Benefits of add-on cover for your Two Wheeler Insurance

In 2017, around 1.47 lakh people died in India because of road crashes. According to the General Insurance Council, 60% of vehicles are uninsured and most of them are two-wheelers. Considering the statistics, it is of utmost importance to have bike insurance to secure optimum financial protection.

Natural and manmade calamities are covered under the two-wheeler insurance policy.

The Motor Vehicles Act, 1988 makes it compulsory to buy at least the third party insurance.

• POLICIES

1. Third-party cover: Third party insurance for bike covers the damage caused to a third person, property or vehicle. The policy, however, does not cover any damages done to you or your vehicle.
2. Comprehensive cover: The cover secures the vehicle owner. The insurance premium varies as per the inclusions and it covers up all the major risks and damages. After comparing various products in the market, you can choose a value for money product.

• COVERAGE
• Why a regular coverage is not sufficient?
• In India, Third Party Insurance is mandatory. It provides only accidental property damages, injury; the death of a third party and it does not provide coverage to the insured vehicle.
• It is difficult to find extended benefits in an inexpensive plan.
• WHY DO WE NEED ADD-ONS?

1. To Cover Personal Accidents

For most of the two wheeler insurance plans, one of the most important add-ons is personal accident cover. It covers the driver of the motorbike.

2. To get the invoice price of your vehicle

If there happens to be loss or theft of your bike, the insurance company pays up to the IDV (Insured Declared Value) of your two-wheeler. The IDV is the prevailing market value minus the depreciation applied to your vehicle. To get the actual rate mentioned on the invoice of the bikes with the road tax and charges of registration, one must check the Return to Invoice.

3. To Cover the Depreciation & Get Full Value

The depreciated value of damaged parts of your bike, are considered by your insurance provider while you make a claim. It does not return or cover the actual amount you paid in replacing a depreciated part. The depreciation factor will not show up in the picture if you take the zero depreciation cover and you will get actual total cost for the damaged parts.

4. To Get Roadside Assistance

Roadside assistance add-on is needed to help you during an unwanted breakdown of your two-wheeler. You can easily receive any help with breakdowns with the help of a mechanic or alternative solutions if you have taken an add-on regarding the same.

5. To Cover the Consumables

Repair or replacement costs of consumables such as nuts and bolts, engine oil, lubricants, etc. are not covered in the repair and replacement costs. There is a specific add-on that covers these additional expenses.

• Conclusion

Add-on covers are essential for the basic policy. The two of the most popular add-ons that you can consider are personal accident cover and zero depreciation. Calculate the premium with a two wheeler insurance premium calculator to fit all your needs in your budget. Before zeroing down on a plan and the add-ons, one must compare them to settle only for the best.

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