When choosing a two-wheeler insurance plan, factors like the bike’s age, engine capacity, and accessories are crucial. Understanding the deductible is vital, as it significantly impacts the premium cost.
Deductible Basics
A deductible is the amount you must pay out of pocket before the insurance company covers your loss in a claim. While comprehensive policies cover most expenses, deductibles are the costs you bear during a claim. There are two main types: compulsory deductible and voluntary deductible. *
Compulsory Deductible Bike Insurance
Compulsory deductible is the amount the insurer deducts on each claim, mandated by regulations. Also known as standard or compulsory excess, this fixed amount is specified in every bike insurance policy. For two-wheelers, the mandatory deductible is set at ₹100 for each claim. This means that you pay this amount in case of a claim, and the insurer settles the rest.
For instance, if the repair cost for your bike after an accident is ₹2000, and the mandatory deductible is ₹100, you pay ₹100 before the insurer covers the remaining claim amount.
Voluntary Deductible In Bike Insurance
Voluntary deductibles, optional for policyholders, supplement the compulsory excess. The Insurance Regulatory and Development Authority of India (IRDAI) sets the amount policyholders commit to pay during each claim, within a predetermined range, making the insurance plan more affordable with a premium concession. #
Choosing a voluntary deductible allows you to purchase a two-wheeler insurance policy at a reduced cost. This is unlike mandatory deductibles, which do not result in lower premium costs.
For example, if you agree to a ₹2,500 voluntary deductible and have a repair cost of ₹12,000 after an accident, you pay ₹2,500 in addition to the compulsory ₹100 deductible. The insurer then covers the remaining claim amount as per policy terms.
Comparative Overview: Compulsory vs. Voluntary Deductible
| Compulsory Deductible In Bike Insurance | Voluntary Deductible In Bike Insurance |
| A fixed, predetermined amount set by IRDAI during each claim. # | A voluntary amount in addition to the mandatory deductible during each claim. |
| Also known as compulsory excess, unchangeable. | Also known as voluntary excess, optional within a specified range. |
| Aims to discourage minor claims. | Offers a concession on the premium in exchange for agreeing to a deductible. |
| Compulsory deductible results in a relatively higher claim amount. | Voluntary deductible encourages claiming a comparatively lower amount. |
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Pointers To Bear In Mind
- Deductibles, distinct from shared policy costs, are paid pre-claim settlement.
- IRDAI sets the mandatory deductible, while you choose the voluntary deductible. #
- Payment for deductibles occurs only upon accepted claims.
- Mandatory deductible is applicable irrespective of voluntary choices in claim settlement.
- Voluntary deductible amounts, selected from a range, affect financial goals.
Considering all elements influencing premium costs, including deductibles, is crucial in selecting the ideal bike insurance policy. Visit your insurance provider’s website to compare third-party bike insurance policies and find the premium cost that aligns with your budget.
Opting for a voluntary deductible can result in a lower premium, making it a wise choice for safe drivers. Ensure that you read the policy document for a comprehensive understanding of mandatory and voluntary deductibles in your own damage bike insurance. Make sure you renew bike insurance on time. ##
* Standard T&C Apply
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.