do you travel with a pillion rider? Is your bike in good condition? The answers to these questions will tell you whether you need Comprehensive Two-wheeler Insurance such as the one provided by us at Acko.
Insurance policies are now available online. Just a few clicks and you can insure your two-wheeler in a convenient manner. The process is similar to ordering a t-shirt via an e-commerce portal. Leading insurance providers have websites that have detailed information. They even feature blogs to help readers make an informed decision. You can also talk to the customer service executive or send an email if you have any doubts regarding a policy. Make sure to insure your two-wheeler with the most-suitable plan to stay risk-free.
By Nupur Bagal
Nupur works at Acko General Insurance, heading their digital marketing initiatives. Acko is a new age insurance company which raised a record $30 million in seed-funding from venture capitalists like Narayan Murthy’s Catamaran Ventures, looking to disrupt the $10 billion dollar Indian insurance industry.