GENERAL INSURANCE BLOG

Insurance is an umbrella that protects you from the financial burden resulting in the aftermath of the event you are insured against. In recent times, the insurance penetration rate in India has significantly grown with the increasing base of new policyholders. This may be attributed to raising awareness, the increased purchasing power which has resulted in the improved ability to purchase policies, and the steadily growing inflation rates that increase the burden of such financial stress.

Over the years, motor insurance has become a popularised offering by insurance companies. If you are looking for the best two wheeler insurance in India, there are multiple options with various features and price ranges. However, it all boils down to the insurance claim settlement procedure. If the claim settlement is fair and speedy, it is the natural choice for consumers. It is also the most confusing part of insurance that you must consider before purchasing two-wheeler insurance.

How many times can you file a claim annually? What are the required documents? Read on to find the answers to questions similar to these related to two-wheeler insurance claims.

Can you file for a biannual two-wheeler insurance claim?

Yes! The paperwork does not restrict policyholders to specific maximum claims you can file annually. Therefore, you may apply for two or more claims in the same year.

Effect of raising multiple claims within the year.

While there are no restrictions on claim filing, it may not be a good idea to do so frequently for the reasons mentioned below:

1. No claim bonus:
This is an incentive provided by the insurer to the policyholder at the time of renewal in case no claim has been filed within the insured period. In case of multiple claims in the year, the discount rate, usually between 20-50%, is lost with each claim. Therefore, by making a claim, or multiple ones, the insured loses the benefit of a discount at the time of renewal.

2. Increased premiums:
Since the insured person files multiple claims, they are seen as a greater liability than an asset to the insurance company. Therefore, they charge a greater premium from the person when compared to other insured parties that file fewer or no claims at all.

3. Inadequate compensations:
In case of minor damages and losses, it may be best to avoid filing a claim. Deductible items are removed from the repairs bill to compute the allowed damages. If such an amount is minor, we recommend not filing a claim since the compensation will be inadequate and only result in the loss of the no-claim benefit.

4. Limitations on zero depreciation insurance add-on:
This is an add-on facility to a comprehensive two wheeler insurance policy that restricts the number of claims you may file.

Necessary documents to file a claim.

Irrespective of the result of your search for the best two wheeler insurance in India, most insurance companies ask for the following documents for filing a claim:

● Claim form

● Two-wheeler registration

● Tax receipt

● Owner’s driver’s licence

● Insurance proof

● Copy of FIR

With insurance companies striving to make claim filing simpler than before, it may seem logical to claim compensation for even the most minor damages. However, even with the best two wheeler insurance in India and requisite add-ons, that is not the case. You must purchase bike insurance and file claims only after careful consideration.

Click HERE to buy the best two wheeler insurance in India.

Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.

Standalone own-damage car insurance is optional, unlike third-party car insurance. However, you must buy your standalone damage car insurance since it will help you get coverage for damages to your car during an accident or a natural or man-made disaster like a fire outbreak, theft, flood, etc.

What is covered under standalone damage insurance?
By looking at what this policy covers, let's better understand how standalone car insurance functions. A typical own-damage policy will protect from the following:

● Accident-related damages or total loss

● Vehicle theft

● Damage that is beyond repair as a result of fire, lightning, explosion, or self-ignition

● Natural calamities such as landslides, earthquakes, or floods can cause damage

You can file a standalone damage car insurance claim with your car insurance provider if your vehicle is damaged as a result of one of these events. Nowadays, raising a standalone damage car insurance claim is simpler than ever before. You can visit the insurer's website, log in, complete a form, evaluate the damage to your automobile, and then make repairs after the claim is approved.

Factors that affect standalone car insurance premiums.

Your standalone car insurance premium can easily be impacted by a change in any of these variables.

1. Insured Declared Value:
Your car's IDV, or insured declared value, is its current market value and a key component in calculating its own-damage premium. If you decide to give your car a greater IDV, your standalone car insurance will be expensive.

