Understanding bike insurance jargons & Essential Addons

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bike insurance jargon & bike insurance addons in India
13 November 2023

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Learn about bike insurance jargons and find must have bike insurance addons for your ride in India. Stay informed and ride confidently.

What is bike insurance jargons and its importance in bike insurance in India?

Bike insurance jargons are specialized terms and phrases used in the insurance industry, particularly when handling motorcycle insurance policies. These terms may need clarification for those unfamiliar with insurance terminology.

But the surprising fact is that 99% of people need to learn the basic bike insurance jargons. They will only come to know the terms when they get involved in an accident or other issues. Also, they are cheated or duped by the insurance agents as these people have limited knowledge.

List of all bike insurance jargons

Third-Party Liability Insurance

Third-Party Liability Insurance is the fundamental and obligatory insurance coverage for all vehicles in India. It protects against any harm or injury caused to individuals or property by your bike.

Own Damage (OD) Insurance

OD Insurance is optional and safeguards your bike from accidents, theft, fire, natural disasters, and other specified perils.

Comprehensive Insurance

Comprehensive insurance covers third-party liabilities and damage to your bike, combining third-party liability and own damage insurance.

No Claim Bonus (NCB)

NCB is a discount on your insurance premium if you have yet to make any claims in the previous policy year. It promotes safe riding and can decrease your insurance costs significantly.


The amount you pay the insurance company for your policy coverage.


You must agree to pay a certain amount in the event of a claim before the insurance company covers the rest of the expenses. Opting for higher deductibles can reduce your premium.

List of all Bike Insurance Jargons
List of all Bike Insurance Jargons

IDV (Insured Declared Value)

The IDV (Insured Declared Value) is the highest amount the insurance company will pay if your bike is stolen or completely lost. Your bike’s market value and age are the main factors affecting the IDV.


The person who holds the bike insurance policy is responsible for paying the premium.


You can add or remove coverage, update personal information, or modify vehicle details to change your insurance policy.

Premium Loading

An additional premium is charged if the insurance company perceives higher risk due to factors like a modified bike or an inexperienced rider.


The insurance policy does not cover these specific situations or conditions. It is understanding what needs to be covered to avoid surprises when making a claim.

Zero Depreciation Cover

An addon cover that ensures you receive the total claim amount without accounting for depreciation of bike parts during a claim.

No-Fault Insurance

Specific policies cover accidents where no one is at fault. In these cases, both parties involved in the accident can make claims from their respective insurance policies without assigning blame.

Policy Period

The duration of the insurance policy is valid, typically one year.


An optional addon to the base policy that provides extra coverage for specific situations, such as a personal accident or pillion rider cover.

Proof of loss

Submit a formal documentation or statement called proof of loss to the insurance company to provide evidence of your claim. This is a crucial part of the claims process as it helps the insurer evaluate the validity and extent of your claim.

Break-in insurance

Renew your bike insurance annually to keep enjoying its benefits. If you miss the due date, your policy will have a break. When you renew a lapsed policy, the time between the due date and the renewal date is called the break-in period in bike insurance.

What are bike insurance addons and their importance in bike insurance?

In bike insurance, an addon is an extra coverage option you can buy with your standard policy to customize your coverage according to your specific needs and preferences. It’s also known as a rider or endorsement.

Bike insurance addons offer additional protection and benefits beyond the basic coverage provided by the standard policy. You’ll have to pay extra for these addons, which will be added to your base premium. 99% of customers need to learn what bike insurance addons their respective insurance companies provide and think it is an additional burden.

List of all bike insurance addons in India

Personal Accident Cover for the Owner-Rider

This provides coverage for accidental injury or death of the policyholder (the bike owner) while riding the insured motorcycle.

Pillion Rider Cover

This extends personal accident coverage to the bike’s pillion rider(s).

Zero Depreciation Cover

Also known as “Zero Dep Cover,” this addon eliminates the depreciation deduction from the claim amount for certain parts during repairs or replacements.

Engine Protection Cover

It covers damage to the bike’s engine and parts, which may not be covered under the standard policy.

List of all Bike Insurance addons
List of all Bike Insurance addons

Roadside Assistance

This service offers assistance in case of breakdowns, flat tires, fuel shortages, or other emergencies while on the road.

Consumables Cover

It covers the cost of consumable items like nuts, bolts, engine oil, and more that may need replacement due to an accident.

Return to Invoice (RTI) Cover

In the event of a total loss (e.g., theft or severe damage), this addon pays the difference between the insured declared value (IDV) and the invoice value of the bike.

