12 Commonly Used Terms While a Buying Bike Insurance Policy
Understanding commonly used terms will help you to make informed decisions about your bike insurance. Remember, choosing the right coverage ensures a smooth ride, even during unforeseen circumstances like accidents or theft.
Third-Party Liability Insurance
Third-party liability insurance is a type of bike insurance policy that covers damages and injuries caused to third parties by your bike. Third party bike insurance is mandatory under Indian law and safeguards you against legal & financial liabilities arising from accidents causing damages/injuries to third parties in a road accident.
Own Damage Insurance
Own Damage insurance is a type of bike insurance coverage that protects your bike against damages caused by accidents, theft, fire, natural calamities, and malicious acts. It is optional but highly recommended for comprehensive protection.
Bike Insurance Premium
The amount or price you pay to the insurance company in order to keep your coverage active & intact is called the bike insurance premium. Several factors decide your bike insurance premium, such as the bike's engine capacity, make, model & variant, type of policy, year & city of registration, etc.
Bike Insurance Deductible
A bike insurance deductible is the portion of a claim you agree to before the insurance company covers the rest of the claim amount. Remember, opting for a higher deductible can lower your premium but increase your out-of-pocket expenses while settling the claims.
No Claim Bonus (NCB)
No Claim Bonus or NCB in a bike insurance is a reward given to the policyholder for not making any claims during the policy period. A certain percentage of discount is offered on the premium in the form of NCB during the renewal of the own-damage policy, hence encouraging safe riding habits.
Insured Declared Value (IDV)
Insured Declare Value (IDV) is the maximum sum assured guaranteed by the insurance company in case of total loss or theft of your bike. The IDV of your bike is calculated based on the manufacturer's listed price and depreciation applicable.
A policy endorsement refers to the process of modification or addition to your bike insurance policy's information or terms & conditions. In India, for successful bike insurance endorsement, you must provide certain mandatory documents or even written evidence as required by the insurer. You can have different types of bike insurance endorsements, such as changes in cover, No Claim Bonus (NCB), policyholder details, two-wheeler details, financer details, etc.
Policy Inclusions & Exclusions
Bike insurance policy inclusions refer to those insurer perils that will be covered, and the insurer will pay compensation for it in case of any damages/losses.
On the other hand, bike insurance exclusions are specific situations or circumstances not covered by the insurer. As a bike owner, it's crucial to understand bike insurance policy inclusions & exclusions to avoid surprises during claims.
Add-on covers or riders are optional enhancements available with your basic bike insurance policy, providing additional protection for specific risks in exchange for a little extra premium than usual. Some common bike insurance add-ons include Personal Accident (PA) cover, zero depreciation cover, 24x7-roadside assistance cover, engine protection cover, NCB protection cover, etc.
A cashless claim allows you to get your bike repaired at a authorized network garage without paying cash upfront. The insurance company settles the bill directly with the garage, making the process hassle-free.
A reimbursement claim allows you to get your insured bike repaired at your choice of garage, but you have to pay the bills on your own. Later, the insurance company reimburses the bill or repair amount to your registered bank account.
You may also read How to File Bike Insurance Claim?
Renewal is the process of extending your bike insurance policy beyond its expiry date. It is crucial to renew on time to avoid lapses in coverage and keep your coverage intact to avoid many financial & legal consequences.
Understanding bike insurance terms will help you make informed choices regarding your policy coverage. Policybazaar.com offers hassle-free purchase or renewal of bike insurance online, providing affordable premiums and customizable coverage options. You can also compare various bike insurance plans offered by multiple bike insurance companies in India. The objective is to enjoy peace of mind on the road, backed by adequate coverage and round-the-clock support.
Don't delay-secure your ride today!
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^The renewal of insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for a transaction may vary subject to additional data requirements and operational processes.
^The buying of Insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for transaction may vary subject to additional data requirements and operational processes.
#Savings are based on the comparison between highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.
*TP price for less than 75 CC two-wheelers. All savings are provided by insurers as per IRDAI-approved insurance plan. Standard T&C apply.
*Rs 538/- per annum is the price for third party motor insurance for two wheelers of not more than 75cc (non-commercial and non-electric)
#Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.
*₹ 1.5 is the Comprehensive premium for a 2015 TVS XL Super 70cc, MH02(Mumbai) RTO with an IDV of ₹5,895 and NCB at 50%.
*Rs 457/- per annum (1.3/day) is the price for the third-party motor insurance for private electric two-wheelers of not more than 3KW (non-commercial). Premium is payable on an annual basis