In India, two-wheelers rule the roads especially in the tier 2 and tier 3 cities. The usage and convenience of a two-wheeler can never be replaced by any other mode of transport. Whether it is meant for going to office, college or market, a two-wheeler is a smart and a practical choice for commuters. This mode of transport may be very convenient but it also comes along with certain risks. An accident on a two-wheeler is far fatal than the one in a four-wheeler. This is when you need a two wheeler insurance policy. With motor insurance policy, your ride is completely safe. Basically, a motor insurance policy provides financial cover for any damage to your two-wheeler caused by theft, accident etc. If you are buying a insurance policy for your scooter or bike for the first time, here are the basic terms of insurance you must know –
Premium is a fixed amount which every insurance holder must pay annually to enjoy the benefits of an insurance policy. The premium amount is calculated on the basis of a few factors like vehicle model, age, year and other registration details. There is not much difference in the premium amount offered by different insurance companies for a particular policy.
Cover is the actual sum of money which an insurance company agrees to pay in case of damage or loss of your two-wheeler. The cover or coverage for each and every policy differs from company to company.
This is one thing which nobody should ignore reading while buying an insurance policy. The term ‘exclusion’ means something that is not covered in your insurance policy. If a particular spare part of your two-wheeler has been damaged due to wear and tear of your vehicle, it is excluded from the cover. Any other damage caused to your ride with your own fault like drunk driving is also a part of exclusions as the damage was unnatural.
When you are covered under an insurance policy, you are entitled to get the claim for the damage. The term ‘claim’ means the situation where a person actually applies for the sum against the damages caused. If no claims are made for several years, the insurance company offers a no-claim bonus to the policy holder. The sum of no-claim bonus can also be used to buy a fresh policy in future.