Navigating the realm of bike insurance can be a challenging task, especially for those unfamiliar with the intricate terminology. To make informed decisions and truly understand the scope of coverage, one must decipher the jargon associated with bike insurance. This glossary sheds light on the key terms and phrases, providing clarity for policyholders in the complex insurance world.
- Third-Party Liability Insurance
This is the fundamental coverage required for all vehicles in India. It safeguards against any damage or injury caused by your bike to people or property.
- Own Damage (OD) Insurance
An optional coverage that protects your bike from risks such as fire, theft, accidents, and natural disasters. *
- Comprehensive Insurance
Comprehensive insurance combines own damage and Bajaj Allianz two-wheeler insurance third-party coverage to provide overall protection for you and your bike.
- No Claim Bonus (NCB)
As a reward for not filing any claims during the previous policy year, NCB significantly reduces insurance costs and promotes safe riding. *
- Premium
The amount paid to the insurance provider for policy coverage.
- Deductible
In the event of a claim, this is the portion of costs you agree to pay before the insurance company covers the remaining balance.
- Insured Declared Value (IDV)
The maximum payout by the insurance company in case of theft or total loss is influenced by factors like the bike’s age and market value.
- Policyholder
The individual is responsible for paying the insurance premium.
- Endorsement
Modifying an insurance policy can involve adding or removing coverage, updating personal information, or changing vehicle details.
- Additional Premium
The insurance company charges an extra premium for increased risk factors like modified bikes or inexperienced riders.
- Exclusions
Circumstances or conditions not covered by the insurance policy are crucial to understanding when filing a claim.
- Zero Depreciation Cover
An add-on that ensures the total claim amount without considering depreciation for certain parts during repairs or replacements. *
- No-Fault Insurance
Specific policies cover accidents where no party is at fault, allowing each involved party to claim under their insurance policies.
- Policy Term
The duration for which the insurance policy remains valid is usually a year.
- Rider
An optional addition to the base policy provides additional protection, such as personal injury coverage for pillion riders.
- Proof Of Loss
Official documentation provided to the insurance company as evidence of a claim is essential in the claims process.
- Renewal Grace Period
The additional time they are given to policyholders to renew their bike insurance after expiration without a break in coverage.
Understanding bike insurance jargon and add-ons is crucial for making informed decisions and providing comprehensive coverage tailored to individual needs. In the intricate landscape of bike insurance, a clear understanding of the associated jargon is paramount. Deciphering these terms ensures comprehension and the ability to make well-informed choices, fostering a safer and more secure biking experience. Claims are subject to terms and conditions set forth under the motor insurance policy. *
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*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.
