Common bike insurance terms that you should know 14th May 2020
Owning a bike may be a necessity for someone and a status symbol or merely a pleasure deriving activity for some other one. Owning a motorcycle is not a pleasure gaining fun, but some technical and financial terms protect the bike and the owner from some unwanted conditions or accidents. Taking care of your motorcycle by maintaining regular servicing and inflated tyres are just not the only deal to be done.
Additionally, you must have a comprehensive insurance policy to safeguard yourself and your bike against any unwanted losses. These situations can be damage to the vehicle by a third party when it was parked or in use or if it goes missing because of an act of theft. It becomes a necessary and essential decision in India to take bike insurance while buying a new bike.
While subscribing to bike insurance online in India or through traditional channels, there are specific important terms that the owner or the first party must keep in mind so that there are no chances of any future confusion and disputes.
Some standard terms related to bike insurance that you must be aware of are –
Premium - It is the amount that is paid by the first party to the second party for providing the insurance policy until the valid policy duration. This amount depends on multiple factors like the age, condition, model, actual price, area of registration of the vehicle. This amount is paid before or during the period of buying the policy.
Claim - It is the maximum monetary liability of the insurance company in case if the policyholder files a claim.
Insured declared value (IDV) - This is the maximum sum assured fixed by the insurer, which is provided on theft or total loss of the vehicle. IDV is the current market value of the vehicle.
No Claim Bonus (NCB) - It is a discount offered to the policyholder for not making any claim during the entire policy duration.
- First Party - This is the owner of the policy and the vehicle that buys the insurance policy and needs to pay the premium of the insurance.
- Second Party - This is the insurance company that provides the insurance policy to the first party.
- Third-Party - The third party represents the person or property involved in the accident between the first party and itself.
Bike insurance is nothing less than a healthcare plan for your bike, and many insurance companies provide bike insurance online in India . These companies make it easier for the user to buy an insurance policy from home and pay the premium online with the help of online cash transfer. Various covers that are available under a bike insurance policy are accident, fire, theft, natural calamities, third party losses, and bike owner cover.
When you purchase bike insurance online in India, you have the option of subscribing for additional policy riders for better protection. Buying a