From small towns to big metros, you will find two-wheelers of all kinds on Indian roads. When buying a two-wheeler, two-wheeler insurance is a must. But insurance policies are filled with terms that may seem incomprehensible to most. So here is a rundown of 12 terms you will find in your two-wheeler insurance policy:
This is the fee paid by the insured individual to the insurer for providing coverage over a fixed term.
2. First and second-party:
The insured individual and their two-wheeler is the first party. The insurer offering the coverage is the second party.
The third party is the injured person and/or their property that was damaged in an accident caused by the first party.
4. Third-party liability cover:
This cover compensates the third party for any injury sustained or damage to their property caused by the first party. This is a mandatory type of two-wheeler insurance.
5. Comprehensive cover:
This cover offers third-party liability cover, plus personal accident cover. It covers the insured individual against damages caused to the vehicle by way of man-made disasters, natural calamities, and theft.
6. Personal accident cover:
This cover offers protection to the insured against financial and legal liability in the event of bodily injuries or death due to accidents. If the insured person suffers from partial or full disability due to an accident, this cover will provide compensation for the same.
7. Insured Declared Value (IDV):
This is the current market value of the two-wheeler. It also factors in the depreciation of the vehicle. The IDV of a vehicle is the maximum amount payable to the insured individual in case of irreparable damages or theft of the two-wheeler.
8. No Claim Bonus (NCB):
This is a discount on your premiums that you get if you do not make a claim during a policy year.
These are optional benefits that provide enhanced coverage by paying an extra premium amount. If you compare insurance online, you will find that every type of insurance has its set of Add-ons. Two-wheeler insurance add-ons include pillion ride cover, roadside assistance cover, and more.
10. Zero depreciation cover:
This is a popular Add-on that you can select. The cover provides you with a higher claim amount as it does away with the depreciation value on parts replaced in a two-wheeler.
11. Grace period:
Two-wheeler insurance comes with a coverage period. At the end of that period, insurers allow the policyholder to renew their insurance without requiring the bike to undergo inspection. This is the grace period and usually lasts for 30 days.
These are the expenses that insurance companies do not cover. When you compare insurance online it becomes apparent that most exclusions are universal among insurers. Nevertheless, you must always read through the policy’s terms and conditions so that you are fully aware of the exclusions.
Now that you know the above terms, you can easily buy two wheeler insurance online. Be sure to read through each policy’s fine print thoroughly. And then select one that best fits your needs and your wallet.