Important terms about two-wheeler insurance you should know

You must buy two-wheeler insurance owing to the government rules and for your safety. Now, the world of insurance has specific terms that you should understand. It enables you to choose the best policy and negotiate the claim.

The jargons associated with bike insurance can get confusing at first. But as you try understanding them, it gets simplified. It is an essential step in your insurance buying process. Here are some of the standard terms used:

Insurance premium: It is the fees paid periodically to the insurer for transferring the risk. You get the insurance policy papers with the initial premium payment. The frequency of the premium ranges between monthly, quarterly, annually. It depends on different factors like your motorcycle value, makes age, etc. It also depends on the type and additional covers you include in your policy.

Add-ons and exclusions: If you want additional coverage for your motorcycle than what your policy includes, you use add-ons. You can only get them if you select comprehensive insurance. It includes depreciation covers, consumables, gap value, roadside assistance, etc. You can check this easily while buying two-wheeler insurance online.

Insured declared value (IDV): It is the maximum amount payable by the insurer if there is theft or irreparable damage to your bike. IDV is an important term to know for getting the ideal claim for unpredictable scenarios. It allows you to make the most of your two-wheeler value. This is because it gets calculated minus the depreciation, which gives you the market value. You can claim and get your motorcycle replaced with IDV.

Cover: This refers to the maximum liability of the insurer. They pay all the expenses and damages included in your policy when you file the claim. It differs for both types of the two-wheeler insurance policy. The third-party is what covers the injuries affecting the third party and asset. This is mandatory, according to the law. If you can afford them, it is advisable to go for a comprehensive policy as their coverages offer maximum safety.

Third-party liability: There are three parties involved in such bike insurance. They are the insured, insurer, and the person involved in the accident. Third-party liability is crucial and mandatory. The damage caused to the third party in the accident, like death or disability, gets covered. For a new vehicle, you might need to take this policy for at least five years.

Personal accident cover: It is an extension that you could opt for regardless of the policy type. It covers any disability or death implications on the owner. Hence, you get safety for your life whenever an accident occurs, along with third-party protection. The maximum coverage limit is up to Rs. 15 lakh. However, it differs based on the percentage of insurer compensation.

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