Tag Archives: insurance

Pay-as-you-ride insurance scheme

The world’s first pay-as-you-ride insurance scheme has launched in America allowing leisure and seasonal riders and those who own more tan one motorcycle to reduce their insurance costs.

It makes a lot of sense and we hope it takes off in Australia where you have limited options to reducing your very hefty insurance premiums.

We would also like to see something similar for registration fees. After all, why should we pay full registration for a motorcycle that may sit in the garage for weeks on end?

Riders are already used to pay-as-you-go road tolls and there are several cities in the world where you pay to enter CBD zones.

There is also talk of such systems in Australia to reduce peak-hour congestion. 

So it makes sense t ave insurance and eras registration tied to distance travelled.

The pay-per-mile scheme launched in the USA by insurtech company is called VOOM.

It allows riders to accurately tailor their insurance premium to the number of kilometres (or lies in the States) that they ride.

So if you are snowed in for several months or only get out on the weekend or have several bikes, you could substantially reduce your premiums.

It will be launched first in Arizona, Illinois, Indiana, and Ohio and is underwritten by Markel American Insurance Company.

VOOM says its research shows that the risks associated with low-mileage riding can be more than 80% lower than that of high-mileage motorcycling. 

Some other products do allow riders to stall their insurance during winter months, but this is the first pay-as-you-go system in the world, the company claims.

VOOM  does not require a physical device or mobile app to track mileage or behaviour. Instead, riders simply submit a photo of their odometers every month.

Coverage is accompanied by online policy management, and varied other coverage options available to qualified riders, including liability, comprehensive, medical payments, collision, uninsured motorists, and accessory coverage. 

Source: MotorbikeWriter.com

‘Free’ vehicle check service offered

A major Australian insurance company has launched a “free” check on the history of used motorcycles and other vehicles so you don’t buy a lemon.

If you are buying a used motorcycle, you should check to see if it is stolen, has money owing on it, has been written off in a crash or has been damaged in a flood or storm.

Buyers used to check the state-based REVS (Register of Encumbered Vehicles) or VSR (Vehicle Securities Register).

Since 2012, this has been nationalised in Australia under the Personal Property Security Register website which now costs $25.

There are several private websites that offer similar services, but they can be quite expensive and may offer information that is not relevant to your purchasing decision.

Be wary if you simply Google-search for “PPSR” as you will also find private suppliers.

These are only useful if you want a more in-depth report that may show things such as odometer regularities, or “clocking” where the seller winds the odd back.

‘Free’ service

Now Budget Direct insurance company has launched a “free” service.

It says it’s a “car search”, but it also works for motorcycles as Budget Direct does insure motorcycles.

This service may save you a couple of bucks, but you need to know that you have to supply your email and phone number.

After I did a search as a test, Budget Direct contacted me via email for an insurance quote.

I then tried to manually unsubscribe from their email service several times, but it kept throwing up an error.

I have not yet been contacted by phone, but I suspect that may be coming.

So while the service may be free from payment, there could be an associated hassle.

PPSR check

There are several scams that make buying a second-hand motorcycle a risk. Click here for some of the most prominent scams.

At least you can be assured with an official PPSR check that you do not end up buying a lemon, a stolen bike or one that will be repossessed by a finance company because the previous owner still owed money on it.

To make a PPSR check, you will need to supply the vehicle identification number (VIN). Never buy a vehicle from anyone unless they provide the VIN.

You can find the VIN on a registration notice or on the bike’s steering head, front frame or on the bottom of the engine.

It could be on a special plate, or stamped or etched into the frame or engine.VIN PPSR Cheap and easy check on used motorcycles

Turn the handlebars to the left and look on the right side of the frame where the steering head goes through the frame.

In a car, a VIN could be in a number of different places: Wheel arches, dashboard, boot, under the spare tyre, doors, door frames, and in the engine bay.

PPSR can also be accessed for various other personal property such as cars, boats, caravans, pant, machinery, shares and even works of art.

