Riding a bike is as much fun as it is dangerous. To safeguard yourself and your bike from unforeseen circumstances, having bike insurance becomes highly essential. But, despite the multiple advantages and services offered by the two-wheeler insurance policies, it can be quite a task to buy them, especially online. This is because the insurance policy documents come with their own set of jargon peculiar to the insurance industry, which may be hard to understand for a layman. This could hamper the buyer from making informed decisions due to the information overload and lack of understanding of key terms.
Following are some of the commonly used terms in insurance for a bike that are beneficial to know:
IDV is the current market value of your bike. It is the maximum amount you will receive (insurance sum assured) by the insurance company during claim settlement in case your vehicle gets stolen or damaged beyond repair. Various factors like the make, model, registration date, geographical location, etc., help determine the final IDV amount of the vehicle.
The first party is the owner of the two-wheeler buying the insurance policy, the second party is the insurance company, and the third party represents the people/property involved in an accident/mishappening caused by the first party.
An insurance policy does not cover all expenses for the policyholder, such as the accidents caused due to the conscious irresponsibility of the rider. Over speeding, driving without a license, etc, are some of the instances that prevent the insurance company from bearing your expenses and are termed exclusions.
It is the amount payable to the insurance company by the policyholder for providing the policy for a set duration. It must be paid before the start/end of the policy, depending on the insurer. The amount depends on various factors such as the make, model, age, geography etc., of the bike.
The NCB is a reward given to the rider by the insurance company in lieu of a claim-free policy year. It is a discount offered on the bike insurance premium and is awarded in the form of a reduced premium amount.
These are additional benefits provided by the insurer to the policy seeker that can be purchased voluntarily with an extra premium amount. Some of the popular add-ons are zero depreciation cover, roadside assistance cover, etc.
Every two-wheeler insurance policy comes with a set validity period post which the insurance is up for renewal. After the policy expires, a fixed number of days are granted to the insurance seeker to renew their policy. This time period is known as the grace period.There are more such terms in an insurance policy document but these are some of the top ones that are good to know to make a thorough decision regarding your policy and be well informed at all times. Chola MS’s bike insurance policy ensures top-notch protection for you and your bike at all times while making the claim settlement procedure easy for you.