What should dairy farmers know about insurance requirements for two-wheeler loans?

Dairy farmers considering a two-wheeler loan should keep the following points in mind regarding insurance:

• Insurance Requirement: Most financial institutions typically require insurance for the vehicle before approving a loan. This ensures the vehicle is protected in case of theft, damage, or accidents.
• Insurance Types and Coverage: Most institutions require Comprehensive Insurance (covering vehicle damage, theft, third-party liabilities, and protection against natural and man-made disasters) or Third-Party Insurance (covering damages or injuries caused to third parties).
• Endorsement on Insurance Policy: Financial institutions may require their name added to the insurance policy to secure the loan, ensuring their interest in the vehicle until the loan is repaid.
• Documentation: To streamline the approval process, dairy farmers must ensure they have all necessary documents, including the insurance policy, when applying for the loan.

Note: Insurance requirements may vary across institutions, so checking specific conditions is recommended before applying.