Two Wheeler Bike Insurance 424 views March 15, 2019

What is the Importance of Buying Add-on Covers While Purchasing a Two Wheeler Insurance Plan

Many people question the importance of paying for a 2 wheeler insurance policy. What they fail to realize that insurance is actually a simple and inexpensive way to stay protected. Be it life, health or assets including home or vehicles, buying an insurance policy helps in the long run. As opposed to most other insurance policies in India that are voluntary, buying vehicle insurance is compulsory in our country. Under the Motor Vehicle Act of 1988, it is compulsory for vehicle owners to ensure their vehicles before plying them on the road. The same applies to two-wheelers too, thus, necessitating the need to buy a 2 wheeler vehicle insurance plan.

A major percentage of the population refrains from paying extra on insurance or spending their money on buying appropriate vehicle insurance. They may then consider buying a cheaper version that covers only the amount equivalent to the compulsory third-party insurance claim as it is compulsory. As per the provisions of the third-party insurance plan, the insurance company is liable to pay for the damages caused to life or property of the third person owing to any kind of accident with the vehicle. The vehicle may be a two-wheeler or a four-wheeler, though in India one finds an increasing number of people dependent on two-wheeler vehicles for their daily conveyance.

The importance of buying add-on covers

However, a comprehensive motor vehicle insurance policy is recommended for those looking to buy a plan that serves for more than provide cover against liabilities arising from third-party damage or injury. In addition to the necessary comprehensive cover, insurance companies also offer add-on covers that promise additional protection other than an ordinary 2 wheeler vehicle insurance plan. One may choose among the available list of add-on covers or riders by paying in addition to the basic 2 wheeler insurance premium charged by the insurance company. Listed following are reasons that help understand why add-on covers are required and must be considered while buying 2 wheeler insurance in India. They are:-

To Cover Against Personal Accidents

This is one of the most common add-on covers that people buy to guard themselves against unwarranted road accidents. That many people succumb to road accidents every year in India is not uncommon. Increasing population coupled with growing sales in two-wheeler vehicles has resulted in a spurt in the number of fatal accidents that people meet while driving. Paying extra over and above the basic premium towards personal accident cover ensures that in case of death or disability (partial or total) due to grievous injury, the policyholders of their family members are entitled to the insured amount determined while buying the policy.

To Cover the Invoice Price of Your Vehicle

This is another add-on cover that most people add to their 2 wheeler vehicle insurance policies. In the event of your two-wheeler vehicle getting stolen or damaged beyond repair, the insurer pays the Insured Declared Value (IDV) of your vehicle. The IDV is calculated as the current market value of the vehicle minus the depreciation amount charged on the vehicle. However, if the insured wishes to recover the entire amount which is equal to the actual rate mentioned on the invoice of the vehicle inclusive of road tax and registration charges, then the insured may consider paying for the rider “Return to Invoice” to avail the same.

To Cover Price of Damaged Parts

In case of damage caused to the vehicle during an accident, the insurance company agrees to pay only the depreciation value of the damaged portions of the two-wheeler vehicle. No insurer agrees to pay the actual amount the policyholder may have spent in replacing those parts. Buying a zero depreciation cover ensures that the insured get the actual amount of all the parts damaged due to an accident.

Medical Cover

This is one of the add-on covers that the insured must consider paying with their 2 wheeler insurance price. Opting for this rider and paying towards it, the insurance company agrees to pay off the medical expenses incurred for treatment of the insured due to the accident. Some insurance companies, in lieu of this rider, avail cash allowance to the insured for a fixed number of days during stay at the hospital for treatment purposes.

Roadside Assistance Cover

Breaking down of two-wheelers on the road is not an uncommon incident. A lot of effort and time is spent seeking necessary help for repair or replacement of the vehicle parts. Paying nominal charges towards this add-on rider ensures the added facility of roadside assistance as promised by your insurance company.

To Cover the Cost of Consumables

The consumable parts of two-wheeler vehicles mainly consist of its nuts and bolts, sealants, lubricants, engine oil, etc. Insurance companies while handing over the insured amount to the policyholder do not pay towards these consumables. An additional nominal amount over and above the basic 2 wheeler insurance premium amount ensures that the costs of these consumables are also covered in the policy.