Purchasing a bike insurance policy is necessary to protect your finances and stay on the right side of the law. However, it contains numerous difficult-to-understand terms. People typically do not read this information and purchase the policy without understanding what they are getting into.
Here are a few insurance terms explained in layman’s terms.
- Party One, Party Two, and Party Three
These are standard terms in auto insurance. The owner of the motorcycle (and the policy) is the first party, while your insurer is the second party. Lastly, a third party is any person who sustains damages due to the insured bike.
- Coverage of third-party liability
The Motor Vehicles Act of 1988 mandates the purchase of a third-party two-wheeler insurance policy. As its name suggests, it only covers damages to third parties.
- Complete coverage
A comprehensive policy like Bajaj Allianz bike insurance includes coverage for both third-party liability and own damage. In addition to theft protection, this policy also provides coverage for damages caused by man-made or natural disasters, among other benefits. *
- Unclaimed bonus
The insurance company would offer you a No-Claim Bonus if you did not file a single claim during the previous policy period (NCB). This NCB increases each year without availing your claim. The maximum concession it can offer on your motorcycle insurance premium is 50%. *
- Declared Insurance Value (IDV)
It represents the current market value of your motorcycle. If your bike is stolen or totalled in an accident, you will receive an amount equal to IDV. *
This is the amount you are required to pay when filing a claim. A two-wheeler insurance policy has two types of deductibles: voluntary and mandatory deductible. Under voluntary terms, it is your option to pay the amount, but keep in mind that doing so will reduce the amount the insurance company is obligated to pay. In contrast, a mandatory deductible is a fixed amount that must be paid to the insurer. *
Before providing you with an insurance policy, your motorcycle is inspected to determine its condition. In the event of an accident, your motorcycle will be inspected by an insurance inspector before your claim is processed.
- Additional protections (Add-ons)
These can only be purchased in conjunction with a comprehensive plan and serve to enhance it. Depending on your needs, you can choose from the available add-ons such as roadside assistance, engine protector, etc. *
Your bike is likely to sustain damage over time, which would diminish its market value. Therefore, the depreciation amount will be subtracted from your claim. *
- Grace period
When the policy term expires, it is crucial to renew your Bajaj Allianz bike insurance. If you don’t do so, your insurance policy will lapse. Nonetheless, a number of insurers provide a 30-day grace period during which you can renew your policy without undergoing an inspection or forfeiting the accumulated NCB. *
- Non-cash claim
In the event of damage to your motorcycle, you can take it to a network garage affiliated with your insurer. Under this, the insurer and the network garage will settle the bills. You only need to pay the deductible; everything else will be covered. *
- Reimbursement claim
If there are no network garages nearby and your bike is damaged, you can take it to a preferred garage and pay for the repairs yourself. You can later submit a reimbursement claim for the expenditure. *
Buying a motorcycle insurance policy online is significantly more convenient than the conventional method. Just search for bike insurance check online or simply visit the insurance company’s website and provide the required information. Now that you understand the meaning of all technical terms used in two-wheeler insurance make an informed decision and purchase a policy that meets your requirements.
* Standard T&C Apply
‘Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.‘
Subscribe to Bajaj Allianz General Insurance YouTube Channel here!