Team AckoJul 22, 2021
One of the main advantages of buying a comprehensive bike insurance policy is that one can customise the coverage with the help of add-ons. Some add-ons help you get better claims payout while others provide useful services. Some add-ons also provide direct cash if you face a delay in services. One of such useful add-ons is the Downtime Allowance Add-on in bike insurance. This article sheds light on how useful the add-on can be for the policyholder.
Downtime Allowance Cover offers a fixed sum of money when your bike is under repairs for a longer duration of time. The minimum number of days for this add-on to activate depends upon the insurance company, so does the amount to be paid. The coverage might seem confusing at first but it is fairly easy to understand. Let’s clear any confusion with an example.
Consider Mr A met with an accident and his bike suffered major damage. Mr. A was quick to jump off the bike and sustained minimum injuries to himself.
He called the insurance company and arranged for a pickup of the damaged vehicle.
As per the latest update, the bike repairs will take around 10 days to complete.
Now the question is, how will Mr A commute to work for 10 days when his bike is under repairs? This is where Downtime Allowance Add-on comes into the picture. The insurance company will not only bear the liable cost of bike repairs but will also pay a lump sum amount to Mr A for travelling to work. Here the amount to be paid will depend upon the terms and conditions of the insurer.
The Downtime Allowance cover is highly useful in such a situation to claim the daily travel cost for someone who would suffer a monetary loss without their bike.
One can claim for Downtime Protection in bike insurance by getting in touch with the insurance company as soon as possible. It is always advised to first take care of any injuries and then call the insurance company for claims. Here are the steps to raise a claim against the Add-on:
Step 1: Intimate the insurance company with as many details about the accident as possible
Step 2: Arrange the documents as per the list provided by the insurance company.
Step 3: File the claim on the insurer’s website and upload the documents related to the claim.
Step 4: Send any additional information as and when requested by the insurance company.
Step 5: Wait for approval and claim settlement.
A part of the claim amount will have the monetary benefit related to the Downtime Allowance add-on.
There are two ways in which one can raise a claim against the bike insurance policy. One is online and the other is the traditional offline way. Here are the details:
Purchasing the two-wheeler Downtime Allowance Add-on is easier when done online. You can buy the Downtime Allowance Add-on when you shop for a two-wheeler package policy. An option to buy an add-on is only available with a comprehensive bike insurance policy. Enter the details related to your bike and proceed to select required add-ons from the list of available ones.
Consider selecting add-ons like Roadside assistance and Zero Depreciation along with the Downtime Allowance Add-on. If inspection is not requested by the insurance company, you should receive the insurance policy at the registered email address within minutes of making the purchase.
Note: Thoroughly go through the terms and conditions of the bike insurance policy before making the payment.
Buying the Downtime Allowance Add-on with your bike insurance policy offline would take more time as compared to buying online insurance. You would first need to contact an insurance agent or the insurance company and get the application form. Select the right coverage and add-ons that you need for your bike.
Submit the form and any other documents as required, and wait for the insurer’s approval. You should receive the physical copy of the insurance policy via post within 5 to 6 working days.
Note: Your bike might stay uninsured during this period if you begin the process after the expiry date of the last policy.
Buying the Bike Downtime Allowance Add-on with a comprehensive two-wheeler insurance policy provides the following benefits:
Increases the scope of a comprehensive two-wheeler insurance policy.
Increases the claim amount.
Provides financial help if repairs take longer than anticipated.
One can continue to travel by any means of transport they like.
Reduces out-of-pocket expenses when the bike is getting repaired.
Gives peace of mind about travelling costs when the bike is under repairs.
Under the Downtime Allowance add-on cover, an insurance company will compensate for the money spent on daily commute when the bike is under repairs. The compensation can be in the form of lump sum amount during claim settlement, cash coupons of equal value to be used for booking transport, or direct alternate transport of similar type.
A claim for overall damages should be approved to get the benefit under the Downtime Allowance add-on. It is not allowed to file a separate claim under the add-on.
The first day for calculating the amount to be paid under the add-on will be when a written notice was sent to the insurance company about the claim. Or when the bike was submitted for repairs at a network garage.
The claim amount of Downtime Allowance add-on will be paid only if the bike takes more than the days stipulated in the insurance policy.
Under the theft or total loss claim, the amount payable under Downtime allowance will be 10 days.
A claim cannot be made under Downtime Allowance add-on if the overall claim of damages is rejected.
The claim amount under this add-on will not be paid if the repairs are done before the minimum number of days required to activate the add-on.
Also, read: Two Wheeler Insurance – Add On Covers
There are many things that can get your claim rejected. Here is a list of some of such things that will help you avoid a claim rejection:
Try to file the claim as early as possible and within the allowed number of days to avoid rejection.
Be ready with as much information as possible.
Don’t forward incorrect or false information to the insurance company.
Stick to the claim process laid down by your bike insurance company.
Here are some commonly asked questions about the topic:
Why are add-ons useful in bike insurance?
Add-ons increase the limit of coverage of a basic comprehensive bike insurance policy. They help you get access to more services or financial aid in the times of need. When relevant add-ons are bought, they can prove to be very useful with bike insurance.
Which are the most important bike insurance add-ons?
Add-ons like Zero depreciation, Roadside assistance, Pillion rider cover, and Downtime allowance add-ons are the most important bike insurance add-ons.
Why does an insurance company reject a claim?
There could be many reasons as to why an insurance company would reject a claim. Some of them could be not filling the claim within the stipulated time, fraudulent claims, misinformation, partially false claims, raising a claim against an exclusion of the policy, etc.
Can I make a claim against downtime allowance if my bike caught fire and was damaged beyond repair?
Yes, the insurance company will be a lump sum amount under the Downtime allowance add-on in case the bike caught fire and was damaged beyond repair.
Is it a prerequisite of the Downtime Allowance add-on to get the bike repaired at a network garage?
Yes, the policyholder needs to get the bike repaired at a network garage to make a claim against Downtime Allowance add-on.
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