Basic Terminologies To Know About Bike Insurance Before Buying One

Nearly every city and town in the nation has one of the several issues that make commuting challenging. This is probably why many Indians choose to purchase bikes for their daily use. Such a valuable utility in your life needs to be safeguarded. Bike insurance is the best method to go about doing this.

Purchasing a bike insurance policy is insufficient. You should understand the idea and the possible policy you are buying. The majority of us are unable to understand the terminology used in two-wheeler insurance. By understanding them, you can save yourself the bother of having to repurchase, renew, or file a failed insurance claim. Here is a brief glossary to make it simple for you to comprehend some of the phrases used in two-wheeler insurance:

Initial, subsequent, and third parties

The other person involved in a mishap, along with the first party, is referred to as a third party. The member who insures his two-wheeler is referred to as a first party. The insurance provider is referred to as a second party.

Third-party insurance

In case of an unfortunate incident, insured two-wheeler, third-party liability coverage offers reimbursement for harm to a third party’s person or property. For your two-wheeler, you must get at least one third-party liability policy in India. A third-party insurance coverage, however, does not cover damage to your own two-wheeler.

Complete protection

Both damages to the policyholder’s two-wheeler and third-party liabilities are covered by this kind of cover choice. Additionally, it protects the insured individual from losses brought on by theft, calamities caused by nature or human activity, etc. A comprehensive insurance plan includes a number of add-on features that policyholders can select based on their financial situation and personal requirements. It may be something you are looking at for your new bike insurance.

Declared Insurance Value (IDV)

IDV is the maximum sum that the insurance provider will cover in the event that the covered two-wheeler is stolen or suffers irreparable damage. IDV is frequently comparable to the two-current wheeler’s market value in two-wheeler insurance.

Depreciation-free coverage

This supplementary protection in your two-wheeler insurance policy allows for a larger claim amount without taking into account any depreciation on the parts’ value.

Unclaimed Bonus (NCB)

No claim bonus is an add-on insurance policy that offers a concession on your bike insurance cost if you go a long time without filing a claim. When you purchase 2-wheeler insurance, you also purchase this advantage. As long as you do not file any claims, this guarantees that you will have the same level of coverage at a lower price. *All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply.

Cover for personal accidents

It is a requirement of the law to have insurance that shields the insured individual from financial and legal obligation in the event of accident-related damage or death. If partial or total incapacity occurs, the policy also offers compensation and is available on Bajaj Allianz bike insurance.

Add-ons

Bike insurance add-ons are optional extras that policyholders can choose to add to a comprehensive insurance policy by paying supplemental charges. Roadside assistance coverage, pillion rider coverage, zero depreciation cover, etc., are some popular add-on features for two-wheeler insurance.

Exclusions

The insurance provider has a narrow scope of coverage and pays for all costs incurred by the insured. For instance, the insurance provider does not pay for accidents brought on by speeding or drunk driving. The policyholder should be informed of any exclusions under the two-wheeler insurance coverage to prevent any misunderstandings throughout the claim settlement process.

After reading this article, we hope you can take a more informed call when you are purchasing your new bike insurance.

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Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.