Many factors determine the premium.
For Own Damage cover, the premium varies from one insurance company to the other. Getting three or more comparison quotes is a worthwhile proposition. Checking various insurer’s websites or getting comparisons from an Insurance Broker’s Comparison website will help you to make an Informed choice. Do not forget to compare coverages, benefits, deductibles, IDV’s, etc. as premium will vary based on these parameters.
Third Party Liability Premium rates are laid down by IRDA.
In case of break in insurance (renewal after expiry), vehicle inspection would be required and extra charges, if any, may have to be incurred by the Insured.
Insurance Declared Value (IDV) is the maximum sum insured, which is provided to you in case of any theft or total loss of your vehicle. In layman’s language, IDV is the current market value of your vehicle. Also, the premium for your policy is calculated on the basis of the IDV. It is the maximum amount that an insurance company will pay if you lodge a claim for total loss of your insured bike. IDV decreases as the vehicle ages because of the depreciation factor.
No Claim Bonus (NCB) is the bonus accrued to an insured for not making any claims during the previous policy period which is extended as a % discount on the premium paid during renewal. As per current norms in India, it ranges from 20% on the Own Damage premium (and not on Liability premium) and progressively increases Year on Year of no claim to a maximum of 50%. (more…)
As the term implies, zero depreciation cover promises comprehensive coverage without factoring in for depreciation. If your car is damaged following a collision, for instance, and you file a claim, the insurer will cover the entire cost.
Yes, you can avail the No Claim Bonus if you change the insurer on renewal. For availing it, a proof in the form of a renewal notice or a letter confirming the allowed percentage of NCB is required from the previous insurer.