Why should you always check your two wheeler policy document carefully once you receive it? Here is what you need to look out for in your policy document.
Insurance is mandatory for every vehicle running on Indian roads. Generally, the insurance policy accompanies your two wheeler purchase. After its expiry, you can choose to renew the policy with the same insurer or change it.
Remember, insurance is an agreement between you and insurer. As with any other agreement, you must read all the clauses in the policy. There is a limit to which the insurer will explain the policy to you verbally. Besides, having complete knowledge about the policy will help you make claims easily.
Inclusions
The policy explicitly mentions the circumstances under which you are eligible to claim for a loss or damage. It informs you about your rights as well as when you can expect compensation.
Depreciation
There are two types of bike insurance: third-party & comprehensive. You can add zero depreciation cover to your comprehensive policy. While compensating you for a certain loss or damage, the insurance company will deduct some amount as depreciation—except when you have opted for a zero depreciation cover. So, you can claim more in a zero depreciation policy compared to the one without the cover.
Cashless Insurance
Check if the policy provides cashless insurance. This is a better alternative to reimbursement claims, as you need not pay for repairs unless the repair cost is more than the claim amount. The cashless facility can be availed only if you repair your two wheeler at the insurer’s network centers. However, it may also be noted here that not all insurers offer cashless facilities for two wheelers and hence you should get this clarification at the time of buying your two wheeler insurance policy.
Compulsory Deductibles
On every claim, the insurance company deducts a certain amount from the claim amount. This is the compulsory deductible. The amount varies depending on the cubic capacity of the engine and is pre-determined by the IRDA.
No Claims Bonus
You could get a discount on the premium for not making a claim in the previous year. This is the no claims bonus. Read the policy document to see how you can avail the no claims bonus. By making optimum use of this facility, you could reduce your premium by up to 50 per cent.
Cancellation Terms
You might want to switch your insurer if you are not satisfied with the service. Here, you should be aware of the cancellation clause and the procedure you need to follow. When you cancel the policy, you are eligible for a refund. The terms of the refund will also be mentioned in the policy.
Claim Registration Process
In case of loss or damage to you vehicle, you will have to register a claim. Review the process for filing a claim in the policy document. It will provide the steps for the claim process and name the documents you have to submit to support your claim.
References
On browsing through the document, you might find references to a different section. Remember to glance through to the referred section immediately for a better understanding of the clause. To make the most of your two wheeler insurance, you should read the policy document carefully. Having complete knowledge of your policy can be a big help.
