Many times, people are worried about thinking that they have insured the vehicle, but do not know if their insurance will provide protection in every situation? Please read this story for knowing the car insurance coverage.

Subas Tiwari

Know all about car insurance and its claim along with terms and conditions

In a natural disaster, violence, riots, etc., everyone is worried that the vehicle will not have to be repaid with its own money. Such concern can be overcome with On Damage (OD) and Add-on Cover Insurance. These insurance acts as the safety shield of the vehicle so that the owner of the vehicle remains carefree.

Important of these insurance

1^st example: Ranjeet used to park his car with the help of a school wall built in front of the house. One night an earthquake struck the school wall on his car. The car suffered significant damage. It cost 15 thousand rupees to get the car right, which was raised by the insurance company. If Ranjeet did not have OD and add-on cover insurance, then the entire 15 thousand rupees would have gone from Ranjeet ‘s pocket.

2^nd example: Reeta goes to office with her car. One day the parking lot filled with rain. His car was submerged in water. They started the car when the water came out but did not start. It was discovered that the engine was flooded. It cost about 20 thousand rupees to get the car right. Reeta had OD and add-on cover insurance. She did not have to spend even one rupee from her pocket.

Keep these things in mind

NCB: If you have taken any insurance for the car and have not made a claim, then you can avail the No Claim Bonus (NCB). Through the NCB, you can reduce the premium of vehicle insurance by 50%.

It is not necessary to take insurance from the dealer: If you are buying a new car, then the dealer says to give insurance. It is not necessary to take insurance from the dealer you are taking the vehicle from. First compare the insurance of other companies present in the market, which can give more and better facilities from the company.

Types of vehicle insurance

1- Third Party Insurance: Whether new or old, third-party insurance (TP) insurance is required. The vehicle owner is insuring, then the first party and the insuring company is the second party. At the same time, the third party is the one who suffers losses due to the insurer. If a person or someone’s property is damaged while driving, then it is compensated by third party insurance. Also, on the death of a person in the accident, third party insurance gets compensation. However, in such an accident, the damage caused to the vehicle or driver or other people in the car is not compensated by third party insurance. Keep in mind, the insurance claim is rejected if a minor or a person is driving under intoxication.

2- Personal Accident Insurance: If the driver is injured or dies in an accident while driving, the person gets compensation from personal accident insurance. It can also include all the passengers in the vehicle. In India, it is necessary for the owner / driver of a car with motor insurance and the person sitting together to take a personal accident insurance of minimum 15 lakhs. On the other hand, if someone is driving a minor and gets an accident, then insurance benefits are not available.

3- Own Damage Insurance: This (Own Damage) insurance is to compensate for the damage done to the vehicle. If there is a fire or breakage in the vehicle due to any reason or there is loss in any natural disaster like lightning, earthquake, land slide, rain, flood etc. Apart from this, if the vehicle is damaged in a riot, strike, terrorist attack or due to any other reason, the loss is compensated by On Damage (OD) Insurance. This is done by the insurance company.

4- Add-on cover insurance: There are many things in the car that are not covered in third party, personal accident or on damage insurance. For this, the owner of the vehicle can take add-on cover insurance. They do not necessarily have to be taken. These are optional. There is a separate premium for these. Like other insurance, they also have to be renewed every year. Some of the add-on covers are as follows:

Accessories Cover

If the vehicle has separate accessories like seat cover, music system, TV screen, head light, taillight etc. and if it gets stolen or damaged then it is compensated through the accessories cover.

Engine Protection: Do not overfill the engine of the vehicle due to flood or other reasons.

Roadside Assistance: This cover provides the facility of transporting the vehicle to the service centre and free of essential oil in case of damage to the vehicle or tire puncture on the way. If the vehicle is locked, the duplicate key is also sent by the executive of the insurance company from our home to us.

Zero Depreciation: The price of a vehicle decreases with time. If an accident causes damage to the vehicle and its parts are replaced, new parts are replaced or painted. Then the owner of the vehicle may have to pay up to 50% of the cost of new parts or paint when OD insurance is done. If there is zero depreciation add on cover, then nothing will have to be paid even if new parts are installed. Many companies offer this add on cover only on vehicles up to 5 years old.

Return to invoice: In this add-on cover, the entire cost of the vehicle is found when the vehicle is completely destroyed. The ex-showroom price of a car is Rs 5 lakh and after paying all taxes, the on-road costs Rs 6 lakh. Had bought that car three years ago, whose value is considered to be Rs 3 lakh today. If the same car is completely destroyed in a riot or natural disaster and does not even survive to be corrected or gets swept away in the water, then today the cost of the car will be 3 lakh rupees, ie on OD insurance. If the car owner has taken the return to invoice add on cover, then the full price of the car will be Rs 6 lakh.

How to Calculate Car Insurance Premium?