2. Age of the vehicle:
Your vehicle depreciates with time and loses value. As a result, if your car is older, your car insurance premium will decrease.

3. Your location:
If you drive in an urban, congested area, such as a big city, your own-damage auto insurance rate will go up. This is because there is always a chance that the car will be stolen or damaged. The danger is also lower, and the premiums are lower in smaller towns and villages.

4. Car safety:
Installing safety features on your car reduces the possibility of damage. For instance, airbags reduce the likelihood of your vehicle sustaining damage, minimising car insurance premiums.

5. Model of the vehicle:
Any damage caused by an accident to a pricey or luxurious vehicle could be very costly. Due to the high risk associated with such a vehicle, the standalone insurance policy premium for own damage will also be expensive.

6. Engine cubic capacity:
Your car's engine cubic capacity significantly impacts your premiums. Compared to vehicles with engines under 1500cc, the damage premium for vehicles with an engine capacity beyond 1500cc will be higher.

7. No Claim Bonus:
When you renew the policy, your rates will be reduced if you haven't made any claims for auto-related damages during the policy year. As a result, avoiding these claims allows you to pay lesser premiums for your standalone own damage insurance.

Who should buy standalone damage insurance?
If you just have third-party auto insurance at the moment, it is advised that you purchase your standalone damage coverage. It increases the range of protection for your vehicle during emergencies like a car accident, a man-made disaster, or a natural disaster.

Here is the formula to calculate standalone damage car insurance premium:

You must know your car's Insured Declared Value (IDV). Using the formula below, you can easily determine your four-wheeler's IDV:
IDV= (showroom price - depreciation cost) + (cost of any car accessories - depreciation cost)

Once you know your car's IDV, you may use the following method to determine the cost of standalone own damage insurance:
Standalone Damage premium = IDV X (Premium Rate) + Add-on Covers - Policy Discounts and Benefits

Check for new car insurance rates before investing in standalone damage insurance. Contact your insurance provider to get the desired answers if you have any queries.

Click HERE to buy a car insurance policy.

Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.

If you have ever randomly searched for road safety statistics relating to India, you would be concerned. According to data provided by many research firms, the road crash severity, i.e., the number of deaths per 100 road crashes, was 38.6. This implies that over a third of road accidents lead to fatalities. Our numbers are also the highest amongst all countries, making this an issue that requires immediate attention.

While infrastructure and planning of roads are partly to blame, so is driver negligence. Considering that over half the vehicles on roads are 2-wheelers, it becomes necessary to practise safe driving since 2-wheelers do not have the bare minimum safety that cars provide and lead to more significant damages if in an accident. With increased regulations, the demand for 2 wheeler insurance has risen steadily.

Still, riders continue to take unnecessary risks in the form of 3 or more riders, underage driving, and helmet-less pillion riders. While your 2 wheeler insurance covers the driver and vehicle, does it also cover pillion passengers? Read on to find out all about it.

Inclusion of a passenger in 2-wheeler insurance:

2 wheeler insurance is considered a comprehensive cover but is not in reality. By carefully reading the fine print, one can find multiple exclusions which can be added to the cover as an add-on facility. One such cover is to protect your passenger.

If you are considering whether or not to purchase the add-on, we strongly urge you to do so. Since two-wheelers are more vulnerable to accidents, minimal damage to the riders is inevitable. While your comprehensive plan covers you and your vehicle, buying an add-on will insure your pillion rider's life.

Inclusions of the add-on:

The add-on primarily lightens your moral responsibility towards your pillion passenger to keep them protected as long as you're responsible for their safety. In the following events, the insurance company approves the claims filed:

● Compensation for the death of the passenger to their legal heirs

● Payment in case of partial or permanent disability to the passenger

● Reimbursement of hospitalisation expenses incurred to treat the passenger

Who should consider buying the add-on:

While 2 wheeler insurance is mandatory for all, we recommend considering a pillion-passenger add-on as the same. However, suppose any of the following cases apply to you, then consider purchasing it at the earliest to minimise the extent of the financial burden you may have to face.

