Bike insurance is an agreement between the client and the service provider for offering specific services on happening or non-happening of a particular event to the bike prescribed in the policy document. To meet the requirements of the client as well as the purpose of the service provider, it is necessary to know a few of the terms that hold a considerable significance in the bike insurance field. One who knows these terms can understand the policy in a better way and can have a clear idea about the protection he has got or things which are not covered.
- IDV: The Insured Declared Value is the main factor that contributes a lot to the premium of the bike. It is the value that one can have from the insurance company if the bike is damaged beyond repair, total loss or stolen. With the time the IDV of a vehicle gets reduced and hence the premium for the bike also decreases. While selecting the IDV, the buyer is provided with a range from which he needs to choose the same.
- OD: OD is a term used for own damage. There can be two types of damages which are known as own damage and third party damage. The own damage covers the vehicle which is insured by the service provider; it also includes the rider and pillion. If one goes for a comprehensive plan, he may get the claim for the own damage as well. In case of own damage, the damage caused to the vehicle by man-made factors as well as natural calamities is also covered.
- Third-party Insurance: While one rides his bike, he may cause physical damage others via an accident or any other reason. In third party insurance, such events and damage due to the same are also covered. One may injure a pedestrian, another vehicle or any property by hitting it with the bike. In such case, one is liable to pay the penalty and the same is covered by the insurance company under its plan.
- Voluntary Excess: In this term, one can get coverage for some items which he may have fixed voluntarily. It could be due to an increase of safety level for the vehicle or rider. Doubtlessly such items are costly and useful to the vehicle which one needs to explain in voluntary excess. There are also some clauses where one can get zero depreciation and roadside assistance which is also covered under this term only.
- Compulsory Deductibles: As per the plan, there are some deductibles provided by the insurance company which are mandatory. In these deductibles, one can go for additional discounts and NCB as well as some other provisions which vary from service provider to service provider.
- Comprehensive Cover: It is a plan, where almost every kind of damage to the bike as well as physical injury to rider and the third party is covered. Hence, in a nutshell, one can say that it is a complete plan with the help of which one can get optimum protection to the bike. It is the reason why most of the bike owners opt for a comprehensive insurance plan. However, the cost of this insurance is a little higher; most of the experts recommend this plan only.
- Cashless Garage: In case of an accident, one needs to get their bike repaired. The insurance company has its network garages where one can get the same repaired without paying any amount from his pocket. Therefore, in case of severe damage to the bike, this facility can be much useful to the owner. However, one has to bear a little cost of some parts and a processing charge while making a claim through these garages.
- NCB: It is the most known term in the world of bike insurance. It is No claim Bonus which is offered by The Bike Insurance Company to the buyer if he pays premium regularly and there is no claim in the past year. It is transferable in nature, and helpful to get the premium of new policy lowered to a good extent. It is mentioned in per cent form and counted while going for the renewal of the policy.
So, these are some of the crucial terms you need to keep in mind. Knowing the same will help you know the best policy for you.