You can also search non-material items such as accounts, intellectual property, investment instruments, or licences.

Source: MotorbikeWriter.com

Call to replace rego with user-pays fuel levy

A riders group is seeking to scrap vehicle registration in favour of more expensive fuel through an extra state fuel levy, plus a user-pays tracking system for electric vehicles.

The Queensland-based Motorcycle Advocacy Group Facebook group which claims membership of more than 1100 riders, mainly in South-East Queensland, has sent its proposal to the national cabinet.

Unfair rego

Spokesperson David White says the current fixed-cost vehicle registration system is unfair, especially to those with multiple vehicles, while the current federal fuel excise is diminishing as vehicles become more economical.

The group wants rego axed and replaced by a state fuel levy on top of the current federal fuel levy.

“There is a need for a simple, efficient and effective way to improve road funding and a user-pays system for registered road vehicles could achieve this,” the MAG proposal says.

Motorway tolls traffic lane filteringDavid White with his 2007 BMW R1200S

“A user-pays fuel levy system for internal-combustion-powered registered road vehicles could be in addition to fuel excise.”

However, they say there would still need to be a nominal annual fee for each vehicle to cover administrative costs.

“Trailers and caravans could have their registration and insurance paid through the extra use of fuel by the towing vehicle,” the proposal suggests.

“The levy could be based on zones, a higher levy in urban zones and lowest in regional and remote zones. This may also lead to a quicker uptake of electric vehicles in cities and urban areas.

A zonal system would be fairer and more equitable as the average fuel consumption for country motorists is usually greater than the average fuel consumption of city motorists. City motorists commonly have a range of essential services close by and also have access to good public transport facilities.”

David says motorists driving and riding electric vehicles should have a user-pays system based on distance travelled via a secure tracking device that protects location privacy.

Levy advantages

David says their proposal would “help meet the current needs of those in financial hardship, boost jobs throughout the economy, lower emissions and traffic congestion, add to the health and wellbeing of the general population and boost productivity quite significantly”.

Owners of multiple vehicles wouldn’t pay onerous rego costs per vehicle under the proposal.

Riders would also be advantaged by the comparatively low fuel consumption of motorcycles and scooters.fuel gauges MBW Motorbike Writer fuel scooter economy

“As motorcyclists, we have noticed repeatedly the omissions of  motorcycles and scooters in most of the inquiries, reviews, reports and plans  that deal with land transport reform and traffic congestion,” David says.

“It is also apparent that these inquiries, reviews, reports and plans do not address some of the basic needs and aspirations of private vehicle owners.  

“Despite overwhelming evidence that reform of land transport is long overdue, these inquiries, reviews, reports and plans haven’t been embraced by the Australian people.”

User pays

There have been several other user-pays proposals over the years including a congestion tax that would be offset by cheaper rego.

In New Zealand, riders get cheaper rego if they complete a rider training course.

  • What do you think of this proposal? Leave your comments in the box below.

Source: MotorbikeWriter.com

Bike warranty extensions for pandemic

Motorcycle manufacturers are starting to offer warranty extensions because of the down time during the pandemic lockdown.

It began in India a month ago with companies such as KTM, Royal Enfield and Benelli offering up to three-month extensions on the warranty period of new motorcycles.

Since Royal Enfield also offered the extension in the UK, we asked the Australian importers about a week ago if it would be offered here, but they have still not responded.

The first to follow up here was Ural Australia with a three-month extension on the standard two-year warranty.

Mat Hodge of Ural AustraliaMat Hodge of Ural Australia

They have now been followed by three-month extensions on warranties on all new MV Agusta motorcycles and BRP products such as the Can-Am Spyder.

It’s a smart goodwill gesture to retain the loyalty of customers who feel they are have lost out on warranty while their bike has been up on its stand in the garage.

Since few customers will ever actually need the warranty extension, it’s also large a token gesture.

In fact, Murphy’s Law dictates that when you need a claim it’s just after the warranty has expired. Thankfully, a good dealer will honour those anyway.