In India, car insurance premiums are calculated based on various factors that assess the risk associated with insuring your vehicle. While the exact formula for premium calculation may vary among insurance companies, the primary factors that influence car insurance premium calculation in India typically include:

• Insured Declared Value (IDV):The IDV is the maximum amount the insurance company will pay in case of a total loss (e.g., due to theft or a severe accident) of your vehicle. It is calculated based on the current market value of your car. The higher the IDV, the higher your premium will be.
• Type of Coverage:Car insurance in India offers two main types of coverage:
• Third-Party Liability:This covers the financial liability towards third parties in case you cause injury or property damage while driving. Premiums for this type are regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and are based on the engine capacity of your vehicle.
• Comprehensive: This includes third-party liability coverage and coverage for damage to your vehicle. Premiums for comprehensive coverage are influenced by a wider range of factors.
• Cubic Capacity (CC) of the Vehicle:The engine’s cubic capacity, which is measured in cubic centimetres (CC), is a significant factor in premium calculation. Cars with larger engine capacities often have higher premiums due to their potentially higher speed and power.
• Age of the Vehicle:Older vehicles typically have lower premiums because their market value is lower compared to newer cars.
• Geographical Location:The location where you live and primarily use your car affects the premium. Areas with higher traffic density, accident rates, or theft rates may have higher premiums.
• No Claim Bonus (NCB):If you have a history of not making claims, you can earn an NCB discount. This discount accumulates each claim-free year and can substantially reduce your premium.
• Add-On Covers:Additional coverage options or add-ons, such as zero depreciation, engine protection, personal accident cover, and roadside assistance, can increase the premium. The selection of these add-ons also affects the premium.
• Deductible:The deductible (also known as the “excess”) is the amount you agree to pay out of pocket before the insurance coverage kicks in. Choosing a higher deductible can lower your premium but increases your financial responsibility in case of a claim.

To calculate your car insurance premium in India, you can use online premium calculators provided by insurance companies on their websites. These calculators take into account the factors mentioned above and provide you with an estimated premium based on the information you input.

It’s important to compare quotes from multiple insurers to find the best coverage at a competitive price. Additionally, consider consulting with an insurance agent or broker who can provide personalized advice based on your specific circumstances and needs.

Premium Comparison for MARUTI WAGON R [DL1 | 2023 | Petrol | NCB 0%]

Company Name	IDV	Yearly Premium
Oriental Insurance	500000	15838
Kotak General Insurance	500000	16816
United India Insurance	500000	18336
Digit Insurance	500000	23208
National Insurance	476520	21395
Chola MS General Insurance	454860	17843
HDFC Ergo	428810	19033

Quotes taken from: https://www.policybazaar.com on 15.09.2023.

Some rules have changed

Not necessarily Long Comprehensive Insurance: When TP Insurance and OD Insurance are taken together, it is called Comprehensive Insurance. Earlier, any customer was required to take 3 years of TP insurance while purchasing a four-wheeler and 5 years for a two-wheeler. It used to be quite expensive. Also, the customer had to buy OD insurance from the same insurance company from which TP Insurance was purchased. These rules have changed since 1 August 2020. Now, when purchasing a new car, the customer can take TP and OD insurance for 1 year only and after that it can be renewed by any company every year.

PUC required for insurance renewal: If you are going to get your insurance renewal, then a valid application control certificate (PUC) has to be kept with you. According to an IRDA order, if the PUC is not there, the insurance company can refuse to renew the insurance. Not only this, but accident cover can also be rejected if there is no PUC.

How to claim Car Insurance?

Claiming car insurance in India involves a specific process that you should follow in the event of an accident, theft, or damage to your vehicle. Here are the general steps to file a car insurance claim in India:

1. Contact the Police (If Applicable):In case of an accident, especially one involving third parties, contact the police immediately and file a First Information Report (FIR). This is essential for insurance claims.
2. Inform Your Insurance Company:Contact your insurance company as soon as possible after the incident. You can typically find their contact information on your insurance policy documents or their website. Provide them with all the necessary details about the incident, including the date, time, location, and a description of what happened.
3. Document the Incident:Take photographs of the accident scene, any damage to your vehicle, and the other party’s vehicle, if applicable. This visual evidence can be crucial for your claim.
4. Fill Out the Claim Form:Your insurance company will provide you with a claim form to fill out. Complete this form accurately and submit it along with any other required documents.
5. Provide Necessary Documents:Your insurer may ask for various documents to process your claim. These documents may include:

• Copy of your insurance policy
• Copy of your driving license
• FIR (if applicable)
• Vehicle registration certificate (RC)
• Estimate for repairs from an authorized garage
• Bills and receipts for repairs
• Police report (if applicable)
• Any other documents requested by the insurer

6. Claim Survey:After you file a claim, an insurance surveyor may visit the accident site or the garage where your car is being repaired to assess the damage and verify the claim. Cooperate with the surveyor and provide any information or documentation they request.
7. Cashless or Reimbursement Claim:If you are using a network garage, you may have the option of a cashless claim settlement, where the insurance company directly pays the garage for the repairs. If you choose a non-network garage, you’ll need to pay for the repairs initially and then claim reimbursement from your insurer.
8. Follow-Up:Stay in touch with your insurance company for updates on your claim’s progress. Keep records of all communication, including names and contact details of the people you speak with.
9. Settlement:Once the claim is approved and all necessary documentation is verified, your insurer will settle the claim. The settlement amount will depend on factors such as your policy coverage, the extent of damage, and your deductible (if applicable).
10. Claim Closure:After the claim is settled, your insurance company will close the claim, and you can proceed with the necessary repairs to your vehicle.

Remember that it’s essential to report any incident to your insurance company promptly and provide accurate information and documentation. Failure to do so may result in claim delays or denials. Additionally, be aware of your policy’s terms and conditions, including deductibles and coverage limits, to understand what expenses may or may not be covered by your car insurance in India.

In India, motorcycles and scooters, which are two-wheeled vehicles, enjoy widespread popularity as a cost-effective and convenient means of transportation. Nevertheless, operating a two-wheeler entails inherent hazards, such as accidents, theft, and physical harm. In order to safeguard against these perils and adhere to legal mandates, acquiring a two-wheeler insurance policy is of utmost importance. This article delves into the various aspects of 2-wheeler insurance policies in India, including their types, coverage options, benefits, and regulatory requirements.

