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When you buy a bike insurance policy online, it can be easy to get confused with the various technical terms or jargon that are hard to understand. So, before you buy insurance for your bike or schooler, it is paramount that you try to understand the real meaning of these complex terminologies and its implications. In this write-up, we list down some commonly used two wheeler insurance terminologies so you can make an informed choice while buying or renewing bike insurance.
Premium is the amount you pay to the insurance company periodically for providing insurance cover. The insurer determines this amount at the time of buying the policy based on factors like bike model, year of manufacture, engine capacity, cost, your driving history, etc.
When you buy two wheeler insurance, you must be aware if it offers its own damage cover or just third-party cover. Own damage cover or OD cover helps get financial protection against the repair and replacement costs when your bike gets damaged in an accident, or due to natural and man-made disasters.
Third party or third party liability insurance plans protect you against the damages you may cause to the third-party involved in the accident. This type of insurance is mandatory for all bike owners in India, and driving without a valid third party bike insurance is a punishable offence.
Third party bike insurance covers financial and legal liabilities incurred due to physical injuries, accidental death, vehicle and property damage of the third party.
Insured declared value (IDV)
The Insured's Declared Value (IDV) of the vehicle will be deemed to be the 'SUM INSURED' for the purpose of this policy which is fixed at the commencement of each policy period for the insured vehicle taking depreciation into consideration. Insurance companies consider this as the base value for calculating the premium. It is also the maximum amount that your insurer will compensate if your bike gets stolen or gets damaged beyond repairs.
Remember, higher the IDV of the vehicle, higher the premium and vice versa. However, it is advisable to choose the right IDV so that you get the right compensation.
NCB is a reward that insurance companies offer to the policyholders for not filing a single claim during the policy year. The bonus could be a discount on the own damage portion of the premium, which you can avail while renewing the policy.
Add-ons are the additional benefits or coverage options that you can buy voluntarily by paying an additional premium. Add-ons help you get protection against specific risks that are not covered under the regular policy.
Some of the common add-ons that you can buy with two-wheeler insurance include, zero depreciation cover, roadside assistance cover, NCB protection cover, key replacement cover, etc.
When you buy insurance online, knowing the exclusions is as important as the coverage offered by the policy. When you file a claim, the insurance company does not cover all the expenses. The expenses that the insurer does not cover are called exclusions. For example, insurer do not cover:
• Damages due to mechanical or electrical breakdown
• Accident caused by person driving under the influence of alcohol or any other intoxicating substances
• Accident caused by person driving without a valid licence
Knowing the exclusions of your policy is paramount to avoid any discrepancy during the claim settlement process.
Being aware of the two wheeler insurance is vital to make the most out of your policy. For best insurance cover, you can consider buying the Kotak Long Term Two-wheeler Secure policy from Kotak General Insurance. Besides being affordable, it offers a wide range of benefits as per your needs.
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