We are surprised more manufacturers and importers have not offered a warranty extension as well as a roadside assist extension.

Just remember this when it comes time to chose your next motorcycle!

Rego and insurance extensionsDynamoto motorcycle stand

Check out the amazing Aussie-made Dynamoto stands

When we first suggested the warranty extension a month ago, we also suggested state governments extend rego and insurance companies extend premium periods or offer a discount.

While no Australian states or territories have come to the party, New Zealand has extended vehicle registrations and warrants of fitness (annual roadworthy certificate) by a whopping six months.

Typical of our cousins over the ditch to be ahead of us on compassion and kindness!

Meanwhile, the only insurers to offer riders a benefit are QBE who have made a token gesture with a $50 gift card for private car owners and just $25 for motorcycle owners.

Gift cards will be able to be used for a “wide variety of goods and services including supermarket shopping, petrol, and at a host of other retail outlets”.

The discount represents about 25% of the average private-use motor insurance policy from April to June. However, motorcycle insurance is often more expensive, so it might be a smaller percentage.

Still, it’s better than nothing.

We have heard that some other insurers such as Youi are offering discounts for private cars, but we have not yet been able to confirm any discounts for riders.

Similarly, remember this wen it comes time to renew your insurance!

Source: MotorbikeWriter.com

Insurers should offer pandemic discount

Insurers should be offering a discount or extension on premiums because people are not able to use their motorcycles and cars as much.

We already suggested registration, warranty, roadside assistance and servicing offers should be extended and that met with approval among many readers.

So far, the only Australian motorcycle company coming to the party is Ural Australia who have extended warranties by three months.

Now QBE insurers have made a token gesture with a $50 gift card for private car owners and only $25 for motorcycle owners. They will contact customers soon with details of how to access the benefit.

They tell us gift cards will be able to be used for a “wide variety of goods and services including supermarket shopping, petrol, and at a host of other retail outlets”.

QBE Australia Pacific CEO Vivek Bhatia says the gift card represents about 25% of the average private-use motor insurance policy from April to June.

However, motorcycle insurance is often more expensive, so it may be a smaller percentage.

Still, it’s better than nothing.

We have heard that some other insurers are offering discounts for private cars, but we have not yet been able to confirm any discounts for riders.

Some people can still ride to work, to get grocers, visit the doctor or for a few other valid reasons.

For all other riders, their bike is just up on the stand in the garage on the trickle charger, burning registration money, wasting insurance premium and running down the warranty period.

Dynamoto motorcycle standCheck out the amazing Aussie-made Dynamoto stands

Insurance should surely be extended or discounted because there is little risk of a crash while it is in the garage up on its stand.

The only risks are that it could be stolen or destroyed in a house fire.

Extended warranty

We notice that in India, KTM, Royal Enfield and Benelli are extending warranties and free service offers for all models, while Benelli is also extending its roadside assistance program.

Royal Enfield is matching the offer in the UK so we asked Royal Enfield Australia if they would offer it here, but they have not replied.

Ural Australia has extended warranties by three months for all new motorcycles sold up to 30 June 2020 on top of the standard two-year manufacturer warranty.

2017 Ural Australia

What a great move to ensure the loyalty of customers.

Be aware that just because your bike may be idle and not racking up the kilometres to the next scheduled service, it may still need a service. Check your bike’s manual for the maximum time interval between services.

If you don’t rack up the distance, it probably still advises an annual service.

Click here for more details on how to hibernate your motorcycle.

Extend regoBenzina number anti-theft plate holder plate scam cloning

As for registration, it is made up of an insurance component and a payment to help maintain our roads.

If you are not riding, you are not an insurance risk and you are not doing any damage to the roads (not that motorcycles do much road damage anyway!).

So state governments should offer an extension of registration periods for these mandatory lay-offs they have enforced.

In New Zealand, they are extending vehicle registrations and warrants of fitness (annual roadworthy certificate) for six months.

