A couple of decades ago, when KTMs and Pulsars had not arrived, the classic scooter was the prized possession of every middle-class family. Even a small scratch would be a reason for a mini heart attack, let alone a major accident. The most pressing issue was to find a good mechanic, who could repair the two-wheeler at a reasonable cost. Two-wheeler insurance was not very popular then. Though having insurance has been mandatory according to the Motor Vehicles Act, 1988, many people chose not to get one.
Getting an insurance claim processed was a cumbersome job and enforcement of rules were also lax. Times have changed, and it is unimaginable to drive a two-wheeler without having an insurance plan now. The enforcement of rules is stringent, but the primary reason for two-wheeler insurance’s popularity is the hassle-free experience that cashless policies provide.
What is the cashless claim facility?
With the advent of numerous digital payment apps, it has become very easy to understand cashless two wheeler insurance. Similar to a digital payments app, cashless insurance policies have no cash component. If you have met with an accident, then you can visit the nearest garage that is certified by the insurer, and you will not have to pay any cash upfront for the damages. The garage will repair the two-wheeler and the insurer will settle the claim on your behalf. The system works just like cashless health insurance, where the insurer directly deals with the hospital.
Types of two-wheeler insurance
As the name suggests, this policy provides a wide variety of protection. It covers third party liabilities, accidental death, personal losses, property damage from man-made or natural calamities and other mishaps including medical and legal expenses. Insurers provide other add-ons, which are optional. The premiums for comprehensive insurance are high due to the wide scope of protection provided by the policy.
It is mandatory to have third-party bike insurance according to law. The premiums for this policy are cheaper as compared to a comprehensive plan, but the protection is also limited. It primarily covers all the legal liabilities that arise due to damage or injury caused to a third-party person or property from the insured two-wheeler. Only some personal losses like accidental death, body injuries and permanent disability are covered by the policy.
Why is two-wheeler insurance important?
Many people do not renew their policy on time or purchase one just because it is mandatory by law. Having an active two-wheeler insurance plan is the rational thing to do. A vehicle on the road is a potentially dangerous and lethal object for the people in its vicinity. A vehicle may just roll down a slope, or a driver may genuinely lose control. In case the vehicle owner does not have the means to take care of the damages caused by the vehicle, it will be a gross injustice to the victim. Two-Wheeler insurance to an extent protects the rights of innocent people, who may be at the receiving end without a fault of theirs. Besides all this, it also covers the damage caused to the vehicle.
Benefits of cashless policy
The cashless claims facility has increased the benefits of having a two-wheeler insurance manifold. It provides convenience to the policyholder, you need not stress about the settlement of the claim. The insurer directly deals with the garage. It also saves your energy spent on searching for an adequately equipped garage. Insurance companies have a large network of garages and the list is shared with the policyholder. The garages chosen by the companies are well equipped and have proper expertise in repair. In case, there are no certified garages nearby, you can get your two-wheeler repaired at any garage and provide the service bill to the insurer, who will reimburse you.
Bike insurance policies come with a deductible clause, which means you will have to pay a certain amount before the insurer pays for your claim. The Insurance Regulatory and Development Authority of India has capped the compulsory deductible at Rs.100. However, a policyholder can also opt for a voluntary deductible, which can help in reducing the insurance’s premium.
Cashless policies have made claiming insurance cover a seamless affair. In case of an accident, note down the registration number of the third-party involved in the accident. Then look for witnesses, if there are any, note down their contact details. Inform the insurer at the earliest and take the vehicle to the nearest certified garage. File an FIR in the nearest police station and keep a duplicate copy. After your claim is recorded the insurance company will contact you and will ask for relevant documents. A company official will make an appropriation of repairs and release the reimbursement. Comprehensive two wheeler insurance provide you with the maximum protection at an affordable rate. You can tweak the add-ons and choose other insurance plans on Finserv MARKETS, a one-stop solution for all financial needs.
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