● If you regularly have a pillion passenger travelling along

● If your regular passenger happens to be a child or a senior citizen, it is best to cover for contingent mishaps

Exclusions to consider before filing claims:

This add-on is undoubtedly helpful in insuring your fellow rider’s life. However, before filing a claim, you must ensure that the following:

● The driver has a valid licence

● The driver was not under the influence of any substance

● The driver must be the owner of the vehicle and must purchase the policy and add-on in his name

● The accident must not be intended to be an act of self-injury by the driver

These are generally excluded conditions that reject a claim. Since making 2 wheeler insurance mandatory, its penetration has significantly increased. Authorities should also consider making policy equipped with comprehensive benefits to cover all related parties and ensure maximum protection of the riders and vehicle.

Click HERE to buy a reliable 2 wheeler insurance.

Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.

Do you own a business and are undoubtful if you need to purchase a public liability insurance policy? This post will discuss why you should get public liability insurance, the advantages, and a list of businesses requiring it. It is advised to have a public liability insurance policy if you deal with members of the public or clients to ensure protection against damage to third-party.

Following are the businesses that are at risk of going bankrupt due to a single lawsuit if they don't invest in the public liability insurance policy:

1. Businesses that produce chemicals

2. Restaurants

3. Contractors

4. Hospitals

5. Universities and colleges

Let's first define public liability insurance policy before discussing these five businesses.

What is insurance for general culpability?

Public liability insurance protects businesses and their owners from being sued if someone gets hurt within their property or causes damage to someone else's property. This insurance pays for the damage costs, which otherwise the insured might have to pay.

For instance, if you host an event and a public member is harmed within your property, your public liability insurance will pay for any associated legal fees and compensation claims that the injured party may make.

What all is protected by public liability insurance:

• Property damage and physical harm

• Cost of counsel

• Cost of a claim
 

What is excluded from the policy:

• Reputational damage or another form of slander

• Accidents involving employees

You can purchase general liability insurance (GLI) if you want more protection. GLI protects a broader range of people, like business owners, employees, and vendors, from these risks.

Here are a few examples of firms that unquestionably require public liability insurance policy.

1. Businesses that produce chemicals:
After the Bhopal disaster in 1984, the government required any company working in a dangerous area to have public liability insurance. The Public Liability Insurance Act of 1991 requires you to purchase PLI coverage to protect yourself from lawsuits arising from accidents and harm to the public.

2. Restaurants:
A necessary component of any restaurant business is public liability insurance. PLI safeguards eateries from the expenses associated with damages. Accidental hot food spills, cutlery that falls, and slick floors are possible scenarios. It also protects the business if a customer claims damages because they got sick from the food.

3. Business owners:
If you do construction, plumbing, or electrical work on a client's property as part of your business, you must have public liability insurance. While working there, the insurance will defend you from any claims against you for injuries to individuals or damage to the customer's property or equipment.

4. Hospitals:
Hospitals are another business that could be sued for injuries or damage to property that happens while doing business. Any harm or death caused due to the doctor's negligence in this situation is not covered by PLI. For such a risk, doctors need professional indemnity insurance coverage.

5. Colleges and universities:
If a fire breaks out on the grounds of your school or college and a few students are hurt, PLI will pay for the cost of legal defense and any compensation demanded by the injured students or their families.

We've talked about a few specific businesses that require public liability insurance, but this is a partial list. Public liability insurance is a requirement if your business interacts with customers, staff, or the public.

Finding a good insurance company and the best coverage for your business takes time, consistent efforts, and deep research. Once you've decided, you'll have an insurance agent to offer advice based on his knowledge and experience. Nowadays, things have become digital, and you can easily buy a public liability insurance policy online with just a few clicks and a hassle-free payment process. It is recommended to always seek legal advice to find the best solution based on your situation.

Click HERE to buy a reliable public liability insurance policy in India.

Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.