What to contemplate earlier than shopping for insurance coverage for e-two-wheelers?

What ought to I take into account for buying an electrical two-wheeler insurance coverage coverage?

—Name withheld on request

Both the method and ticking the packing containers for e-two-wheeler insurance coverage are the identical as shopping for petrol two-wheelers. If you purchase a car for the primary time, it’s good to make sure the third-party legal responsibility insurance coverage is bought for a interval of 5 years. Besides, you need to take into account shopping for the next add-ons: zero depreciation cowl, and return to bill cowl. Some insurers supply protection for battery safety, which covers claims for water ingress to battery. You ought to go for this add-on, if provided. Some insurers are extra aggressive in providing insurance coverage for electrical autos. So, you need to make an intensive comparability earlier than shortlisting an insurer.

I’ve a medical insurance coverage from HDFC Ergo. I used to be identified with osteonecrosis of the precise hip final yr for which I had a core decompression surgical procedure. I need to know if this data should be disclosed at time of renewal. If sure, then how ought to I do it and what modifications it might have in my renewal premium?

—Kumar Saurabh

In the given case, since you’re already insured, no additional disclosures are required to the insurer. If you had filed a declare then the insurer may have the medical particulars, however even in case you didn’t file a declare, you aren’t required to tell the insurer.

Note, any change in medical situation of the policyholder doesn’t affect renewal premiums. By legislation, insurers can’t apply a claim-based loading on renewal premium for a person policyholder. If premiums are modified then they need to be modified for all folks in an age group and can’t isolate you alone. Premium for a similar age could range however solely whether it is proposed and accepted by a policyholder earlier than issuing an insurance coverage. After the preliminary coverage issuance, insurer will not be allowed to use extra loading and should cost a uniform fee for a bunch. However, in case you miss a renewal, the insurer can change the phrases of the coverage , together with premiums, for you. So, in your case, well timed renewal is important.

What is ‘premium smoothing’ in insurance coverage parlance, and the way does it assist?

—Name withheld on request

Premium calculation for any danger considers a number of elements like previous losses, out of the pocket bills, and so on. Insurers need regular premium with few modifications, and amortize the fee affect of all elements over a few years. It helps keep away from a steep rise in premiums for policyholders, making it reasonably priced. The value affect is handed to policyholders in a gradual manner.

Abhishek Bondia is principal officer and managing director, SecureNow.in.

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Updated: 08 Jun 2023, 10:38 PM IST