Explained: Know how to cover bike, car insurance policy with benefits; New motor insurance rules & more

One single policy will cover both car and bike; driving slow and safe will even bring down the load on your monthly premium

Explained: Know how to cover bike, car insurance policy with benefits; New motor insurance rules & more -
Now a vehicle owner can a buy Motor Insurance policy based on their driving behavior. The (IRDAI) Insurance Regulatory and Development Authority of India has permitted the general insurance companies to launch ‘Telematix-based motor insurance cover’ such as ‘Pay as you Drive’ and ‘ Pay how you Drive’. The policyholder now can pay the premium based on how they drive.

Apart from this if a person owns more than two vehicles they can seek floater motor insurance, exactly the way how it is done in ‘health insurance.' The premium under the floater policy is slightly higher than that of the customary policy, however, it is better for those who have more than one vehicle, instead of buying multiple policies. The motor insurance renewal head of Policy Bazaar.com Ashwini Dubey on the new add-on permission granted by IRDAI said “The new rules will benefit those who are not the frequent user of vehicles and those who have more than one car.” 

Beneficial for employees working from home:
The president of Liberty General Insurance Udyan Joshi, said “We welcome this new policy, especially during the time when this pandemic has totally changed our travel and work culture. This add-on cover will surely attract the employees in the formal sector working from their home.”

Third-party cover for old vehicles:
The motor insurance that you buy has two elements. Third-Party and the Damage claim cover jointly comprise a comprehensive policy cover. For driving a vehicle on the road, one third-party cover is essential whereas the cover claiming damage is voluntary. If your vehicle is more than 10 years old then you can give up this component and can only bear a third-party cover to save the premium.

The benefits of anti-theft device:
The anti-theft device has its own importance in providing security to the vehicle. There are two prime benefits of installing it. It enhances the security of your car and second, the insurance holder can claim a rebate on the premium. One thing that has to be noted is that the rebate can only be claimed if the device is approved by the Automotive Research Association of India.

A volunteer deduction lowers the burden on your premium:
Almost all Insurance policies are subjected to the mandatory deduction. It is that portion of the claim that the policyholder has to bear. Let us suppose, the deduction in your policy is Rs 1000 and the claim amount if of Rs 10,000. This implies that the Insurance Company will pay you a sum of Rs 9000 and the remaining 1000 thousand will be borne by the policyholder. The mandatory deduction is fixed by the Insurance Company. It is not relevant with the premium. But, if you are willing to bear additional deduction and financial load during damage then it will help you lower the burden on your premium.