Source: MotorbikeWriter.com

Why You Shouldn’t Cancel Motorcycle Insurance During Winter

By Cyndy Lane: Traveler, Blogger, Writer, Loves to write about personal travel experiences

If you are the proud owner and rider of a motorcycle, you will know how important it is to have insurance coverage in place. Insurance provides protection against a range of incidents such as accidents, theft, fire, damage, and third-party liability in the event of an accident. There are various different levels of motorcycle insurance you can consider, so you should be able to find the ideal one for your needs.

Once you have your cover in place, you can look forward to peace of mind and protection when you hit the road on your motorcycle during the summer. Of course, in the winter, the roads are often not safe enough depending on where you live, so you may decide to store your bike during the winter months and use other methods of transportation. If you do this, you may also be tempted to cancel your insurance cover during the months you are not using the motorcycle, but this could prove to be a mistake. In this article, we will look at some of the key reasons why you should keep your motorcycle insurance active, even during the winter when you are not riding it.

What Are the Reasons?

We all want to save money where we can, which is why some riders decide to cancel their motorcycle insurance when they are not actually riding their motorbike for an extended period. However, there are various reasons why you should think twice before you do this. Some of these include:

You May Face Fees and Penalties

When you take out insurance coverage, it is designed to cover you for the period of one year, at which point you can renew or go elsewhere for coverage. However, if you decide to cancel partway through the year because you will not be using your motorcycle, you could face penalties and early termination fees, and these can be very costly. So, it is well worth considering whether you will be better off keeping the coverage in place rather than being hit with huge financial penalties.

You Will Lose Valuable Protection

As we know, insurance coverage protects us in the event of damage or injuries caused during accidents while on the road. However, it also covers you for problems that could occur when you are not on the road such as the theft of your motorcycle or fire damage. If you cancel your insurance cover, you will lose this protection. So, if something happens to your motorcycle during the months you are not riding it, you will have no protective cover in place.

You Will Be Unable to Ride Your Bike

While you may think that you will not ride your motorcycle at all during the winter months, you never know when the odd day of decent weather might come along. If and when this does happen, you may want to take to the road on your motorcycle. However, if you have cancelled your insurance cover, you won’t be able to do this. So, it is worth keeping your insurance cover active so that you can still ride your motorcycle in winter if you are able to.

What Can You Do?

So, what can you do in order to continue to enjoy protection? Well, it is worth noting that there are some insurance providers that offer lay-up insurance plans. These plans make things far easier for you, as you can benefit from reduced costs when your motorcycle is not being used for an extended period but you will still be protected when it comes to things such as fire damage or theft of your bike. So, you can look forward to continued insurance cover even if you will not be riding your bike and do not need liability coverage. There are also some lay-up policies that do allow for occasional riding of your bike, such as when the weather take a turn for the better. You can go online to get a competitive motorcycle insurance quote, which will make it easier for find cover that fits in with your budget.

If you want to enjoy continued protection rather than cancelling your insurance plan altogether during winter, it is well worth checking with your provider – or another provider – whether they offer this type of plan. This is something that will provide you with much greater flexibility when it comes to your insurance coverage and means that you are not left completely unprotected during the winter.

Motorcycles do not come cheap, and the last thing you want is for your expensive dream machine to be at risk. By making sure you keep some level of cover in place during the winter months, you get to benefit from far greater peace of mind as well as valuable protection. 

Source: MotorbikeWriter.com

Will insurance require tracking and rider aids?

Future motorcycle insurance policies could require riders to fit electronic devices that monitor their location and riding activity and warn riders of impending crashes.

Riders have long suspected this could be coming and now there are two such schemes about to begin in Europe.

We recently reported on Vigo Insure where policy holders install a tracking system in their bike in return for premiums as low as $A11 a month.

It is only available in Slovenia and Croatia but is valid in all parts of Europe and will be available soon in other EU markets.

Insurance alert

Now Israeli startup Ride Vision is partnering with Italian insurance company Sara Assicurazioni to reduce premiums if riders install Ride Vision’s predictive vision system.

