Insurance for food delivery in the Philippines

by Ronel Forbes

September 21, 2022

We can now satisfy our culinary demands from the comfort of our own homes thanks to online food delivery. Although we place our orders online, it is the food delivery men and women that deliver our meals.

Food delivery does, unfortunately, come with some concerns. You may be aware of these concerns if you work in the food delivery industry.

As a result, financial insurance against unplanned events is critical. We’ll talk about two-wheeler insurance for food delivery bikes in the Philippines to address this.

What does food delivery motorcycle insurance imply?

As you may know, insurance refers to financial protection offered by an insurer in exchange for a certain premium. Damage, loss, disease, or death could all be covered.

However, it is limited to damage or loss to a two-wheeler in the context of two-wheeler insurance. Because food delivery motorcycles are so widely utilized, the potential of accidental damage is significant.

That is why food delivery bikes require and are covered by two-wheeler insurance.

Is food delivery scooter insurance necessary?

Online food delivery was approved as an essential service following the government-mandated COVID-19 lockdown. As a result, meal delivery orders are likely to have grown since then.

This surge in demand may have prompted businesses to hire more workers for the job, raising the risk of traffic accidents.

Aside from that, there is a lot of competition in the internet meal delivery market because there are so many participants presently. As a result, in order to stand out from the competition, you may be required to achieve tight deadlines as a delivery partner.

You would also have to meet a daily delivery objective.

All of these things could lead to you taking unnecessary risks when riding. And this could greatly enhance your chances of being involved in an accident.

It can be emotionally and financially exhausting if you are involved in an accident. That is why it is critical to purchase vehicle insurance ahead of time.

In the Philippines, it is also a legal obligation.

Food delivery motorcycles can be insured in a variety of ways.

In the Philippines, insurers typically offer just two types of two-wheeler insurance plans for food delivery motorcycles. Third-party bike insurance and comprehensive bike insurance are the two options. Let us go over each one briefly.

Third-party Insurance Plan: This is the most basic type of bike insurance available for food delivery bikes. In addition, it is required by law. It covers third-party injuries, death, and property damage. Damages to the insured food delivery bike, however, are not covered.
Comprehensive Insurance Plan: This plan includes both Own Damage (OD) coverage and Third-Party Bike Insurance Plan coverages. Financial compensation is offered under the OD insurance for unintentional damages as well as damages caused by natural and man-made disasters.
Personal Accident (PA) insurance is not the same as bike insurance. It is, nevertheless, required by law. It provides monetary compensation in the sad event of the insured’s accidental incapacity or death. It is not, however, covered by food delivery motorcycle insurance. As a result, it may be necessary to purchase them separately.

The advantages of purchasing motorcycle insurance for delivery motors

As previously said, riding food delivery bikes on Indian roadways is dangerous. Because driving is such an important component of the food delivery work, the risks are substantial.

If you are unfortunate enough to be involved in an accident, you will be faced with not just the stress of the accident, but also a significant financial load.

To avoid a situation like this, it’s always a good idea to obtain motorcycle insurance for your food delivery bike ahead of time.

As a result, you won’t be financially stressed if you sustain personal injuries or third-party obligations as a result of an accident.

This will allow you to concentrate on your business rather than worrying about the financial ramifications of an accident.

Consequences of not having delivery motorcycle insurance

Food delivery bike insurance is required to ride food delivery bikes on Indian roadways, as previously stated. If you are caught without valid insurance, you could face harsh legal consequences.

You could lose your license, pay substantial penalties, or serve time in prison as a result of your actions.

Apart from the legal consequences, insurance is required to deal with the financial consequences of accidents. If you don’t have insurance, you’ll be responsible for any accident-related costs out of pocket. And you could lose a lot of your hard-earned money as a result.

Tips for purchasing two-wheeler insurance for food delivery motorcycles

Although some app-based businesses may assist you in obtaining bike insurance for food delivery, this is not always the case. So, if you have to pick one for yourself, use the guidelines below to help you.

Check the cost-effectiveness: Buying bike insurance online is frequently less expensive and offers more options than buying it in person. As a result, you can evaluate plans and select the best one. MGS Insurance Agency provides plans that are both cost-effective and comprehensive. Consider purchasing MGS Motorcar insurance.
Make sure your coverage is adequate: Select a plan that provides the coverage you require. Make sure the quantity insured is sufficient to cover any conceivable accident scenarios. It’s worth noting that choosing a large sum covered can raise the price.
Check the coverage areas: Most bike insurers only provide coverage within a specific geographical area. Outside of these locations, accidental damages will not be covered. Before purchasing bike insurance coverage, double-check the covered areas.

To sum up

Food delivery specialists are at a greater risk of accidents because they are continually on the move. Expenses may escalate in the event of a tragic disaster. Having to pay for these expenses out of your own money might be a nightmare.

To avoid such situations, it is prudent to purchase two-wheeler insurance in advance. That way, you can concentrate on completing your job successfully rather than worrying about unexpected costs.