                                                                                                                                                         Subas Tiwari

Types of bike insurance

Bike insurance in India comprises two main categories: Third Party Liability Insurance and Own Damage Insurance. Third Party Liability Insurance provides coverage when your bike causes damage to another vehicle. On the other hand, Own Damage Insurance, often referred to as OD insurance, comes into play when your own bike sustains damage, including situations involving theft, where the insurance company provides compensation. It’s essential to note that Third Party Liability Insurance, or TP insurance, is mandated by the Motor Vehicle Act and is a legal requirement. Failure to possess this policy may lead to traffic police issuing a traffic violation ticket, commonly known as a challan.

These facilities are available under third party insurance

In the event that your motorcycle results in property damage, damage to another vehicle, injury to individuals, or loss of life in an accident, your insurance policy covers all associated legal expenses. This means that if the matter escalates to a court proceeding and you are required to pay fines, your insurance provider will cover those costs. There is a maximum limit of Rs 7,50,000 specified by the insurance company for this coverage.

15 lakh rupees are available on this condition

Within third-party insurance, there is a segment known as ‘Personal Accident Cover for the owner and driver.’ In the unfortunate event that the motorcycle driver, who possesses a valid registration certificate and a driver’s license, loses their life in an accident while operating the bike, the insurance company provides a compensation of 15 lakh rupees. This compensation is provided in the form of a personal accident cover. There are specific guidelines and procedures for claiming this compensation from the insurance company, which can be readily pursued by the family of the vehicle owner.

Choose Add on Rider Benefits

During Comprehensive Insurance, companies provide many types of add on benefits, in which case you can choose it according to your need. In this, you will get the facility of zero depreciation cover, engine and gearbox protection cover, key and lock replacement cover, helmet cover, 24 × 7 site assistance add-on, etc.

Take insurance for a long time

Opting for an extended insurance policy not only allows you to enjoy some cost savings but also relieves you of the annual renewal hassle. Additionally, it enables you to avail the no-claim bonus over the policy’s duration, even if you have made a claim within that timeframe.

Cover your 2-Wheeler with Comprehensive Insurance

Look into these statistics and realize the importance of insurance

• 2 wheelers constitute more than 80% of all vehicle sales in India
• For every 1000 Indians, more than 100 owns 2 wheelers
• About 13% of these vehicles are stolen every year
• Which accounts for more than 300 such vehicles per day

What does motor vehicles act says regarding insurance?

Chapter XI of the MV Act, 1988 deals with Insurance of Motor Vehicles with Third Party Risk & Clause 146 deals with ‘necessity of for insurance against third party risk’.

Insurance for Third Party Liability

Currently, the Motor Vehicles Act stipulates that all two-wheelers must have insurance coverage for third-party liability. This coverage encompasses the responsibility for injuries and damages inflicted upon others, who are referred to as the third party. In this context, the first party is the vehicle owner, and the second party is the insurance company. This insurance, often known as Limited Liability Insurance, provides protection to the insured party, including the owner and the driver of the two-wheeler or pillion rider, against any third-party liability resulting from an accident. This liability covers damages or losses incurred by the third party or their property, as well as the owner/driver’s disability or loss of life resulting from the accident. However, the premium for third-party liability coverage is determined according to the regulations set forth by the Insurance Regulatory and Development Authority (IRDA).

Insurance for Comprehensive Cover

While MV Act does not provide for covering insurance for other types of risks like, theft, fire, etc., as also damage to the owner’s vehicle, almost all the general (non-life) insurance companies are offering the Comprehensive Cover as an Optional cover, which is not mandatory.

Why cover the vehicle for comprehensive cover?

The comprehensive cover (also called Package Policies) assures the following benefits-

What are covered (inclusions)?

On total or Partial Loss/ Damage to your 2-wheeler

Against natural calamities such as-

• fire
• explosion
• self-ignition or lightening
• earthquake
• flood
• typhoon
• hurricane
• storm
• tempest
• inundation
• cyclone
• hailstorm
• frost
• landslide
• rockslide

Against man-made calamities such as

• Burglary
• Theft
• Riot
• Strike
• Malicious Acts
• Accident by external means
• Terrorist activity
• Any damage in transit by road, rail, inland waterway, lift, elevator or air

What are not covered in your policy (exclusions)?

• Normal wear & tear
• Breakdowns
• Consequential loss
• Loss occurred due to invalid driver license (expired license)
• Loss occurred on account of drunken driving and/or drugs intake
• Loss due to civil war, war, etc.
• Claims arising out of Contractual Liability
• Use of the vehicle otherwise than in accordance with ‘Limitations to Use’ (as when driven by a person other than owner/driver and/or as stated in the ‘driver’s clause’)
• Any accidental loss or damage and/or liability caused/sustained/incurred outside the geographical area (the list is indicative & not exhaustive)

Optional add-on covers

The following additional covers are available on payment of extra premium-

• NIL Depreciation Cover (Nothing payable in case of partial loss; depreciation available to a maximum of 50% on various metal, plastic, fibre or rubber parts in the event of total loss)
• Loss of accessories (electrical/electronic)
• Loss of driving license
• Daily cash allowance (during the period of post-accident repair)
• Engine protection
• Tyres & tubes
• NCB protection
• Anti-theft device

Benefits of 2-Wheeler Insurance Policy

Having a 2-wheeler insurance policy offers several benefits to policyholders:

• Financial Security:Insurance provides financial protection in case of accidents, damage, or theft, reducing the financial burden on the policyholder.
• Legal Compliance:Third-party liability insurance is mandatory by law, ensuring that all two-wheelers on the road are covered against third-party risks.
• Peace of Mind:Comprehensive coverage offers peace of mind, knowing that you are protected in various situations, including accidents, theft, and natural disasters.
• Customization:Policyholders can customize their coverage with add-on riders to meet their specific needs.
• No Claim Bonus (NCB):Insurers offer NCB discounts for claim-free policy years, reducing the premium cost upon renewal.
• Online Renewal and Purchase:Many insurers offer the convenience of purchasing or renewing policies online, simplifying the process for policyholders.

