Common Bike Insurance Terms:

There are many terms used in insurance and one must have a good understanding of the policy document to make better decisions at the time of buying/renewal or claims. Let's take a look at the common bike insurance terms you should know:

First Party, Second Party, and Third Party: Well, the first party is the person buying the policy (the two-wheeler owner), the second party is the insurance company and the third party represents the property/person involved in the accident caused by the first party.

Premium: It is the amount paid by the first party to the second party for providing the insurance for a the said policy duration . The premium amount depends on multiple factors like the value of the vehicle (insured declared value) , make &model, age, area of registration, etc. of the vehicle. Premium has to be paid on or before the start of policy duration.

Cover: It is the maximum monetary liability of the insurance company in case the policyholder files for a claim.

Insured Declared Value (IDV): In case of theft, the insurer has to pay the insured declared value of the bike less applicable excess/deductible as per policy terms & conditions.. the maximum sum payable by the insurance company to the insured member in case of a total loss/theft or any other own damage claim of motorcycle is the Insured Declared Value (IDV).

No Claim Bonus (NCB): No Claim Bonus is a reward given to the vehicle owner for not making any calim during the entire policy duration. This is offered in the form of discount on own damage renewal premium.

Exclusion and Add-ons: Not all claims are accepted as there are some exclusions in the policy. For instance, if the accident happened because of over-speeding or in a state of inebriation, the insurer is not liable to pay for the damages. The policyholder must be well-aware of the several exclusions in the document, often mentioned in the fine print. Then there are additional benefits like add-ons such as zero depreciation cover, emergency assistance cover, etc. that the policyholder can get by paying additional premium.