Since a motorbike insurance plan is legally compulsory, you cannot avoid the plan. However, you can definitely choose the type of plan you want to be covered under and the extra coverages available under the plans.
There are broadly two types of insurance plans - a third party liability policy which is legally compulsory and a comprehensive coverage which provides a better coverage. When we talk about extra coverages, they are called add-on covers which are available under the insurance plans and are voluntary.
Add-on covers, like riders, seek to enhance the scope of coverage extended under the two-wheeler insurance plans and can be added by paying a small extra premium. The thought of extra premium makes individuals averse to the idea of such add-on covers and they are given a miss. Is the practice sound? Are the add-on covers necessary?
Before we discuss their importance, let us see which covers come under the context of add-on covers available for a two-wheeler insurance plan.
- Personal Accident Cover - A very common and a very important add-on cover is the personal accident cover. There are usually two variants of the cover. One is for the owner/driver of the bike and the other is for the pillion rider or passenger. The first cover comes inbuilt in most of the comprehensive plans and it is the second cover which usually forms the part of the add-on covers list.
- Zero depreciation cover - In case of a claim, the insurer pays only the depreciated value of the parts damaged and not the actual cost incurred in replacing them. This cover ensures that this depreciation factor does not affect the claim amount and the actual amount of the parts damaged are paid without considering their depreciated value.
- Return to invoice - When your bike suffers a total loss or is stolen, the Insured Declared Value of your vehicle is paid which is the market value less the applicable depreciation. With this add-on, you can avail the actual invoice price of your two-wheeler in the above mentioned cases which would also include registration charges and the road tax paid.
- Medical cover - Another commonly found add-on coverage facility which undertakes to provide for the medical expenses incurred due to an accident suffered from the insured vehicle. Some plans also come with a daily cash allowance benefit which provide a fixed amount of money daily for each day of hospitalization from the said accident.
- Cost of consumables - Consumables include nuts and bolts, engine oil, lubricants, sealants, tyres, etc. whose value is not paid in a claim. By adding this cover, the cost of these consumables would also be met by the insurer
- Roadside assistance - This cover comes in handy when your two-wheeler breaks down in the middle of the road and you have no option of towing it to a nearest garage. This feature would ensure that your insurer would provide you with 24*7 services whenever demanded.
These are some of the basic covers available under a two-wheeler insurance plan and now we come to the all-important question of the necessity of these coverages. If you have read the details of the coverages mentioned, you would have grasped one thing -each one is an added coverage at a very low premium outgo.
Some basic covers like the Personal Accident and the Zero Depreciation covers are very pertinent and very relevant when it comes to a motor insurance claim. Where a personal accident cover would provide an added benefit in case of an accidental death or disability, the zero depreciation cover would ensure a higher claim amount.
The other three also help in raising the amount of claim received in your two-wheeler insurance policy. If the extra premium is your concern, don’t fret! The corresponding cost of the covers is ridiculously low.
With a very minor dent in your pocket (on the premiums of such covers), you can ensure a very comprehensive coverage and avoid a bigger dent in case of claim (when the insurer pays a reduced claim and you have to meet the actual expenses from your own pocket). So, buy the add-on covers, because though not legally compulsory, they are definitely necessary.
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