What is Bike Insurance Online Third Party the true fact you must know

What is Bike Insurance Online Third Party ? The true fact you must know.. In this post we will share the Bike insurance 3rd party benefits and its draw back. Prior to this lets have an understanding of terms used for renewal of bike insurance online or offline.

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Is bike insurance 3rd party still valid?

Did you know that India is now the largest two-wheeler manufacturer in the world? Around 60% of the two-wheelers are not insured today and are still running on the road. This is despite the fact that there’s a heavy amount of fines and even jail for riding without insurance. So why do you think some people still ride motorcycles without insurance? Well, proper knowledge about the benefits of having an insurance policy is one of  the many reasons. In today’s post, we learn all about the motorcycle insurance and how to choose best company for bike insurance online third party? Before I directly jump into explaining the types of insurance policies available in india; lets see the terms used in it.

Before you know how to get bike insurance you must know the following terms.

1. IDV or insured declared value

The term IDV or insured declared value Or also known as Sum insured. It is the maximum amount your insurance company will pay when your vehicle is damaged beyond repair in an accident or gets stolen. In short IDV is the current market value of your motorcycle.

How to find out the IDV of your motorcycle?

Go to www.idv.gicouncil.in select your vehicle type, state, manufactured year, month, make, model and variant. And the site will show you an approximate amount of idv on screen.  Remember it keeps falling as your bike gets older. Typically about 10 to 15 each year on average.

2. While doing third party Insurance Online for Bike how you calculate depreciation? Bike insurance with zero depreciation

Depreciation is the factor that affects the value of the bike,overtime. As the bike ages, there is wear and tear of its component. So; the insurance company will consider depreciation factor, in the valuation of not just the components of the bike but also the overall valuation. All the components of the bike, (except the glass components) are taken as liable for depreciation. As they have limited lifespan and wear and tear occurs over time. In the event of you making a claim; the insurance company would pay you only after deducting the depreciation value. Therefore you would receive compensation lower than the market value of your bike. The older the bike is, the greater the depreciations are. Bike insurance with zero depreciation we will share the tips in next post.

3. Claim settlement ratio or CSR terms used in online bike insurance third party or first party

Claim settlement ratio or CSR : CSR is the percentage of claims that an insurance company or  provider settles in a year  out of total claims. It acts as an indicator of their credibility as a general rule the higher the ratio the more reliable the insurance company is. You can easily find the csr  of a different companies on the official website of IRDAI. You should check the CSR before you opt for bike insurance and choose to buy online.

4. No claim bonus in online third party bike or car insurance  

No claim bonus or NCB is a reward given by the insurance company to an insured for not raising any claim request during a policy year. The ncb is basically a discount ranging from 20 to 50 % . And is given to the insured while renewing a policy.

5. Who are the parties in renewal of bike insurance policy ?

Insurance is like a contract. And like every contract it is between two parties. There’s a saying that  goes like: customer always comes first. So you as a customer becomes the first party.  Basically if you’re buying the policy you are the first party. The company you are buying the insurance from is the second party. The second party accepts the premium and offers the policy. That is basically a promise bound by the policy wordings. A third party is someone other than the first party and second party. For example a pedestrian walking on the street, if he gets affected by your motorcycle.

Alright now that we are familiar with the common terms.

Types of insurance policies available in india and their benefits drawbacks and some add-ons like zero depreciation.

1. Bike insurance 3rd party – Bike insurance online third party benefits drawbacks.

The third party insurance in the unfortunate event; if I meet with an accident and hit a pedestrian he becomes the third party; right these third parties can get affected or their properties can get damaged; because of my bike in such scenarios the first party which is me is liable to compensate the third party. The pedestrian and because the first and second party have a contract in place the insurance company will handle the liabilities as a part of the third party insurance.

Types of third-party insurance – Must know before you opt for online bike insurance..

Types of third-party insurance available in the market.

A regular one and a limited one – This you get for a very cheap price and it will only cover about 6000 rupees of third party damage. That’s called as a limited third party insurance. Increase the premium a few hundred bucks more and that coverage will increase up to one lakh which is the regular third party insurance. Which is most popular in bike insurance 3rd party. As per the1988 motor vehicle site having at least this third party insurance of bike and car is monitoring for each of us to ride the motorcycle or drive a car on the road; if not the traffic police officer may charge you a fine of up to two thousand rupees for the first offense and up to four thousand rupees for the subsequent offenses.             

Bike insurance comprehensive and cost for comprehensive bike insurance.

   Bike insurance comprehensive vs third party.

Q1. Why you should always choose something called as a first party insurance or better known as a comprehensive insurance?

This includes all the benefits of a third party liability and plus own damage insurance cover and a personal accident cover. The best policy is comprehensive bike insurance or car policy compare to third party.

Under comprehensive insurance policy; the bike will be insured against loss or damage. These conditions may vary from one company to another and might change over time. Hope now you understand bike insurance comprehensive vs third party.             

For example:  The terms and condition of United India Insurance as on 24th july 2021 is as..

First party comprehensive policy will also cover personal accident for owner driver for up to1 lakh Rs.

This depreciation this is what I explained at the beginning of the post. To avoid this depreciation value of your motorcycle parts you can buy a policy called zero depreciation policy.

Zero depreciation bike insurance vs comprehensive.

Zero depreciation policy might cost you a few hundred bucks more compare to comprehensive. But it is totally worth it. In the unfortunate event zero depreciation policies do not consider the depreciation value of your motorcycle parts. You will get the full IDV of your motorcycle.

You might need to pay 100 rupees or so as a filing charges also remember even a zero depreciation policy does not cover oils and consumable charges.

Bike Insurance Online Third Party – FAQ

Q1. What is IDV or insurance declared value?

Answer. IDV or insurance declared value is the maximum amount your insurance company will pay you in case of total loss.

Q2. What is the meaning of depreciation in online renewal of bike insurance ?

Answer. While doing renewal of bike insurance policy just keep in mind that depreciation is the factor that affects or rather lowers the value of your bike over time.

Q3. How I can get zero depreciation bike insurance ?

Answer. For zero depreciation insurance policy you can always check the CSR of an insurance company.

Q4 . Are bikes covered by home insurance ?

Answer. Its a very tricky situation. You may get the claim by having an insurance of your home. ( If your items are insured in home insurance). In road accident cases you may not get the claim.

Q5 . What is Online Third Party Bike Insurance?

Answer. Bike insurance 3rd party policy only covers the damage caused by you to a third person or property. The company will not pay you a single rupee in third party bike Insurance.

List of best Bike Insurance company in India.

  1. Bike insurance renewal icici lombard . Renewal of bike insurance icici lombard policy is in trend.
  2. iffco tokio bike insurance.
  3. Bike insurance bharti axa.
  4. Tata Aig bike insurance. 
  5. Bajaj Alianz bike insurance.                     

Conclusion

You can opt for the comprehensive bike insurance. For more profit at zero depreciation. Leading insurance provider sale third party bike insurance online. 

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