Factors Affecting Premiums

Several factors influence the premium of a 2-wheeler insurance policy:

• Vehicle Model and Make:The make, model, and cubic capacity of the two-wheeler affects the premium. High-end and powerful bikes typically have higher premiums.
• Age of the Bike:Older bikes may have higher premiums due to increased maintenance costs and lower market value.
• Location:The location where the bike is registered and primarily used can impact the premium. Areas with higher instances of accidents or theft may have higher premiums.
• Coverage Type and Add-Ons:Comprehensive policies with additional riders result in higher premiums than basic third-party coverage.
• No Claim Bonus (NCB):A history of claim-free years earns the policyholder NCB discounts, reducing the premium cost.
• Voluntary Deductibles:Opting for a higher voluntary deductible can lower the premium. However, this means the policyholder agrees to bear a higher portion of the repair cost in case of a claim.

Premium Comparison for Honda Activa 5G 125 [DL2 | 2023 | Petrol | NCB 0%]

Company Name	IDV	Yearly Premium
Liberty Insurance	44853	4426
Bajaj Allianz General Insurance	55927	4519
United India Insurance	54595	4038
Digit Insurance	46750	4331
Magma HDI	52696	4751
Chola MS General Insurance	47823	4177
HDFC Ergo	57285	4438
Future Generali	47824	4178
New India	50666	4202

Quotes taken from: https://www.insurancedekho.com

Claim Process

When an insured event occurs, policyholders must follow a specific process to make a claim:

• Inform the Insurer: Notify the insurance company immediately after the incident and follow their instructions for claim registration.
• File an FIR:In case of theft, vandalism, or accidents involving a third party, file a First Information Report (FIR) with the police.
• Document the Incident:Gather all relevant documents, including photographs, repair estimates, and witness statements.
• Submit the Claim:Complete the claim form provided by the insurer and attach all necessary documents.
• Vehicle Inspection:The insurer may arrange for a vehicle inspection to assess the damages.
• Claim Settlement: After verifying the claim, the insurer will either approve and settle it or request additional information if required.

 

 

 

Grievance Redressal Mechanism

Our study revealed that only a few insurance companies have posted a robust GRM system in their website. So, they are summarized below for our readers.

What is your grievance?

• Any partial or total repudiation of claims by the insurance company
• Any dispute in regard to premium paid or payable in terms of the policy
• Any dispute on the legal construction of the policy in so far as such disputes relate to claims
• Delay in settlement of claims
• Non-issue of any insurance document to consumer after receipt of the premium
• Any other grievance (not specified above)

 

• Tier-I-call the company’s toll-free number or customer care number & lodge your grievance. Follow this up by sending e-mail & hard copy to ensure that your complaint is on their desk for their first-look.

 

• Tier-II– If dissatisfied with the reply, escalate to the company’s AVP or company’s customer service desk at apex level.

 

• Tier-III-If the issue still remains unresolved, then approach the Insurance Ombudsman pertaining to your jurisdiction for the redressal of your grievance (access to irdaindia.org & www.gbic.co.in/ombudsman.html).

IRDAI’s Integrated Grievance Management System (IGMS)

The Insurance Regulatory and Development Authority of India (IRDAI) has implemented the Integrated Grievance Management System (IGMS) as an online platform that enables policyholders to officially lodge their complaints against insurance companies. Through IGMS, policyholders have the capability to monitor the progress of their grievances and engage in direct communication with IRDAI.

 

What can the government do?

• The irony is- almost all the insurance companies are doling out similar policies with almost the same inclusions & exclusions- leaving the consumer more confused than ever. He is forced to choose that policy which charges reasonable additional premium for add-on covers to bring out the BEST POLICY for consumer benefit!

• IRDA could mandate to bring out a standardized comprehensive cover covering all major aspects of some vital covers (which are now in the add-on list) such as anti-theft device which would be compulsorily offered by insurance companies while selling a comprehensive policy to the consumer.

 

Conclusion

2-wheeler insurance policies play a critical role in ensuring financial security for two-wheeler owners in India. Whether you opt for mandatory third-party liability coverage or comprehensive insurance with a range of add-ons, having the right insurance policy is essential to protect your bike and yourself from unexpected events.

As a responsible bike owner, it’s essential to understand the types of coverage, factors affecting premiums, and the claim process. Additionally, regularly renewing your policy ensures uninterrupted coverage and may also lead to valuable discounts through the No Claim Bonus (NCB) system.

To sum it up, two-wheeler insurance represents a judicious investment to protect your motorcycle and offer you a sense of security as you navigate the streets of India.

In India, owning a vehicle, whether it’s a car or a two-wheeler, is a common aspiration. However, not everyone has the immediate financial means to purchase a bike outright. Therefore, taking a loan has become the most viable solution. Fortunately, obtaining a bike loan has become increasingly accessible over time. Depending on your credit history, you can secure loans for up to 85 percent of the bike’s cost, and in some cases, even up to 90-95 percent. This facilitates the process of buying a bike, allowing you to repay the loan through affordable EMIs (equated monthly installments). Nevertheless, selecting the most suitable bike loan requires thorough research and careful consideration to meet your specific requirements. 

