India is a country that has challenges even in the little things you do everyday. A part of the list is driving. There is almost no city or town in the country that does not have one of the many challenges that make it difficult to drive like poorly maintained roads, traffic, etc. In a country like this, bikes are a popular and intelligent choice for transportation. Indians often buy bikes as a means of daily commute and as a hobby. This is especially true for overcrowded cities where traffic is a huge problem. You need to protect a useful utility such as this in your life. The best way to do this is with bike insurance.
It is not enough to buy a bike insurance policy. You have to understand the concept and the policy you might be purchasing. However, the world of two-wheeler insurance has its own terminology that most of us cannot understand. To understand these terminologies, you have to first find them in your two-wheeler insurance policy document. Doing so can help you avoid the hassle of re-buying, renewing or making an unsuccessful insurance claim. Therefore, here is a quick guide to help you easily understand some of the general terms associated with two-wheeler insurance:
- First, second and third parties
The member who insures his two-wheeler is called a first party, the insurance company that provides the insurance is called a second party, and any person other than the first and second parties who is involved in an accident with the first party is called a third party.
- Third party cover
Third-party liability cover provides compensation for damage to a third party person or property in the event of an accident with an insured two-wheeler. In India, it is mandatory to have at least one third-party liability cover for your two-wheeler. However, a third-party insurance policy does not protect you from the damage caused to your own two-wheeler.
- Comprehensive cover
This type of cover option provides protection from third party liability, as well as damage to the policyholder’s two-wheeler. In addition, it covers the insured person from damages caused by theft, natural or man-made disasters, etc. A comprehensive insurance policy comes with a number of add-on benefits that policyholders can purchase to suit their budget and needs. If you want to check these benefits you can use your bike insurance app.
- Insured Declared Value (IDV)
The maximum amount that the insurance company would pay in the event of theft or irreparable damage to the insured two-wheeler is called IDV. In two-wheeler insurance, IDV is often similar to the current market value of the two-wheeler.
- Zero depreciation cover
This is an additional cover in a two-wheeler insurance policy, which provides room for a higher claim amount without accounting for any depreciation on the value of the parts in your two-wheeler.
- No Claim Bonus (NCB)
No claim bonus is an add-on cover that provides a concession on your bike insurance premium if you do not make claims over a long period of time. You buy this benefit at the time you buy 2-wheeler insurance. This ensures that you would get the same amount of coverage for a lower price as long as you do not make claims.
- Personal accident cover
It is a mandatory cover of the law that protects the insured person from legal and monetary liability in case of injury or death due to accident. The policy also provides compensation in case of partial or complete disability.
Bike insurance add-ons are additional benefits that policyholders can voluntarily purchase with a comprehensive insurance policy by paying additional premiums. Some common add-on benefits for two-wheeler insurance include Roadside assistance cover, Pillion rider cover, Zero Depreciation Cover, etc.
The insurance company has a limited scope of coverage and cover the insured person for all expenses. For example, the insurance company does not cover the costs of accidents caused by speeding or intoxication. There may be several exclusions under the two-wheeler insurance policy that the policyholder should be aware of in order to avoid any confusion during the claim settlement.