Key Replacement Cover

It covers the cost of replacing lost or stolen keys, including crucial programming and rekeying the bike’s locks.

NCB Protection

This addon ensures you keep your accumulated No Claim Bonus (NCB) even if you claim during the policy period.

Accessories Cover

It covers additional accessories or modifications not included in the standard policy, such as customized seats, helmets, or exhaust systems.

Daily Allowance Benefit

In case of a claim-related repair that takes time, this addon provides a daily allowance to cover the cost of alternative transportation while your bike is undergoing repairs.

Roadside Assistance cover

provides specific emergency assistance in situations such as towing, fuel filling, battery jump-starting, fixing a flat tire, and more.

FAQ about bike insurance jargons and addons

What is the grace period for bike insurance?

A grace period is the extra time policyholders are given to renew their insurance policy after it has expired. During this period, the insurance coverage stays active, giving the policyholder a limited opportunity to make the premium payment and renew the policy without any interruption in coverage.

What is a consequential loss in bike insurance in India?

Consequential loss, also called “consequential damage,” in bike insurance, means the indirect or secondary losses or damages due to an incident or accident involving your insured motorcycle. These losses are not the immediate or direct outcome of the accident but rather the consequences or effects of it. Standard bike insurance policies in India do not include consequential losses addons.

What is a cashless claim in motorcycle insurance?

In a cashless claim, your bike can be repaired at a garage or service centre affiliated with your insurance company. The garage will directly communicate with the insurance company to settle the claim, so you don’t have to pay for the repairs upfront.

The insurance company will cover the cost of repairs up to the policy’s coverage limit, taking into account deductibles and depreciation. However, according to the policy terms, you may still be responsible for paying any applicable deductibles, depreciation, or non-covered expenses. Using a garage that is part of the insurance company’s network is essential for a cashless claim.

What is a reimbursement claim in motorcycle insurance?

In a reimbursement claim, you must pay for the bike repairs or expenses upfront using your funds. Once the repairs are done, you must gather all the necessary invoices, bills, and receipts for the repairs and expenses. These documents and a claim form should be submitted to your insurance company.

The insurance company will review your claim and determine if the expenses are covered under your policy. If approved, they will reimburse you for the eligible expenses by sending you a check or depositing the amount directly into your bank account. You can choose a repair shop or garage with reimbursement claims, as you are not limited to network garages.

What are the benefits of taking a Return To Invoice (RTI) addon?

  1. Suppose your bike is stolen or damaged beyond repair. In that case, the RTI addon guarantees you will receive the full invoice or original bike purchase price, including taxes and registration fees.
  2. Unlike standard insurance policies, the RTI addon does not factor in depreciation when settling a claim for a total loss. This means you will receive the bike’s full invoice value without any deduction for wear and tear.
  3. The RTI coverage bridges the gap between the bike’s market value and the actual purchase price, ensuring you won’t suffer a financial loss in the event of a total loss. This lets you easily replace your stolen or irreparably damaged motorcycle with a new one of the same make and model, quickly getting you back on the road.
  4. The RTI addon is particularly valuable in motorcycle theft cases, as it prevents you from bearing the cost of the stolen bike.

List some examples of consequential loss in bike insurance?

  1. Consequential losses occur when you cannot use your bike due to an accident, resulting in a loss of income. This includes using alternative transportation methods like taxis or rental vehicles, which can be costly.
  2. Medical expenses unrelated to the accident may also be considered consequential losses. Towing and storage charges for your bike are also included.
  3. If your bike is unavailable for an extended period, you may incur additional expenses related to commuting or transportation. Renting a replacement vehicle is also a consequential loss.
  4. Travel expenses incurred while waiting for your bike to be repaired far from home are also considered consequential losses.

Is there a difference between insurer and insured in two-wheeler insurance?

The insurance company or organization provides the insurance policy to the policyholder (the insured). The insured (such as a bike owner) purchases and holds the insurance policy from the insurer. Another term for insured is the policyholder.


Throughout this article, We have discussed different bike insurance jargon, addons, and related FAQs.

Here are some topics related to bike insurance in India that you can find on our website

  1. How To Buy And Select Two Wheeler Insurance In India
  2. Tips to reduce your bike insurance premium in India

If you have any other doubts or queries, email us at bikeleague2017@gmail.com. We are always eager to help and assist you. Also, here are several social media platforms of Bikeleague India to raise your suspicions.

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