Key Terms Used In Bike Insurance Policy

The insurance industry has its own set of jargon that must be understood in order to fully appreciate the policy document. Knowing the most key terminology also means better equipment when purchasing, renewing or filing a claim. Let's take a look at some of the most regularly used words in two-wheeler insurance.

Common Two-Wheeler Insurance Terms

Two-wheeler insurance has its own set of jargon, which must be understood in order to interpret a policy contract. Also, knowing the keywords will save you time when purchasing, renewing, or filing a claim for insurance. As a result, here's a simple primer to help you grasp some of the most commonly used phrases in two-wheeler insurance: When it comes to purchasing or renewing a two-wheeler insurance policy online, understanding the above-mentioned phrases will ensure that you make an informed selection.

• Types of Parties: First, Second, and Third

The insured member and their two-wheeler are referred to as the third party; the insurance company providing coverage is referred to as the second party, and the person(s) involved in the collision with the first party is referred to as the third party.

• Coverage from a Third Party

In the event of an accident involving the covered two-wheeler, third-party liability insurance pays for damages to a third-party individual or property. In India, you must have at least third-party liability insurance on your two-wheeler. A third-party insurance coverage, on the other hand, does not cover damage to your own two-wheeler.

• Full Coverage

This type of coverage protects the policyholder's two-wheeler while also covering third-party liabilities. It also protects the insured from theft, natural or man-made disasters, and other perils. A comprehensive insurance policy includes a number of optional features that policyholders can choose from depending on their budget and needs.

• Declared Value (Insured) (IDV)

The highest amount an insurance company will payout in the event of theft or irreparable damage to the insured two-wheeler is known as the insured declared value. The current market value of a two-wheeler is represented by the IDV in two-wheeler insurance.

• Coverage for Zero Depreciation

It is an extra cover in a two-wheeler insurance policy that allows for a greater claim amount by removing the depreciation deduction from the value of items replaced in a two-wheeler.

• Exclusion

An insurance provider does not pay all of the expenditures incurred by the insured. For example, the insurance company does not cover expenditures incurred as a result of accidents caused by speeding or driving while inebriated. A policyholder must be informed of any exclusions under a two-wheeler insurance policy in order to avoid any discrepancies during claim settlement.

• Add-Ons

Bike insurance add-ons are optional features that a policyholder may add to a comprehensive insurance policy for a fee. Emergency help, pillion rider cover, roadside assistance cover, zero depreciation cover, and other typical add-on features in two-wheeler insurance are just a few examples.

• Accident Insurance For Individuals

It is a legal requirement that protects the insured from legal and monetary liability in the event of injury or death as a result of an accident. Even if you have a partial or whole handicap, the coverage will compensate you.

Take Away

Riding may be as much fun as it is risky, thus two-wheeler insurance is a must. Aside from protecting your two-wheeler financially, the correct motorcycle insurance will also safeguard you and any passengers. Before renewing your bike insurance online or purchasing a new policy, make sure you understand the conditions so you can get the most out of it and prevent unpleasant surprises in the event of an emergency.

Also read - What Is Excluded Under A Two Wheeler Insurance Policy

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.