Standard Deductions in a Bike Insurance claim
Against popular belief, the entire cost of your loss or repairs is not borne by the Insurance Company. There is something called as a �deductible� or �excess� which is the amount the vehicle owner needs to pay from his own pocket whenever there is a motor insurance claim. The deductible has two types, compulsory deductible and voluntary deductible.
It is the specific amount pre-fixed by the Insurance Company which the policyholder has to pay regardless of the claim amount. A high compulsory deductible forces the owner to be more cautious, as in the event of a claim he will have to pay a higher amount.
If the policyholder wishes to receive a discount on the policy premium, he can opt to pay an amount over and above the compulsory deductible. The policyholder is basically rewarded with a discount for sharing the cost of the repairs. For instance, if you choose to pay a voluntary deductible of 4000 Rs, you receive a discount of 20%-30% on your policy premium. However, please note that you need to pay the voluntary deductible in addition to the compulsory deductible.
Depreciation of vehicle parts affects the claim amount. Which means, the payment is made on the basis of the current value of your vehicle parts and not the value of new parts. This deduction can be ignored if you opt for a zero-depreciation cover.
The consumables of your bike such as engine oil, coolant, fuel etc is not covered by your bike insurance policy. However, an add-cover of consumables takes care of this problem if you are willing to pay slightly additional premium.
Major Exclusions in a Bike Insurance policy
Before proceeding with your bike insurance claim it is important that we understand the limitations and exclusions of our policy. Hence, the following are the exclusions of a Bike insurance policy:
- General wear and tear of the vehicle and normal ageing
- Any Mechanical or Electrical breakdown
- Loss or damage because of war, nuclear risk or mutiny
- Damage to the vehicle because of driving under the influence of alcohol, drugs or any other intoxicant
- Non compliance of the manufacturer guidelines
- Depreciation of the vehicle and any consequential loss
- Damage or loss outside the policy period