Indian Two-Wheeler Insurance Terms Glossary
The meaning of complicated words that you see when you do your check bike insurance online is now easy to understand! To better comprehend terms used in two-wheeler insurance, refer to the definitions of the various types of jargon used in bike insurance provided below:
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Premium
Your annual payment for your Bajaj Allianz bike insurance policy is the premium. You periodically pay the insurer the bike insurance premium to cover particular risks. The insurance company levies a fee known as the premium in exchange for covering these risks. Several variables determine the cost of bike insurance.
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Insured
An insurance policy provides a financial safeguard against losses or damages to the bike. The insured is the one covered, and the insurer provides protection. The two-wheeler covered by the bike insurance is the asset insured.
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Insurer
The entity that provides financial protection against losses or damages to an insured asset is known as the insurer, as was previously mentioned. The insurer charges a premium by a set renewal date to provide financial security for the insured vehicle.
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Own Damage Cover
Own Damage bike insurance covers accidents, explosions, fires, disasters, and irreparable damage, protecting you from repair and replacement costs. Additionally, it has theft protection for bikes and scooters. *
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Third-Party Insurance
You are shielded from losses or damages incurred by third parties by purchasing third-party insurance or a third-party liability plan. It covers the financial and legal obligations incurred due to vehicle damage, bodily harm, accidental passing away, and third-party property damage. Since it is mandatory by law, the traffic police may fine you for not having third-party bike insurance on your motorcycle or scooter. Make sure you do your Bajaj Allianz two-wheeler insurance renewal for a third party on time.
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No Claim Bonus (NCB)
As the name implies, the insurer gives you a concession for refraining from filing any claims throughout the policy term. In bike insurance, this concession is known as NCB. Each year without a claim results in an increase in the cumulative concession.*
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Zero Depreciation Cover
This add-on covers the depreciation of the two-wheeler’s insured replacement vehicle parts. Because you will be paid the full value of the damaged vehicle part, the add-on cover enables you to make a larger claim. It’s also known as Nil Depreciation Cover informally. You can purchase the add-on when getting or renewing a Comprehensive insurance policy. *
And never forget that on the internet, you can do a bike insurance check online on the go.
Having a clear understanding of common bike insurance terms is essential for every motorcycle owner. Familiarity with terms can help you make informed decisions when selecting and managing your bike insurance policy. Being well-versed in these terms ensures you have the right coverage to protect your bike and yourself while on the road.
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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.
