Bike Insurance

Insured Declared Value (IDV)

You can calculate your bike’s IDV by subtracting the depreciation on vehicle’s part from its current market value. The registration cost, road tax and insurance cost are not included in the IDV. Also, if there are accessories that have been fit later, IDV of those parts will be calculated separately.

So if you are planning to renew two wheeler insurance, it is advisable to declare the correct IDV to your insurer because your claim amount depend on this. Unfortunately, if your vehicle is stolen or totally damaged during an accident, your insurer will refund the entire amount to you, mentioned on your insurance policy IDV.

Zero Depreciation

Depreciation means a reduction in the value of your vehicle and its parts over the years of usage. When making a claim, you may end up paying a large amount from your pocket since the insurance company deducts the depreciation amount charged against the damaged parts. But opting for a zero depreciation cover as an add-on under comprehensive insurance for a bike can help you save on out-of-pocket expenses. This is because the insurance company would bear this cover's depreciation amount charged against the damaged parts.

No Claim Bonus

NCB is a discount on the premium given to the insurer for having a claim-free policy term. A no claims bonus ranges from a discount of 20-50% and is something an insurer can earn at the end of your policy period by not making a single claim during the previous policy year.

You can’t get a no-claims bonus when you buy your first comprehensive bike insurance policy; you can only get it on bike insurance renewal. If you buy a new bike, you will be issued a new bike insurance policy, but you can still avail of the NCB you accumulated on the old bike or policy. However, suppose you do not renew your scooter insurance or bike insurance policy within 90 days from the actual date of the policy expiration. In that case, you cannot avail benefits of NCB.

How NCB is Calculated For Bike Insurance Premium

Your NCB comes in only after the first renewal of your comprehensive two wheeler insurance policy. Do note that NCB exclusively applies to the damage component of your premium, which is the premium calculated based on IDV of the bike minus the bike’s wear and tear cost. The bonus does not apply to third party cover premium. You begin with receiving a 20% discount on your premium after the first claim-free year. The discount increases by 5-10% at the time of policy renewal each year (as shown in table below). After five years, the discount will not increase, even if you don’t raise a claim in a year.

Emergency Assistance Cover

You can avail of this cover under the comprehensive bike insurance policy. With this add-on cover, HDFC ERGO offers you round-the-clock assistance to deal with emergency breakdown issues. The emergency assistance cover includes minor on-site repairs, lost key assistance, duplicate key issues, tyre changes, battery jump starts, fuel tank emptying and towing charges. For instance, if you face an accident and damage your bike/scooter, it must be towed to a garage. With this add-on cover, you may call the insurer, and they will get your vehicle towed to the nearest possible garage up to 100 km from your declared registered address.

Driving License

A driving license (DL) is the legal document which authorizes an individual to ride vehicle on road. In order to ride or drive a vehicle legally on the public roads, an Indian driving licence is mandatory. A learner's license is issued for learning. A month after the learner's licence is issued, the person has to appear for the test in front of an RTO authority, who upon proper examination, will declare if he/she has passed the exam or not. On passing the examination, a person can get a permanent driving license. Also, as per the Motor Vehicle Act, a person driving a vehicle without a licence cannot claim the insurance. If you caused an accident and were not carrying a DL, you are not eligible for third party claims. Any such insurance claims will be rejected by the insurance company and you are liable to pay the amount for the damage caused to the third party.

RTO

The Regional Transport Office (RTO) is the organisation of the Indian government responsible for maintaining a database of drivers and vehicles for various states of India. In addition, the RTO issues driving licences, organise a collection of vehicle excise duty and sells personalised registrations. Along with this, the RTO is also responsible for inspecting vehicle insurance and clearing the pollution test.

Vehicle identification number

A Vehicle Identification Number (VIN) gives the vehicle a unique identity. You can find VIN at driver’s side doorjamb or windshield or on registration certificate. A VIN comprises 17 characters (numbers and letters) that act as a unique identifier for the vehicle. A VIN displays the car's unique features, specifications, and manufacturer.

Bike engine number

Bike engine number is a factory-stated number mentioned on the vehicle’s engine. The bike Engine Number is also used for identification. However, this is not to be confused with the Vehicle Identification Number. It is often located on the side or bottom of the engine, near the crankcase or cylinder head

Bike chasis number

A bike chassis number, also known as a frame number, is a unique 17-digit code which can be found near the bike's handle or motor. Chassis number contains information about the bike's make, model, year, and other specifications.