   Subas Tiwari                      

A two-wheeler loan is a type of loan specifically designed to finance the purchase of a two-wheeler vehicle, such as a motorcycle, scooter, or moped. It is a popular financing option for individuals who want to own a two-wheeler but may not have the immediate funds to purchase one outright.

If you are planning to finance your bike purchase through a bank loan, it is crucial to be aware of the required documents beforehand. Failing to provide the necessary identification and safety-related paperwork can delay the loan approval process, resulting in wasted time. Thus, it is essential to gather all the required documents prior to applying for the loan. Banks typically request different sets of documents from salaried individuals and self-employed individuals to complete the loan approval procedure.

Documents for Two-Wheeler Loans

Every lender requires you to submit certain documents while applying for a loan. Some of the general documents required are given below:

Documents	For Salaried	For Self-employed
Identity Proof	PAN card, voter’s ID, passport, driving license	PAN card, voter’s ID, passport, driving license
Address Proof	Utility bills, passport, etc.	Utility bills, passport, etc.
Income Proof	Salary slips, IT returns, bank statements	Bank statements, IT returns, audited financial statements

Tips for Two-Wheeler Loan

A few loan applicants have had their applications rejected by lenders. This is not a pleasant feeling, and it is not good for your credit score. We have put together a list of tips that can help you apply successfully for a two-wheeler loan. These are as follows:

• Determine the exact loan amount required:You should assess your needs and calculate exactly how much money you need to buy the bike you want. You should never apply for an amount larger than what you need.
• Check your eligibility and compare your options:Once you decide how much money you need to borrow, take a look at all the loan options that you are eligible for. This is important. Never apply for a loan you don’t qualify for. This will automatically get your application rejected. Check your eligibility for a two-wheeler loan and make sure you fulfil all the criteria.
• Check your credit score:Your credit score is one of the most important factors that determine loan approval. Lenders usually reject applications with low credit ratings. So, if your credit history is poor, look at improving it before applying for the loan.
• Get a guarantor or co-applicant:If your credit score is not up to the requirement of the lender, see if you can get a guarantor or co-applicant. Having a guarantor or co-applicant who has good credit can help you get the loan you want.
• Fill your loan application properly:Make sure your application is fully filled with all the details your lender requires. An incomplete application or an application that has wrong information may be rejected.
• Submit all the necessary documents:While submitting your loan application, make sure you submit all the documents the lender requires as well. If you don’t submit the required papers, your application may be rejected.
• Try applying with your existing lender:If you already have a good existing relationship with a bank, try taking the loan from them. This good standing may help you get a loan even if you don’t fulfil all their criteria.

 

When applying for a two-wheeler loan, there are several important factors to keep in mind to ensure a smooth and successful application process. Here are some key considerations:

 

1. Creditworthiness:Your credit score and credit history play a significant role in determining your loan eligibility and interest rate. Before applying, check your credit score and address any issues that may negatively impact your creditworthiness.
2. Loan Amount:Determine the loan amount you need based on the cost of the two-wheeler you intend to purchase. It’s advisable to make a down payment to reduce the loan amount and lower your monthly EMIs.
3. Research and Compare:Shop around and compare loan offers from different lenders to find the most suitable option. Look for competitive interest rates, favorable loan terms, and minimal processing fees or hidden charges.
4. Eligibility Criteria:Understand the eligibility requirements of lenders, including factors like age, income, employment stability, and credit history. Ensure that you meet the criteria before applying to increase your chances of approval.
5. Documentation:Gather all the necessary documents required by the lender, such as identity proof, address proof, income documents, and bank statements. Ensure that your documents are accurate, complete, and up to date.
6. Loan Repayment Capacity:Assess your financial situation and determine your repayment capacity. Calculate the monthly EMIs you can comfortably afford without straining your finances. Choose a loan tenure that allows you to repay the loan within your financial means.
7. Loan Terms and Conditions:Read and understand the terms and conditions of the loan agreement thoroughly. Pay attention to details such as interest rates, processing fees, prepayment charges, late payment penalties, and other associated costs.
8. Additional Charges:Inquire about any additional charges apart from the interest rate and processing fees. These may include documentation charges, insurance charges, and other fees that can increase the overall cost of the loan.
9. Loan Pre-Approval:Some lenders offer pre-approval for two-wheeler loans. This allows you to know your loan eligibility and approximate loan amount before finalizing the purchase. It can simplify the buying process and provide bargaining power with the dealer.
10. Loan Repayment Options:Understand the repayment options available, such as online payment facilities, auto-debit, or check payments. Choose the option that is most convenient for you and ensures timely repayment.

Remember to carefully assess your financial situation and borrow responsibly. Consider your monthly budget and ensure that the loan EMIs fit comfortably within your income. By being well-prepared and informed, you can make an informed decision and have a smoother loan application experience.

Do’s and Don’ts for Two-Wheeler Loan

Do’s	Don’ts
Do your research well before you apply	Don’t apply for multiple loans at the same time
Make sure you are eligible for the loan you are applying for	Don’t apply for a loan simply because you get an attractive welcome gift
Compare interest rates and find the best option	Don’t forget to fill in the application form properly
Compare processing fees and other charges	Don’t sign the loan documents without reading them thoroughly
Evaluate your credit score before you apply	Don’t choose an EMI you cannot afford
Submit all the required documents without fail	Don’t forget to pay your EMIs on time
Read the offer document carefully before signing it	Don’t forget to prepay your loan if you can

Easy financing for superbikes

In India, the price of a luxury bike starts from Rs 5 lacs and it can go up to Rs 35 lacs or even more, depending on the model. Easy availability of finance from banks as well as non-banking finance companies for high-end two wheelers prompts customers to take up bike loans.

