Every individual who wishes to take his vehicle out on an Indian road must ensure that the vehicle is insured. In most cases, two wheeler insurance is offered to customers who purchase the vehicle at the showroom itself. Once the insurance has expired, the policy can be renewed or changed as per the customer’s preferences. Since insurance is a contract of agreement between an individual and an insurance company, it is essential that you read through the entire policy document carefully and understand what it covers and what it excludes as possessing thorough knowledge about your insurance package will make it relatively easy to go about the company’s claims process.
Following are some of the main benefits of reading through the policy document with care:
Inclusions and Exclusions
The policy document will have explicit content regarding the circumstances and situations wherein you will be eligible to make claims towards damages or loss. It will inform you in detail regarding your rights and the compensation you can expect in case of unforeseen events. The policy document will also tell you about all the exclusions and the circumstances under which you shouldn’t claim insurance.
Two wheeler insurance policies are mainly of two kinds – comprehensive and third-party. A zero depreciation cover can be purchased in addition to your comprehensive two wheeler insurance policy. The insurance company, when compensation the policyholder for a certain damage or loss, will subtract a part of the amount as depreciation, but such a deduction will not be applicable to you if you have purchased a zero depreciation cover. Therefore, the amount of money you can claim will be slightly more if you purchase a zero depreciation cover.
Cashless claims are considered more convenient alternatives to reimbursement claims. In cashless claims, the policyholder will not have to incur costs on repairs unless the cost of repairs exceeds the claim amount. Since not every insurer offers cashless claims, reading through the policy will help you understand whether you are eligible for the same or not.
Insurance companies usually deduct a specific sum of money from the claim amount when a claim has been made. The amount will be different for different policies, so make sure you read through the fine print to understand how much money will be deducted from your claim amount.
No Claim Bonus
In case you have not made any claims in the previous year, you may be eligible for a no claim bonus. Going through your policy document can help you understand how you claim this bonus.
Terms of Cancellation of Policy
If you are not happy with the terms and conditions of the policy, or the service provided by the insurance company, you can always cancel your policy. To do so, you will have to read through the cancellation terms of the policy.
Claim Registration Process
If your vehicle is damaged or lost, a claim will have to be registered, and going through your policy document will help you understand the process and go about it with relative ease.
In addition to the aforementioned benefits, reading through your will increase your knowledge about the plan and everything to do with it.