Bike insurance policy number

The bike insurance policy number is a unique code associated with your insurance plan. Your insurance company uses your policy number to track and process insurance claims and costs.

Emergency assistance wider

Emergency Assistance Wider Cover, also known as Key Replacement Cover is an add-on cover that assists you in cases where the keys of the insured vehicle are lost, misplaced or stolen.

Peronal accident cover

A personal accident cover is a two wheeler insurance cover that compensates the owner of the vehicle, or dependents, in case of accidental injury or death involving the insured person’s vehicle.

Legal liablility cover

This policy takes care of the losses caused to the third-party person/property, or even death of the third party person in case of an accident due to the insured person’s vehicle. It is a liability cover in bike insurance, which does not cover loss or damage caused to your own vehicle.

Compulsory dedcutible

The compulsory deductible amount is fixed by the insurer and has to be paid compulsorily by the insured person whenever any claim arises. The IRDA (Insurance Regulatory & Development Authority of India) has determined the minimum amount of ₹ 100 as compulsory bike insurance deductible.

Collision coverage

Motorcycle collision coverage protects your expenses arising from bike damage due to collision with another vehicle or object, such as a fence, tree, or guardrail, regardless of fault.

Rental reimbursement coverage

Rental reimbursement coverage helps you pay for transportation expenses, such as a rental car or public transportation fare, while your two-wheeler is being repaired after a covered insurance claim.

Bike insurance quote

Bike insurance quote is the estimate of the premium payable towards the bike insurance coverage chosen by the insured person and the details entered by them. The amount of premium payable depends upon several factors like variant, make, model, plan, add-on cover chosen and so on.

Gearless bike

Gearless bike are simple to ride and here the rider does not have to make use of clutch and shift gears while driving. Gearless bikes come with come equipped with automatic transmissions. To ride motorcycle with gear, you need to have a specific driving licence for it.

Actual cash Value

Actual cash value (ACV) is replacement cost (RC) minus depreciation. When buying a new motorcycle, like any new vehicle, the value of that bike depreciates as soon as it leaves the dealership.

Agreed Value

Agreed value or Insured declared value of the bike depends upon the listed selling price declared by the manufacturer. It is calculated at the beginning of the policy term or during policy renewal and then adjusted with depreciation.

Anti Lock Braking System

Anti lock braking system (ABS) adjusts the braking pressure accordingly to prevent the wheel from locking and assists with maintaining the stability of the motorcycle. Motorcycles with ABS technology have been shown to be involved in fewer crashes on the road.

Guest Passenger Libaility

A guest passenger liability in two wheeler insurance is exclusively designed to provide coverage for bodily injuries or death of pillion rider due to accidents or insured perils.

Bike variants

Bike variants simple refers to the type of model of that bike. Variants specifies features which will be provided with that model. For e.g. a basic variant will be without ABS, while the higher variant might have ABS and digital speedometer.

Grace Period

The grace period is an extension of 30 days given to the insured person after the expiry date of the insurance policy. Within these 30 days, you must renew your bike insurance by completing the required premium payments.

Break-in insurance

Break-in insurance, also known as the break-in period, is the period between your insurance policy expiry date and the date when you renew it. During this time, your policy is inactive and your vehicle is not covered by insurance.

RTI cover

Return to invoice (RTI) cover is an add-on cover available with own damage or comprehensive bike insurance policy. With this rider you are entitled for compensation of the original invoice price of the bike in the event of theft or total loss.

Engine Protection Cover

Engine protection add-on provides cover for the damage caused to the bike's engine in a road accident or due to natural calamity. Additionally, it also covers the cost of damage to the gearbox due to any mishap or unforeseen incident, as well as damage due to engine failure or malfunction. It can also compensate for costs due to crankshaft, piston, and cylinder block damages.

Inspection

A bike inspection is a thorough examination of a bike's physical condition by an insurer’s representative. The inspection helps the insurance company determine the risk of insuring the bike and the amount of the claim.

Policy Endorsement

A policy endorsement is a document that amends the terms and conditions of an existing insurance policy. It is a written agreement between the insured person and the insurer to include/exclude specific terms and conditions or make changes to the existing ones.

Policy Inclusions & Exclusions

Policy inclusions and exclusions under bike insurance are the circumstances under which an insurer will pay out or not pay out, respectively, during claim settlement. Understanding these can help the insured person make informed decisions and avoid surprises when filing a claim.