While 60-65% of the customers buy bikes on loan, some of them may go for a superbike loan only to avoid questions from the tax angle and not because they cannot afford it. But there are also instances of people with a monthly salary of Rs 30,000 buying these bikes.

For banks, offering loans for high-end bikes is one way of getting high net worth individuals (HNI) as customers. Strangely, many banks offer loans for luxury two-wheelers at rates lower than that for standard two wheelers. However, the tenures may be longer due to the high cost of the bike.

In some cases, the bank might not have an off-the-shelf loan product but could tailor one to suit the buyer’s needs. After all, someone who can afford to buy a bike of more than Rs 5 lacs could be a potential high net worth customer for the lender. The loan amounts are usually 70-80 per cent of the bike’s cost, but can also go up to 90 per cent, if the bank is happy with the customer’s profile.

People who buy high-end two wheelers do it more as a status symbol or for pleasure. But those who take loan for standard two wheelers are people who buy them out of necessity, for their daily commute.

The market for high-end bikes in India is at a nascent stage, although it is growing. Harley-Davidson has tie-ups with some private banks. Triumph is the superbike from UK and is financed by a few other private banks under a tie-up. Bucati is also a luxurious bike which is now sold in India. However, only a small percentage of customers opt for such loans.

While a large section of the demand comes from Delhi and Mumbai, cities like Bangalore, Ahmadabad and Chandigarh, too, have been excellent markets as a rich biking-culture already exists there. There is also an increasing demand from the south of India with Kochi, Chennai and Hyderabad where there is scope for a growing market for such superbikes.

The following table helps you compare the interest rates and processing fees offered by leading banks in India:

S.N.	Bank Name	Interest Rate	Processing Fee
1	ICICI Bank	9.00% p.a. onwards	Up to 4.75% of the loan amount + GST
2	IDFC First Bank	9.99% p.a. onwards	5% of the loan amount
3	Axis Bank	11.00% p.a. onwards	2.5% of the loan amount
4	Bank of India	11.00% p.a. onwards	Contact the bank
5	Punjab National Bank	11.15% p.a. onwards	0.5% of the loan amount subject to Rs.500 to Rs.1,000
6	Canara Bank	11.35% p.a. onwards	Nil
7	Union Bank of India	12.20% p.a. onwards	Contact the bank
8	Bank of Baroda	9.40% p.a. onwards	2% of the loan amount
9	Karnataka Bank	14.23 p.a. onwards	Contact the bank
10	HDFC Bank	14.50% p.a. onwards	2.5% of the loan amount
11	State Bank of India	17.75% to 19.50% p.a.	2.00% of the loan amount + GST (minimum of Rs.1,000)
12	UCO Bank	UCO Float Rate plus 4.80%	1% of the loan amount (minimum of Rs.500)
13	Indian Overseas Bank	12.55% p.a. onwards	Contact the bank
14	Karur Vysya Bank	10.80% p.a. to 17.30% p.a.	1% of the loan amount (minimum of Rs.1,000)
15	Tamilnad Mercantile Bank	14.95% p.a.	1% of the loan amount

Interest rates and processing fees sourced from- https://www.bankbazaar.com as on 06^th July 6, 2023

Over the past few years, there has been a growing awareness among individuals regarding health insurance. Furthermore, following the Covid-19 pandemic, there has been a significant surge in the number of people purchasing health insurance. It is now imperative for everyone to obtain a health insurance policy that covers their entire family. Particularly, if there are elderly parents residing in your household, the importance of obtaining health insurance becomes even more pronounced. This is primarily due to the elevated risk of various ailments associated with old age. By having health insurance, one can avoid incurring substantial hospital expenses during the treatment of such illnesses.

                                                                                                                                                         Subas Tiwari                                                                                                                                                                            Before purchasing a health insurance policy for your elderly parents, it is crucial to familiarize yourself with certain aspects of health insurance. This understanding will enable you to address any issues that may arise when dealing with Senior Citizen Health Insurance.

Why analyze Health Insurance Policy for Senior Citizens?

Senior citizens must get health cover to evade health problems and avoid financial shock. Many aged individuals are worried about the spiraling cost of healthcare and what havoc it could do to their financial security. With medical inflation growing at 15% per year, the cost of procedures like angiography and gall bladder removal has increased tremendously, a report released by KPMG and Assocham noted. Around 38% of the elderly respondents to the survey in India ranked health and financial insecurity among key fears. Low insurance penetration in India means many senior citizens lack the resources to fund treatment.

GROUP INSURANCE-Employer’s Coverage

The need for a health insurance cover is all the more necessary for those who enjoyed the health cover under the ‘Group Insurance Scheme’ floated by the insurance companies under a tie-up with their organization (both government-owned & private sector companies). Till their retirement, the employees/officers were covered under this Scheme, but the cover ceases abruptly immediately after their superannuation. Then the employee gets the ‘senior citizen’ tag & with it comes the financial limitation to live off his pensionary benefits & the sudden ‘disappearance’  of his health cover causing him anxiety.

We have also come across many instances of serving employees not bothering to take any sort of health cover during their service years especially in the un-organized sector & under the self-employed category.

Senior Citizen Health Insurance- a necessity?

