COMMON BIKE INSURANCE TERMS YOU NEED TO UNDERSTAND

Today with the rising use of two-wheelers on the road due to its affordability to common people, there has also been a huge rise in the number of people who will buy bike insurance. But one must always do their research and avoid getting into financial losses when buying their Bike insurance. Here we are going to look at some of the common bike insurance terms that one should be aware of when they buy their insurance.

Common Bike Insurance Terms

Many times, people buy their bike insurance in a hurry and ignore all the details of the policy documents which can end up with them getting poor insurance coverage if they are not careful. The following are the common bike insurance terms one should always make sure to check before deciding which policy to get for their vehicle:

Party Involved

Insurance policies have party terms like first party, second party, and third party which are generally used to refer to the people who are involved. The first part refers to the policyholder, the second party refers to the insurance provider, and the third party refers to any other party that has received physical and financial damages due to the first party respectively. 

Coverage

Coverage is the benefits that one receives after buying bike insurance from the insurance provider such as third-party bike coverage, comprehensive bike coverage, etc. Coverage is hugely policy dependent and varies according to the policy that one has for their vehicle. It is always advised to get a comprehensive insurance policy.

Premium Charges

Insurance policies have set terms for getting benefits by paying premium charges that may be monthly or yearly basis.

Add-on Covers

These are extra insurance covers like zero-depreciation cover, emergency covers, engine protection, own damage cover, personal accident cover etc., that are available for the policyholder to buy if they choose to.

Insured Declared Value (IDV)

It is the total amount that the insurance provider will have to reimburse the policyholder if there is theft or total loss of the vehicle due to any unfortunate circumstances. IDV is subjected to yearly change at the time of policy renewal as the value of the vehicle can decrease over time.

NCB (No Claim Bonus)

This no-claim bonus is premium discounts that are provided if the policyholder has not claimed any insurance benefits during the previous insurance policy period.

Exclusions

Policyholders must always make sure to read all the exclusions in the bike insurance policy documents as it can have an impact on their claim. Insurance providers have set terms of exclusion such as damages due to over speeding, driving under the influence, rough driving, etc., if the claim falls under any of these exclusions, then the policyholder claim will not be granted.

Grace Period

Policyholders are provided with a grace period by the insurance provider according to the terms of the insurance policy till they can renew their insurance policy at a premium without paying any charges. The grace period can vary with the insurance policy and the policies of the insurance provider.

Services

One must always make sure to check all the services that they can avail from the insurance provider such as cashless, reimbursement, etc., that are mentioned in the terms and conditions of the policy documents.

Policy Cancellation

According to the terms of the insurance policy if one needs to change or cancel their insurance policy, they must inform their insurance provider.

Conclusion

One must always check all the terms of the insurance policy before they decide to buy bike insurance as it can help them get a better understanding of their insurance policy benefits but also exclusions that they should always avoid. Now, one can easily get insurance for their bike in just a few steps from Quickinsure by visiting official website- https://quickinsure.co.in/ and compare various available plans and get the one that meets their requirements.

FAQs - Frequently Asked Questions

Q1. Why does the IDV value of the vehicle decrease in the insurance policy?

Insured declared value or IDV is the total sum insured to the policyholder in case of a total loss of the vehicle by theft or any other unfortunate circumstance.

Q2. How long is the grace period in insurance policy terms?

It can vary based on the insurance policy one has and with market policies of the insurance provider. However, an average grace period can be of 30 days after the lapse of the policyholder insurance policy.

Q3. How long can it take to cancel the insurance policy?

An average of 7 days to 14 days is required for one to get their insurance policy cancelled or changed but this can vary based on the insurance provider's policy as well.

Q4. What are the main terms of the insurance policy?

The main terms of the insurance policy include insurance validity, bike insurance premium, IDV, NCB, and personal accident covers.

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