Report Wire

Tag: third-party liability insurance

  • What to contemplate earlier than shopping for insurance coverage for e-two-wheelers?

    What ought to I take into account for buying an electrical two-wheeler insurance coverage coverage?

    —Name withheld on request

    Both the method and ticking the packing containers for e-two-wheeler insurance coverage are the identical as shopping for petrol two-wheelers. If you purchase a car for the primary time, it’s good to make sure the third-party legal responsibility insurance coverage is bought for a interval of 5 years. Besides, you need to take into account shopping for the next add-ons: zero depreciation cowl, and return to bill cowl. Some insurers supply protection for battery safety, which covers claims for water ingress to battery. You ought to go for this add-on, if provided. Some insurers are extra aggressive in providing insurance coverage for electrical autos. So, you need to make an intensive comparability earlier than shortlisting an insurer.

    I’ve a medical insurance coverage from HDFC Ergo. I used to be identified with osteonecrosis of the precise hip final yr for which I had a core decompression surgical procedure. I need to know if this data should be disclosed at time of renewal. If sure, then how ought to I do it and what modifications it might have in my renewal premium?

    —Kumar Saurabh

    In the given case, since you’re already insured, no additional disclosures are required to the insurer. If you had filed a declare then the insurer may have the medical particulars, however even in case you didn’t file a declare, you aren’t required to tell the insurer.

    Note, any change in medical situation of the policyholder doesn’t affect renewal premiums. By legislation, insurers can’t apply a claim-based loading on renewal premium for a person policyholder. If premiums are modified then they need to be modified for all folks in an age group and can’t isolate you alone. Premium for a similar age could range however solely whether it is proposed and accepted by a policyholder earlier than issuing an insurance coverage. After the preliminary coverage issuance, insurer will not be allowed to use extra loading and should cost a uniform fee for a bunch. However, in case you miss a renewal, the insurer can change the phrases of the coverage , together with premiums, for you. So, in your case, well timed renewal is important.

    What is ‘premium smoothing’ in insurance coverage parlance, and the way does it assist?

    —Name withheld on request

    Premium calculation for any danger considers a number of elements like previous losses, out of the pocket bills, and so on. Insurers need regular premium with few modifications, and amortize the fee affect of all elements over a few years. It helps keep away from a steep rise in premiums for policyholders, making it reasonably priced. The value affect is handed to policyholders in a gradual manner.

    Abhishek Bondia is principal officer and managing director, SecureNow.in.

    Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
    Download The Mint News App to get Daily Market Updates.

    More
    Less

    Updated: 08 Jun 2023, 10:38 PM IST

  • 5 issues to think about earlier than buying a two-wheelers motor insurance coverage coverage

    One of the commonest modes of transport in India for day by day trip is a two-wheeler. Since driving by the visitors congestion amid a busy schedule generally is a dangerous affair, it turns into pertinent to have a two-wheeler insurance coverage coverage.

    “The very first thing to ponder whereas buying your new bike’s insurance coverage is whether or not to go for a third-party legal responsibility insurance coverage or to go for a complete two-wheeler insurance coverage,” stated Animesh Das, Director – Motor Underwriting, ACKO Insurance.

    Here are the 5 issues that it is best to know if you purchase a two-wheeler insurance coverage coverage.

    1. Third-party legal responsibility insurance coverage vs complete insurance coverage

    View Full ImageSource: Mint analysis

    It is necessary to match numerous options and worth of the coverage earlier than buying. Certain issues to bear in mind are –

    To Add-on or to not add-on

    A primary complete coverage often doesn’t deal with all of the dangers related to proudly owning and driving a two-wheeler; add-ons care for that. Add-ons are separated from the core coverage as each bike proprietor’s wants differ.

    “Adding add-ons to your complete coverage will enhance its protection however may also enhance its worth/premium. Therefore, select appropriate Add-ons: Zero Depreciation, Pillion Rider Cover, and Roadside Assistance and so on.,” Das.

    The IDV Factor

    Insured Declared Value (IDV) is the present market worth of your two-wheeler: the worth you’ll obtain in your bike’s complete loss or theft. As IDV has a direct affect in your insurance coverage premium, it needs to be declared precisely.

    IDV is a dynamic worth, recalculated throughout your coverage’s renewal primarily based on the next system.

    IDV = (Listing worth acknowledged by producer – Depreciation) + (Additional equipment – Depreciation)

    Going for Voluntary Deductible

    Types of deductibles: Compulsory and Voluntary.

    Voluntary is deductible added on high of obligatory deductible. This means you conform to pay a voluntary quantity in the course of the declare settlement. Increasing the Voluntary deductible decreases the insurance coverage premium however reduces the declare quantity obtained since you pay much less premium in comparison with not choosing Voluntary deductibles.

    Getting insured

    Choose an insurer who offers a passable expertise all through your buyer journey. Researching the insurer’s declare settlement ratio, consumer opinions and social media handles would assist you to perceive the model’s credibility.

    “Bike coverage renewal needs to be undertaken periodically. Generally, bike insurance policies final a 12 months. Never overlook to resume your bike’s insurance coverage coverage or trip with out a legitimate insurance coverage coverage,” stated Das.

    Do you’ve got a private finance question? Send in your queries at [email protected] and get them answered by business consultants

    Subscribe to Mint Newsletters * Enter a legitimate electronic mail * Thank you for subscribing to our e-newsletter.