Common Terms To Understand In Bike Insurance

Bike insurance contains a lot of terms and jargons that may seem confusing from the outside. However, they are in fact quite simple and easy to understand. Let’s read all about some common terms in bike insurance that are important to understand. Make sure to research thoroughly and understand your policy well before you make the decision to purchase it.

Common Terms To Understand In Bike Insurance

The following are some common terms to understand in bike insurance:

1. Coverage

Coverage simply refers to the extent of scenarios in which you would have financial protection from your insurance policy. It is of three types:

• Third Party Coverage: Third-Party bike insurance coverage will offer coverage for any damage sustained by a third party involved in an accident or collision with your bike. It is the minimum coverage that is mandated by law.
• Standalone Own Damage Cover: This will cover any damage to your own vehicle as well as cover you in case of accidents or mishaps that do not involve a third party.
• Comprehensive Cover: Comprehensive cover is the most robust coverage available and is simply a combination of the above two. It gives you the highest extent of coverage and protects you in the maximum number of scenarios.

1. Add Ons

Bike insurance add-on covers are additional coverages that you can avail of in order to strengthen your insurance coverage and tailor it to your needs. They enable you to get coverage in a variety of scenarios that would not be ordinarily covered by your standard comprehensive insurance. For example, if you live in a flood-prone area, you may opt for engine protection coverage.

Also, Read: Zero Depreciation Two-Wheeler Insurance

2. IDV

IDV or Insured Declared Value refers to the total amount for which your bike is insured. It reflects the current market value of your two-wheeler and thus depreciates over time. If your bike is stolen, the amount that you would be covered for by the insurance company is the IDV.

3. NCB

NCB refers to No Claim Bonus which is a discount available at the time of renewal of your insurance if no claims have been made during the policy tenure. It is cumulative in nature and increases over time.

Further Reading: No Claim Bonus (NCB) in Two Wheeler Insurance

Conclusion

The above are some of the common terms in bike insurance that are important for you to be very familiar with before you make the decision to purchase insurance for your two wheeler. Make sure to compare policies online and research thoroughly before you purchase insurance.

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.