Ride Vision’s system uses their artificial intelligence in their patented Collision Aversion Technology (CAT).Future motorcycle insurance policies could require riders to fit electronic devices that monitor their location and riding activity and warn riders of impending crashes.

CAT uses cameras and sensors to recognise and analyse “relevant threats without disturbing the rider’s critical focus”, sending a visual and audio alert to the rider of an impending collision.

It is similar to crash avoidance technology that has so far only been included in cars.

However, several motorcycle companies such as BMW, Ducati, Honda, Kawasaki, KTM and Yamaha are working on similar detection and warning devices.

It also operates as a dashcam, allowing riders to obtain evidence in case of an accident.

Ride Vision’s CAT will be available in Italy from the beginning of next year by Ride Vision’s official distributor Autobynet SpA.

Thin edge of the wedge?

Are these insurance “incentives” the thin edge of the wedge in privacy invasion?

Could insurance companies cancel your insurance if you speed, ride at night, attend a track day, ignore crash alerts, etc?

Perhaps, but the European parliament is very protective of privacy and the companies will no doubt be bound by tough data regulation.

The Vigo Insure policy can access rider data if they are involved in a traffic accident.

Vigo Insurance policy includes Vigobox tracker
Vigo’s tracking device goes under the bike seat

However it is limited to the rider’s name, phone number, policy number and accident location.

If the rider doesn’t give explicit consent, the insurance company or any other third party cannot access the ride recordings.

That’s not to say other insurers in other countries will be as considerate if this type of surveillance becomes mandatory on policies in future!

Ride Vision CEO and co-founder Uri Lavi says: “We believe that every insurer will be happy to copy the same model in their countries.”

Some may find these great safety devices and enjoy the insurance savings.

And how soon will these devices be made mandatory?

Only a few years ago ABS was optional and now it’s become mandatory. What’s next? Traction control, monitoring devices, crash-avoidance warnings?

Source: MotorbikeWriter.com

Insurance policy tracks motorbikes

A motorcycle insurance scheme where policy holders install a tracking system in their bike in return for cheap premiums as low as $A11 a month has started in Europe.

Vigo Insure is another product from the Slovenian start-up who developed the aftermarket Start Turn System (automatic self-cancelling indicators) and the Smart Brake Module to prevent tailender crashes.

Now they have invented a telematic product called a Vigobox that sits under your seat and tracks your motorcycle.Vigo Insurance policy includes Vigobox tracker

It informs the owner via a phone app if your motorcycle has been moved and even sends an emergency call for help if it senses you have crashed.Vigo Insurance policy includes Vigobox tracker

Vigobox is installed under your bike seat when you buy their Vigo Insurance policy and comes with an online portal to track your riding.

Cheaper policy

Some may say this is the thin edge of the wedge of privacy invasion with insurance companies able to cancel your insurance if you speed or ride at night.

Others may find it a safety device that can track a stolen vehicle and also reduce your insurance premium.

The monthly costs of the insurance (with monitoring) are from €7 (about $A11) a month.Vigo Insurance policy includes Vigobox tracker

As usual, the price depends on the motorcycle brand and type.

Market chief Petra Zagmajster says Vigo Insurance has only been available in Slovenia and Croatia a few months but is valid in all parts of Europe. It has already reached 4.6% of the market share.

“Soon we’ll enter to other EU markets,” Petra says.

C-founder Rok Upelj says the motorcycle they use to test their products was stolen from a locked garage.

“In that moment we activated the police and hoped for the best, but we had no luck,” Rok says.

“Back then the vehicle wasn’t insured, because the insurance premiums were too high. We interviewed many motorcyclists, what the most important thing in owning a motorcycle was. The end result was, that safety and theft prevention come first – and that’s when the idea for VIGO was born.” 

  • Would you install a tracker if you got cheaper motorcycle insurance? Leave your comments below.

