All About IDV And NCB In Two-Wheeler Insurance
Updated On Sep 01, 2021
Read this article to find out everything you need to know about Insured Declared Value of your bike and No Claim Bonus of your bike insurance.
Table of Contents
- What Is The IDV of Your Two Wheeler?
- What Are The Factors Act As Determinants of The IDV?
- What Is No Claim Bonus In Bike Insurance?
- What Are The Benefits of No Claim Bonus?
- Take Away
Purchasing a bike can be costly. As a result, you must obtain comprehensive bike insurance to protect yourself from the financial implications of any accidents or repairs. When purchasing your policy, it is vital that you purchase an affordable comprehensive cover. Your two wheeler's IDV (Insured Declared Value) is a major component in determining the cost of your car insurance premium. To have an affordable bike insurance policy, it is very important to pay attention to your No Claim Bonus. In this article, you can read about everything you need to know about your two wheeler's IDV and NCB to make the right decisions related to your bike insurance.
What Is The IDV of Your Two Wheeler?
The abbreviation "Insured Declared Value" (IDV) stands for "Insured Declared Value." It's nothing more than the current market worth of your two wheeler. Your bike is subjected to regular wear and tear from the minute it leaves the dealership. Depreciation is the term used to describe how your bike's market value is affected by wear and tear. To determine the two wheeler's worth, depreciation is subtracted from the selling price.
If your bike's IDV is low, your car insurance premium will be low, and your claim amount will be modest as well. Insurance companies use a number of factors to determine IDV, including the bike's purchase date and model, accessories, and the number of times it has been serviced, among others.
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What Are The Factors Act As Determinants of The IDV?
The following are some of the criteria that go into calculating your IDV for your two wheeler-
The Bike's Age
Because of depreciation, the IDV of a motorcycle decreases as it becomes older. This is because the IDV will be reduced due to the depreciated value of the bike's auto parts.
The Two-Make Wheeler's and Model
The IDV is heavily influenced by the bike's make and type, as well as the cost of maintenance and repairs. As a result, buying a high-end bike will result in a bigger premium than owning a low-cost bike.
The Registration City
A bike registered and operating in a city poses a greater risk and has a lower IDV than a bike operating in a suburb. This is primarily due to the increased risk of collision or theft when riding a bike in a city.
What Is No Claim Bonus In Bike Insurance?
Everyone wants a bike insurance policy that provides the most coverage for the least amount of money. The no-claim bonus is one of the most substantial discounts on your bike insurance premium. It is offered by the insurance company for every claim free year of the policyholder. This discount is referred to as the No Claim Bonus (NCB). Bike owners who have complete coverage will already pay a higher price. The higher the IDV of the vehicle, the higher the insurance premium.
What Are The Benefits of No Claim Bonus?
The following are some of the reasons why the no-claim bonus is so important-
NCB takes a step-by-step strategy. This means that if you go a year without filing a claim, you'll get a discount on your bike insurance when you renew your coverage.
If you follow the terms and conditions and do not file a claim for five years in a row, you will receive a significant discount on renewing your policy. You will be able to save money that would have been spent on your bike insurance premium otherwise.
NCB Is Transferable
The best thing about the no-claim bonus is that it is tied to the bike's owner rather than the bike. The NCB component of your policy will follow you from one insurance provider to the next if you want to sell your insured bike and buy a new one. As a result, no-claim bonuses are especially useful for reducing the cost of your new bike insurance plan.
Having a bike insurance policy is highly beneficial. Insurance components such as IDV and NCB are important factors that determine your claim amount as well as the premium you pay. So make sure you pay attention to these determinants while purchasing, renewing and claiming your bike insurance policy.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.