Add-on covers in two wheeler insurance (like car insurance) provide extra protection to the policyholder, over and above the coverage offered by a comprehensive two wheeler insurance policy. Some of the popular add-on covers in two wheeler insurance being offered by the insurers today are Zero depreciation cover, Personal Accident cover for the pillion rider, and 24×7 Roadside Assistance.
Personal Accident Cover for Pillion Rider
This cover provides personal accident coverage for pillion riders in the event of the pillion rider’s partial or permanent disability or death while riding the insured vehicle. The amount that can be claimed would depend on the type and the extent of injury suffered by the pillion rider at the time. It is a cover that should be taken if the insured travels with a pillion rider regularly.
Roadside Assistance
This cover would entitle the insured to 24X7 roadside assistance in the event of a breakdown or a mechanical failure of the insured two wheeler. Among the services offered are Emergency Assistance, Towing facility in the event of a breakdown, Minor Repairs at the site of the accident/breakdown, Accommodation benefit due to the vehicle being unfit to ride, etc.
Zero Depreciation Cover
This is also known as Depreciation Reimbursement or Bumper to Bumper cover. The Insurer will pay you the amount of depreciation on account of wear and tear which is deducted on the value of parts replaced under own damage claim, lodged under the own damage section of the policy. They will pay for the first 2 claims reported to them during the Period of insurance.
Accessories Cover:
This add on would provide coverage to any electrical or non-electrical accessories added to the two wheeler, resulting in the insurance company covering the cost of replacing/repairing them.
Long Term Two Wheeler Insurance:
Most Insurance companies now offer long term two wheeler insurance plans that have tenure of 2-3 years. This is ideal for both the vehicle owner and the insurer since they need not worry about renewal of insurance for up to 3 years. The advantages of the Long Term Policy include:
- Saves TP Premium over 2-3 years – with almost an annual increase on TP premium, by buying a Long Term policy and paying premium upfront for 2-3 years, this TP premium increase will not be applicable
- Avoid Yearly Renewal – the owner need not have to track the renewal dates every year of the two wheeler in a long term policy.
- NCB Protection for the entire period – if the insured has eligibility for a 25% NCB, the same will be applicable on the premium for the entire duration of the cover (2-3 years). Even if there is a claim on one of the policy years, the applicable NCB will fall to the lower slab, but not become NIL.
- Long Term Coverage – A single insurance policy is issued for the entire period of 2-3 years and hence the owner can ride around stress free knowing that the coverage is in place for the duration of the policy.
- Higher OD Discounts – given that the insured is committing to a longer period of insurance and the same is being paid upfront, the insurers are offering attractive discounts upfront to ensure competitive premiums for the long term cover.