Senior citizen health insurance is a necessity especially when you are planning to retire or already retired and carry on life on pension or interest income from savings. A sudden medical emergency can result in a financial crisis other than health setbacks. To avoid this, it is prudent to take a comprehensive senior citizen medi-claim policy.

According to the guidelines by IRDA, every health insurance provider has to mandatorily offer health coverage to individuals’ up to 65 years of age. However, most of the Health insurance Companies are offering health cover to senior citizens aged more than 65 years of age & even up to their platinum years. These guidelines will not only help individuals get coverage at later stages of their life but will also allow them to shift insurers (portability) in case they are not satisfied with their current health insurance provider.

Consumer VOICE readers might be aware that Consumer Voice had carried out a story on the same subject in May 2014. We at the BFSI Desk of CV wanted an updated information as there have been subtle changes brought out by the Health Insurance Companies under the regulatory control of IRDAI. Hence this story in the current issue.

Sum Insured (Health Insurance cover)

Based on the financial capacity/affordability of the insured, we have opted for a Rs.3, 00,000 health insurance policy, as market indices indicate that an average man/woman above 60 years of age would be able to meet his medical treatment (excluding major lifelong diseases) within this amount, if he does not suffer from any serious medical complication at the time of taking a health insurance policy.

Major inclusions in a Senior Citizens Health Insurance Policy

• In-patient Treatment

Covers medical expenses for Hospitalization due to an illness or accident.

• Hospitalization Cover

 Expenses incurred as a patient after admission of more than 24 hrs. The expenses include room charges, doctor fees, minor surgery cost, cost of medicine and drugs, etc.

• Day care

Expenses which arise from use of special equipments or procedures like chemotherapy, dialysis, etc.

• Pre and post of hospitalization

Medical expenses for pre and post of hospitalization; but the number of days it is made available before/after hospitalization will vary across insurers.

• Domiciliary Treatment

The medical expenses incurred by an insured for availing medical treatment at his/her home which would otherwise have required hospitalization (non-admission due to non-availability of beds or that the patient cannot be moved due to his poor medical condition duly certified by the Hospital).

• Organ Donation

These are medical expenses on harvesting the organ from the donor at the time of such organ transplants, but do not cover the cost of the organ itself.

• Co-Payment

This term means that this is a cost-sharing requirement where the policyholder/insured will bear a specified percentage of the admissible claim amount. However, this does not reduce the sum insured. It’s a kind of margin money the patient brings in while getting admitted for cashless treatment. This is often resorted to by health insurance companies as the cost of treatment for senior citizens could be high & this clause ensures that at least a part of the cost is picked up by the insured.

Tax Benefits to Senior Citizens on Health Insurance

A senior citizen health policy covers medical expenses as well as helps you to get tax exemption under section 80D of the Income Tax Act, 1961. You are eligible for an income tax rebate of up to Rs 50,000 if you hold a mediclaim policy for senior citizens for your elderly parents.

An additional tax rebate of Rs 5,000 can be earned on payments made towards preventive health check-ups every financial year. Additionally, you can also get a rebate of up to Rs 1 lakh if the senior citizen undertakes a critical disease treatment.

In case you are an earning senior citizen and are also paying the health insurance premium on behalf of your son or daughter, then you can avail an additional income tax rebate of Rs 25,000. This means that you can avail tax deduction of up to Rs 75,000 in a financial year under section 80D.

Major exclusions in the Policy

• Cosmetic surgery
• Dental Treatment
• Aesthetic treatment
• Plastic Surgery
• Weight Reduction procedures
• AIDS/ Sexually Transmitted Diseases (STD)
• Stem Cell Procedures
• Robotic Surgery

Difficult terminologies explained

• Restoration of Sum Assured

In case of hospitalization, once your claim for a particular disease/ailment is fully exhausted, then you can invoke this basic cover for any other ailment within the same policy period

• Day Care Cover

They are important for the consumer as it reduces his cost or covers additional medical expenses but is not going to alter his options in a major way while the senior citizen chooses a policy.

• Domiciliary treatment

These are the expenses incurred in case patient is being treated at home due to non-availability of beds in hospital or if the patient is not in a medical condition to be moved to a hospital.

What Senior Citizens look for in a Policy to make it attractive to them?

• To make it an attractive buy, the health insurance companies can tinker with the Pre Existing Disease waiting periodto 1 year minimum, as at their age, it is foolish to expect a very robust health profile & most of them would be carrying some ailment or the other on them, which would be as a result of the age factor & the nature’s way of decay.
• Out Patient treatment(OPD) of ailments not categorized as lifelong diseases  and also not requiring hospitalization could be included as one of the basic covers or add-on covers with additional premium.

IMPORTANT HANDLES OF THIS STORY

• Go in for minimum waiting period for PED
• Go for minimum co-payment
• Go for top-up policy within the same insurance policy or a different insurer for lifestyle diseases

The following table shows the various senior citizens health insurance plans that you can buy

