Natural disasters can strike anywhere and anytime and cause great damage to your belongings. This includes damage to one of your most valuable asset, your bike. For this reason, it is important to insure the vehicle with the right automobile insurance policy. But does your bike insurance cover natural disasters? Here is a detailed answer to that question:
Does Traffic Insurance Cover Natural Disasters?
Fortunately, it is. A bike insurance policy can protect you from hurricanes, floods, earthquakes, storms, etc. It covers all kinds of damage to your two-wheeled vehicle due to natural disasters. Make sure you have comprehensive insurance coverage for your vehicle. This is because third party bike insurance does not cover any vehicle damage caused by a natural disaster.
A comprehensive bike insurance policy is a contract between the bike owner and the motor insurance provider, in which the latter undertakes to cover theliabilities to third parties and bike damage caused by natural disasters, accidents, man-made disasters, fire and accidents, theft, etc.
On the other hand, third-party bike insurance is a bike insurance policy in which the insurer undertakes to cover only the third-party liabilities of the car owner.
All comprehensive insurance policies in India cover damages caused by the occurrence of natural disasters as well as man-made disasters. Moreover, you do not need to pay any additional fees to cover the damages covered by your motor insurance policy.
Let’s understand this with an example – a major earthquake hits your city and causes great damage to your belongings, including your bike. Repairing a damaged bike is digging a hole in your own pocket. However, if you have a comprehensive bike insurance policy, your insurer will compensate for the loss of your vehicle.
However, this is not possible with third party insurance. Even if you have the best motor insurance, but with third party coverage, you will have to bear the costs of repairing/replacing your vehicle for damage caused by natural disasters.
That’s why you need a comprehensive insurance policy if you want your car insurance to cover the damages to your vehicle due to a natural disaster.
Benefits of bike insurance in natural disasters
Choosing a comprehensive bike insurance policy is an investment and will help you through tough times. Here are some of the benefits associated with a comprehensive coverage during natural disasters:
- Benefit of cashless claims
One of the biggest benefits of having bike insurance during a natural disaster is taking advantage of cashless compensation benefits. If your vehicle is damaged by a tornado, you can contact your insurance company and claim cashless compensation through your bike insurance app. The insurance company will arrange for your damaged vehicle to be towed to the nearest garage and bill them.
- Providing No Claim Bonus (NCB)
If you have chosen a comprehensive insurance policy, you can take advantage of the No Claim Bonus. In this way, if you do not need to make any claims during the policy period, you will receive a discount on your premium renewals. You also have the provision to roll over your existing NCB with a new policy.
- Hassle-free inspection
Another benefit of having a comprehensive bike insurance policy online is the hassle-free review and claim process. If your insured vehicle is damaged in a natural disaster, do not panic. If you choose a comprehensive plan, you can enjoy the benefits of seamless auditing with high-quality services.
All comprehensive car insurance plans offer coverage against natural disasters. However, you can buy two-wheeler insurance add-ons to expand the coverage of your policyavailable withyour bike insurance company. Remember to follow the guidelines outlined above to have your motor insurer approve your car insurance claim.
Smriti Jain is the owner and senior content publisher at Financesmarti. Financesmarti is a website where she shares a lot of useful stuff for the people and business of India. This includes small business ideas and other banking information, as well. Smriti completed her education in science & technology from Delhi University. Smriti usually has interests in digital marketing now, and she has chosen this career for the full-time opportunity. The primary purpose of starting this blog to provide quality information on the banking industry to the people.