Source: MotorbikeWriter.com

Demo motorcycle rides increase sales 10%

Offering demo rides will increase motorcycles by 10%, according to EZ Rider Demo which has invented a system to help dealers offer more test rides.

Unlike car dealerships, motorcycle dealerships are reticent to offer demo rides for several reasons including heightened insurance risks.

EZ  Rider Demo has invented a system where potential buyers sign up for a demo ride through the dealer’s website.

They fill out an online form about their riding history and licence, then buy one-day insurance for $US20.

When approved, they get a code that unlocks the key from an electronically secured box at the dealership.

The company will soon begin testing their system in various Californian dealerships.

It’s an innovative, albeit complex, system aimed at addressing the problem of dealerships not offering demo rides.

Demo rides

You wouldn’t buy a car without a test ride, so why should riders be denied the opportunity to test out the bike first?

Some dealers don’t even allow customers to sit on their showroom bikes.Please do not sit

A 2015 US motorcycle industry study found that the availability of demo rides not only improved customer satisfaction of dealerships but also increased motorcycle sales.

The ninth annual Pied Piper Prospect Satisfaction Index (PSI) US Motorcycle Industry Benchmarking Study found that test rides were offered 63% of the time to mystery shoppers compared with 34% five years earlier.

It also found sales staff encouraged customers to sit on a bike 81% of the time, up from 70%.

A good dealer experience also translated to improved sales, with dealerships ranking in the top quarter selling 22% more motorcycles than dealerships in the bottom quarter.

It found Harley-Davidson, BMW and Ducati the most aggressive in offering test rides.

It is no coincidence that every Pied Piper study for the past decade or more has been led by those same three companies.

Aussie test rides

While there is no equivalent study in Australia, the results are perhaps indicative of strict global manufacturer training standards of dealer staff and attitudes to offering demo rides.

The lack of demo rides is one of the biggest complaints about dealerships we receive at MotorBikeWriter.com.

But many of these are for popular new models where demand outstrips supply and every bike that comes into the dealership is already sold.BMW Motorrad GS Off-Road Training

Perhaps the most aggressive brands offering test rides in Australia are Harley-Davidson, BMW and Indian.

Harley not only offers test rides to licensed riders, but also offers a static ride to unlicensed riders with their Jump Start program.

It’s rare for any dealer to offer test rides of off-road or adventure bikes because of the risk of damage, but BMW even hosts annual GS demo ride days around the country.

And Indian throws in free fuel and accommodation on their weekend demo ride offers!

We only have our own experiences and anecdotes of readers to go on, but it seems Japanese brands are the worst at allowing test rides.

Maybe that has to do with complacency because they are the four biggest sellers.

Sales trends

But with their sales down between 6.8-17.4% in the first quarter, they need to pick up their act.Slide sales motorcycles

It may cost more to have demo bikes available, but the results speak for themselves.

The motorcycle industry grapples with this basic sales technique.

Some dealers just see the cost of bike depreciation, fuel and staff time to take riders on escorted demo rides, rather than looking at long-term customer goodwill.

It also requires the manufacturers or importers to back them up with demo bikes and allow them to later sell them at a discount.

Riders see buying a bike as a lottery unless they can actually throw a leg over and feel the bike.

They need to evaluate the ergonomics for their body size, hear the noises, test the power and handling, and even feel the heat from the engine.

  • Have you ever been denied a demo ride? What did you do? Did you go elsewhere and buy the same bike or another brand? Leave your comments below.

Source: MotorbikeWriter.com

6 Motorcycle Insurance Terms You Must Know Before You Claim

(Contributed post for our Indian readers)

Buying a motorcycle is a life goal that each one of us wishes to achieve one day. For many, it may mean months of saving money and a loan on top of their heads. Whether you already own a motorcycle or not, it can be a costly investment and protecting it from any harm is paramount. The only way you can keep your bike safe from any physical damage and yourself from a financial dent is by getting it insured.

