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Non Life Insurance - Four reasons why comprehensive motor insurance is important in Covid19 times

31 Aug 2020

The Coronavirus pandemic has wreaked unprecedented havoc in the World today, affecting millions of lives and livelihoods. With physical distancing norms likely to stay, it has changed the way humans interact with each other, leading to a lot of changes in the way we carry on with our daily lives. One such change is the way we will travel. Fear of getting infected in overcrowded public transport systems, particularly in the metro cities is expected to keep many people off the public transportation grid. We are more likely to see people moving to personal modes of transports, wherever feasible, than opting for public transport. And two-wheelers are likely to gain more traction as they are more cost effective and will have lesser impact on finances and savings. Considering the present dynamics, having a comprehensive insurance plan is not negotiable. Here’s why:

Keeping these trends in mind, having a motor insurance is more important than ever. Here’s why.

• Given the severe impact of this pandemic on the lives and livelihood, no one would want an unwanted financial liability. Thus, it is advisable to have a valid comprehensive motor insurance policy, in case things go south. Why comprehensive though?

• While a third party insurance is mandated by the law and covers liability towards third party damage, having a comprehensive policy is advisable. It helps you cover expenses incurred, should anything happen to your vehicle, be it a car or a two-wheeler. It is especially true of the current situations as a lot of people have not been using their personal vehicles regularly, which might lead to breakages and maintenance issues once regular travel resumes.

• Whether you are using your vehicle for personal travel or not during this period, it is still at risk for thefts or natural disasters. Again, having a valid comprehensive motor insurance policy can help you mitigate such risks.

• Another important point which is often overlooked is No Claims Bonus, and timely renewal of your motor insurance policy. With lesser usage during the present times, one tends to be less engaged and chances of slippages are high. Timely renewal of your policy helps in in retaining your No Claims Bonus and your monetary reward in form of discount for good driving behaviour accumulated over the previous policy years. Moreover, you wouldn’t want to be caught on the wrong foot for not renewing your comprehensive insurance on time. This is especially true in case of two-wheelers, where the renewal rates are abysmally low.

To summarise, it is important to have a valid comprehensive motor insurance policy, more so during these unprecedented times. It is good to understand these aspects, be well informed, and choose an insurance plan which is best suited based on your needs and usage. Stay safe..!

Source: Live Mint BACK