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Understand Voluntary Deductibles and Benefits in Two-Wheeler Insurance

Voluntary deductible is the amount you decide to pay at your end for future repairs of his two-wheeler, in the event of an accident. All insurance policies, including home, motor, travel, and general content, have a voluntary deductible clause in their plans. Wh​en you opt for a voluntary deductible, you save yourself a significant part, thereby getting to buy the policy at a lower premium amount. Apart from the voluntary deductible, you also have to part pay for a compulsory deductible, which helps you to a greater extent at the time of a claim.

Let's understand it properly with an example-

If your bike repair costs Rs. 2000, and you had opted for a voluntary deductible worth Rs. 400, then the insurer will pay for the remaining claim amount, up to the limits mentioned in the insurance policy. As the amount matching to voluntary deductibles selected by you increases, you will have to pay a smaller premium. Voluntary deductible is an investment you make towards the repairs of your two-wheeler in advance

You can enjoy the discounts on your two wheeler insurance premium if you have opted for a voluntary deductible while buying the insurance policy. A Voluntary deductible is a minimum amount that you choose to pay from the claim amount. The higher the voluntary deductible amount, the lower is your insurance premium amount.

Here are a few common misunderstandings people have regarding voluntary deductibles -

Unwanted investment -

Many people think that voluntary deductibles are a waste of money. If you are an experienced driver, you would feel that you don't need to opt for a voluntary deductible. However, you don't know what's going to happen on the road. Even if you drive cautiously, things tend to go haywire. Opting voluntary deductibles helps you drop down the premium and gives you an upfront reason to drive more carefully.

Voluntary deductible is different from Co-Pay –

Most policyholders get confused between the concepts of voluntary deductibles and Co-pay. But, there's a huge difference between these two concepts. You will have to pay the voluntary deductible first when you file a claim. After which the insurance company settles the remaining claim amount. However, in the case of co-payment, the final claim amount will be divided between you and the insurer, as per the percentage agreed upon in the two-wheeler insurance policy.

Same as No-Claim Bonus –

Voluntary deductible and No-Claim bonus​ are two different concepts. No-Claim bonus is a reward that you get when you drive/ride safely and do not file any claims in a year. The same amount is discounted from your insurance premium for the following year. The NCB discount keeps on rising with following claim-free years. Moreover, a voluntary deductible is allowed only once, which is at the time of policy purchase.

It is also important that you understand the voluntary deductibles before including it in your bike insurance policy. Consider reading the policy documents carefully and make an informed decision about add-ons, and avoid difficulties during the time of claims.