Daily Allowance Cover in Two Wheeler Insurance

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Daily Allowance Cover in Two Wheeler Insurance

Daily Allowance Cover is a valuable feature in two-wheeler insurance policies that offers added convenience and financial relief. This cover is designed to support policyholders in specific situations, enhancing the overall insurance experience.

By understanding the benefits and applications of Daily Allowance Cover, you can make more informed decisions about your insurance needs. Also, knowing the add-on details will help you chalk out the premium amount better when you use the two-wheeler insurance calculator online. This is because the premium amount will include the costs of any add-ons that you would pick.

Here, we will explore the key aspects and advantages of incorporating Daily Allowance Cover into your two-wheeler insurance, ensuring you get the most out of your policy.

Daily Cash Allowance Meaning - With an Example!

Daily Allowance or Downtime Allowance Cover provides a fixed sum of money when your bike is undergoing repairs for an extended period. The minimum number of days required for this add-on to activate, as well as the payout amount, depends on the insurance company.

Although this bike insurance add-on coverage might seem confusing initially, it is quite straightforward. Let us clarify with an example:

Mr. Sharma met with an accident that caused significant damage to his bike. Fortunately, he sustained only minor injuries and quickly arranged for his insurance company to pick up the damaged vehicle.

The latest update indicated that the bike repairs would take approximately 10 days to complete.

During these 10 days, Mr. Sharma needs an alternative way to commute to work. This is where the Downtime Allowance add-on becomes beneficial. The insurance company will cover the repair costs and pay Mr. Sharma a lump sum amount to cover his travel expenses. The exact amount will depend on the insurer's terms and conditions.

In such situations, the Downtime Allowance Cover proves highly useful for covering daily travel costs, preventing monetary loss due to the unavailability of the bike.

Perks of Adding Daily or Downtime Allowance to Your Two-wheeler Insurance

Expanded Coverage: This add-on broadens the scope of your existing comprehensive policy, providing more extensive protection.

Higher Claim Amount: By including the Downtime Allowance, you can receive a higher total claim amount, covering more than just repair costs.

Financial Assistance: If repairs take longer than expected, this cover provides financial support, ensuring you are not making out-of-pocket expenses for an extended period.

Flexible Travel Options: With the allowance, you can continue to travel by any means you prefer, whether it is public transport, taxis or rental vehicles.

Peace of Mind: Knowing that your travel costs are covered while your bike is being repaired allows you to focus on your daily activities without stress.

How to Claim Two-Wheeler Insurance for Downtime Protection with Tata AIG?

Claiming Daily Cash add-on under your Tata AIG two-wheeler insurance is a straightforward process. However, make sure that you prioritise your safety and well-being first, addressing any injuries before proceeding with the insurance claim.

Next, you can follow these steps to ensure a smooth and efficient claim experience:

Notify the Insurance Company: Contact Tata AIG immediately after the accident, providing as many details as possible about the incident. Prompt notification helps in processing your claim efficiently.

Gather Required Documents: Collect all necessary documents as per the list provided by Tata AIG. These typically include your policy documents, accident report, repair estimates and any medical reports if applicable.

File the Claim Online: Visit Tata AIG’s official website to file your claim. Complete the online claim form and upload the relevant documents. Ensure all information is accurate and complete to avoid delays.

Submit Additional Information: If Tata AIG requests any further details or documentation, provide them promptly to facilitate the claim process.

Await Approval and Settlement: After submitting all required information, wait for Tata AIG to review and approve your claim. Once approved, the claim, including the Downtime Allowance benefit, will be settled.

Exclusions in the Daily Allowance Cover in Bike Policies

Invalid Insurance Policy: Claims will be denied if the vehicle insurance policy is not valid at the time of the incident.

Unpayable Own Damage Claim: If your own damage claim under the vehicle insurance policy is not payable or admitted, the Daily Allowance Cover will not be applicable.

Acts of God, Strikes and Riots: Losses resulting from natural disasters, strikes or riots are not covered under the Daily Allowance Cover.

Other Insurance Policies: If the loss is already covered under another type of insurance policy or cover, the Daily Allowance Benefit will not apply.

Delay in Vehicle Pickup: The benefit does not cover delays in taking delivery of the insured vehicle once repairs are completed.

Mismatch in Time Excess: If the time excess you opt for is different from what is mentioned in the policy, the claim will not be honoured.

Important Considerations When Filing a Claim with Tata AIG

Filing a claim with Tata AIG two-wheeler insurance requires attention to detail and adherence to specific guidelines to ensure your claim is processed smoothly and not rejected.

Here are some key points to keep in mind:

File Promptly: Submit your claim as soon as possible and certainly within the stipulated time frame specified by Tata AIG. Delaying your claim beyond the allowed period can lead to rejection.

Provide Comprehensive Information: Gather and present as much detailed information as possible about the incident. This includes accident reports, photos, witness statements and any other relevant documentation.

Accuracy is Crucial: Ensure all information provided to Tata AIG is accurate and truthful. Submitting incorrect or false information can lead to immediate claim denial.

Follow the Prescribed Process: Adhere strictly to the claim process outlined by Tata AIG. Familiarise yourself with their procedures and requirements to avoid any procedural errors that could jeopardise your claim.

Maintain Honesty: Be honest and transparent throughout the claim process. Any attempt to mislead or withhold information can result in your claim being rejected and may also affect future claims.

Conclusion

Adding a Daily Allowance Cover in two-wheeler insurance policy is a smart move that offers significant benefits. It extends your coverage, provides financial support during repairs and ensures you can continue your daily commute without added stress.

With the right knowledge and coverage, you can enjoy greater peace of mind and financial security, knowing that you are well protected against the inconveniences of unexpected bike repairs.

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

Related Articles

Can I avail myself of the benefits of the Daily Cash Allowance in bike insurance coverage if my insured vehicle is stolen and later recovered?

Can I avail myself of the benefits of the Daily Cash Allowance in bike insurance coverage if my insured vehicle is stolen and later recovered?

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Yes, you can avail yourself of the benefits under the Daily Allowance Cover in the event your vehicle is stolen and subsequently recovered. The benefits will be provided until the date of recovery, up to the maximum number of days specified in your policy.

What are the most important bike insurance add-ons?

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Several add-ons can enhance your bike insurance policy. The most important ones include:

Zero Depreciation Cover: This one ensures full claim settlement without factoring in depreciation on parts.

Roadside Assistance: This one provides help in case of breakdowns or emergencies while on the road.

Pillion Rider Cover: This one offers additional coverage for the pillion rider, ensuring their safety.

**Downtime or Daily Allowance:**This one covers travel expenses while your bike is being repaired. —-----------------------------------------------------------------------------------

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