For Indians, not buying an insurance policy for their motorcycle isn’t an option. As per law, every motor vehicle plying on Indian roads should have valid motor insurance. As you set off on the mission to choose the best insurance for your motorcycle, you may get confused with the immense variety of policies available with different providers. To add to your woes, you’ll come across a lot of technical jargons and terminology which may make no sense to you.

In order to choose the right policy, you need to be aware of some of the motorcycle insurance terms which may help you save money on your premiums. You don’t have to go anywhere. We have simplified some of the most important motor insurance terms that will help you make a sound decision while buying an insurance policy.

1. Insured Declared Value (IDV)

The most common motor insurance term is Insured Declared Value or IDV. It refers to the current market price of the motorcycle to be insured. It is the maximum amount that you can expect to get from your insurance provider in case of a total damage claim. The total damage refers to the situation in which your bike has been stolen or damaged beyond repair. The age of your motorcycle helps to estimate its current IDV. If you deduct your bike’s depreciation due to age from the current selling price of your motorcycle by the manufacturer, you get your IDV.

It is important for you to understand the concept of IDV since it is directly proportional to the premium you pay. More the IDV amount, more the premium you pay. However, if you quote a lesser IDV amount than the actual current price, you might end up paying more than you should be in case your motorcycle is damaged/ stolen.

2. Own Damage Premium

At the time of buying motor insurance, you will often come across the term ‘Own Damage Premium’. Well, own damage premium is a part of your total insurance premium that covers your motorbike against any damage caused by factors beyond your control. Such factors may include natural calamities like earthquakes, floods, cyclone, etc along with manmade disasters like fire, bomb explosions, etc. Therefore, own damage premium is the part of your premium amount that you pay to ensure that your bike is covered against damage caused by natural calamities as well as manmade disasters.

Opting for Own Damage Premium helps you to obtain motor insurance cover equal to the Insured Declared Value. The own damage premium amount is estimated on the basis of your bike’s IDV, model, cubic capacity, etc along with the geographical location where you reside.

3. Third Party Liability Cover

An insurance policy also provides coverage to the damages caused to a third party if the insured is the at-fault driver. Third party liability coverage provides protection against any legal/ financial liability that may arise if you cause death/ injury or damage to another person or property while driving. Your insurance provider will compensate for the third party’s financial loss on your behalf. In India, third party liability cover is a compulsory coverage for all motorcycle owners under their motor insurance policy by law.

4. Personal Accident Cover

Besides the insured bike and the third party, an accident may also cause serious injuries to the insured person. In several cases, the accident can be fatal or may lead to permanent disability. As per the National Crime Records Bureau, 16 people die of roads accidents every hour and in 2013, more than 1,37,000 people were killed in road accidents. In such unforeseen incidents, personal accident cover of your motor insurance offers financial protection to the insured or his family by providing compensation. Since it is an additional rider benefit, opting for a personal accident cover will increase your insurance premium.

5. Zero Depreciation Cover

All motor insurance policies account for depreciation of replaced parts while estimating the sum insured amount. Zero depreciation cover is an add-on feature that can help you obtain a higher sum insured by eliminating deductions against the depreciation of replaced parts. However, zero depreciation cover attracts higher insurance premiums. Nonetheless, it is advisable to opt for zero depreciation cover as it can be availed only during the first few claims of your motor insurance policies.

6. No Claim Bonus (NCB)

Another important motor insurance term you may come across is No Claim Bonus (NCB). No claim bonus is a bonus discount that you receive if you don’t make any claim in the previous policy year. It is a discount that you get on your renewal premium for every claim-free year. The best part is that NCB is cumulative and can increase up to 50% if no claim is made. Thus, you can save a lot of money on your renewal premium with no claim bonus. Moreover, it can also be transferred to a different provider if you change your insurance company during policy renewal.


So there you go. Now that you know some of the most common and crucial motor insurance terms, you can choose the coverage extent and the premium amount of your choice. You can choose motor insurance wisely as you know what are you paying for and where can you save money.

Source: MotorbikeWriter.com