Senior Citizens Health Insurance Plans	Entry Age	Sum Insured (Rs)	Pre-existing Disease Coverage	Co-Payment	Pre-Policy Medical Check-up
Aditya Birla Activ Care Plan	55-80 years	Standard: 3 lakh to 10 lakh Classic: 3 lakh to 10 lakh Premier: 5 lakh to 25 lakh	From the 3rd year	10% under the Premier plan 20% under the Standard and Classic plan	Required
Bajaj Allianz Silver Health Plan	46-80 years	Plan A: 50,000 to 5 lakh Plan B: 3 lakh to 10 lakh	From the 2nd year	10% on all claims under Plan B 20% on all treatments in a non-network hospital under Plan A	Required
Care Senior Health Advantage Plan	60 years onwards	5 lakh, 10 lakh	From the 3rd year	50% on all claims up to 70 years 60% on all claims above 70 years	Not required
Cholamandalam Flexi Health Supreme Plan	18-75 years	Basic: 5 lakh to 25 lakh Plus: 5 lakh to 25 lakh Premiere: 30 lakh to 5 crore	From 3rd/4th year (depending on the plan variant)	NA	NA
Digit Health Insurance Plan	18 years onwards	2 lakh to 3 crore	From 2nd/4th year (depending on the plan)	20% if treatment is taken at a non-network hospital	May be required
Future Generali Varishta Bima	60 years onwards	2 lakh to 10 lakh	From the 2nd year	50% on PED claims and 25% on all other claims	Required for sum insured of Rs 7.5 lakh & Rs 10 lakh
IFFCO Tokio Individual Health Protector Plan	18-65 years	50,000 to 20 lakh	From the 4th year	NA	Required for people above 45 years
Kotak Mahindra Health Premier Plan	18-65 years	Standard: 2 lakh Advantage: 3 lakh to 10 lakh Edge: 5 lakh to 20 lakh Elite: 10 lakh to 25 lakh Absolute: 25 lakh to 2 crore 360: 2 lakh to 2 crore Total: 2 lakh to 2 crore	From the 4th/5th year (depending on the plan variant)	10% or 20% for treatment in a higher zone (depending on the zone)	Required for people above 55 years and/or sum insured of Rs 50 lakh & above
Liberty HealthPrime Connect Plan	18-65 years	Essential: 10 lakh to 50 lakh Optimum: 10 lakh to 50 lakh Optimum Plus: 75 lakh, 1 crore	From the 4th/ 5th year (depending on the plan variant)	No co-pay	Required for people above 35 years and/or sum insured of Rs 30 lakh & above
Magma HDI OneHealth Senior Plan	56 years onwards	Gold: 3 lakh to 25 lakh Platinum: 3 lakh to 25 lakh	From the 2nd year	30% on all non-accidental claims	May be required
ManipalCigna Prime Senior Plan	56-75 years	Classic: 3 lakh to 50 lakh Elite: 5 lakh to 50 lakh	From the 3rd year	20%	Not required
National Senior Citizen Mediclaim Policy	50-80 years	Plan A: 1 lakh to 10 lakh Plan B: 1 lakh to 10 lakh	From the 3rd year	10% on PED diabetes/hypertension claims and 25% on both PED claims	Required
New India Senior Citizen Mediclaim Policy	60-80 years	1 lakh, 1.5 lakh	After 1.5 years	10%	Required
Niva Bupa (Formerly known as Max Bupa) Senior First Plan	61-75 years	Gold: 5 lakh, 10 lakh Platinum: 5 lakh to 25 lakh	From the 3rd year	No co-pay	Not required
Oriental HOPE Insurance Plan	60 years onwards	1 lakh to 5 lakh	From the 3rd year	20%	Required
Raheja QuBE Health Insurance Plan	18-65 years	Basic: 1 lakh to 50 lakh Comprehensive: 3 lakh to 50 lakh Super Saver: 1 lakh to 50 lakh Ala Carte: 1 lakh to 50 lakh	From the 5th year	20% for people above 60 years (except under the Super Saver plan)	Required for people above 55 years and/or sum insured of Rs 10 lakh & above
Reliance Health Gain Plan	18-65 years (No age limit for sum insured of Rs 3 lakh)	Plus: 3 lakh, 5 lakh Power: 10 lakh to 20 lakh Prime: 25 lakh to 1 crore	From the 4th year	20% for people above 60 years	May be required
Royal Sundaram Lifeline Health Insurance Plan	18 years onwards	Classic: 2 lakh to 4 lakh Supreme: 5 lakh to 1 crore Elite: 25 lakh to 1.5 crore	From the 3rd/ 4th/ 5th year (depending on the plan variant)	20% on all claims of international treatment for critical illness	NA
SBI Super Health Insurance Plan	18 years onwards	Elite: 3 lakh to 25 lakh Premier: 3 lakh to 10 lakh Platinum: 10 lakh to 50 lakh Platinum Infinite: 50 lakh to 2 crore	From the 3rd year	20% on all OPD professional fee claims 30% on all OPD diagnostic & pharmacy claims 50% on OPD Dental/Vision cover	Required
Star Senior Citizen Red Carpet Health Insurance Plan	60-75 years	1 lakh to 25 lakh	From the 2nd year	30% on all claims	Not required
Tata AIG MediCare Premier Plan	18-65 years	5 lakh to 3 crore	From the 3rd year	NA	Required for people above 55 years and/or sum insured of Rs 50 lakh & above
United India Senior Citizen Health Insurance Plan	61-80 years	1 lakh to 3 lakh	From the 5th year	20% on pre-post hospitalization claims	Required
Universal Sompo Senior Citizen Health Insurance Plan	60-70 years	1 lakh to 5 lakh	From the 3rd year	10% on all hospitalization claims 15% on day care claims 20% on PED claims	Required
Zuno (Formerly Edelweiss) Health Insurance Plan	18-65 years (No age limit for the Platinum plan)	Silver: 1 lakh to 5 lakh Gold: 5 lakh to 20 lakh Platinum: 15 lakh to 1 crore	From the 3rd/ 4th/ 5th year (depending on the plan variant)	20% for people above 60 years	Required for people above 50 years

Product Info sourced from Policybazaar