Owning a motor insurance is not an easy task. There are a lot of terms and conditions are associated with it and it is not also possible that everyone knows such terms and meaning of such terms. We here simplified the list of important vehicle insurance terms that you will be get noticed while buying or owning a vehicle insurance and you should know before claiming for an insurance.
Insured declared value [IDV]
IDV is the most common term used in the motor insurance. It gives the current market value of your vehicle. It shows the highest sum of the payable amount that can be given by the insurer. It is the maximum amount that you can claim for your total loss in an insurance company if your car gets damaged or stolen.
Own damage premium
Own damage premium is the premium which you pay to use the insurance cover which is equal to the IDV. It ensures the protection of your vehicle against the losses which are caused due to the events which are outside of your control. This includes natural calamities such as earthquakes, disasters etc and man-made calamities such as explosion and fires etc. But the ODP differs according to the geographical zones, models and cubic capacity etc of the car. So it is better to specifically ask about this premium.
Zero depreciation cover
In an accident when you claim for an insurance then the company usually deduct the amount for the replaced parts. By opting the zero depreciation cover the company cannot deduct the amount of the replaced parts which means higher claim amount.
No claim bonus
It is also the most commonly used vehicle insurance term. This is basically discount which you get when you did not make the claim in the previous year. But it is only applicable when you renewed your policy within the 90 days of the expiry.
Third party cover
Third party cover is frequently used in the insurance cover. This insurance protects the owner from the legal repercussions of any death or injuries of the third party and also pay the bills and expenses of the injury and damages of the third party.
Personal accident cover
Besides the vehicle damages, this insurance protects or cover the person financially when he or she get injured, causes death or any permanent disability due to the accident. There are a lot of people who died in the road accidents. It gives the daily expenses to their families.
There are many vehicle and trade insurance available, you can opt for the cheap traders insurance which gives you all the required benefits at an affordable cost.