Here Are Some Motor Insurance Terms You Must Know

One of the most frequent problems customers encounter when purchasing bajaj motor insurance is their inability to comprehend the coverage provided by the plan. The difficulties are only made worse by the policy documentation’s use of complicated legalese and jargon.

In order to make the process of purchasing a policy simple for you, we’ve attempted to define some of the terminologies that are frequently used in vehicle insurance papers.

  • Third-party liability: Your vehicle insurance policy’s third-party liability coverage is what pays out benefits to a third party in the event of an accident-related injury, fatality, or property damage. There is a ceiling of Rs. 7.5 lakh on the coverage provided for third-party property damage, despite the insurance cover for third-party injuries or passing away being unlimited. *
  • Own damage (OD) coverage: This section of the motor insurance policy guards against damage to the car resulting from collisions, fire, theft, natural disasters, and man-made catastrophes. Liabilities for third-party injuries, passing away, or property damage are not covered by this portion of the bajaj motor insurance plan. Therefore, the insurance provider will be responsible for paying the costs of damage repair if, for example, an accident involving your car results in damage to the vehicle itself. *
  • Legal liability – You are legally responsible for covering any damages incurred by a third party as a result of an accident involving your insured vehicle. If your car has car insurance, the third-party liability coverage provided by the insurance will satisfy the mandate to compensate the victims. *
  • Comprehensive policy – A comprehensive plan is an all-inclusive protection against a variety of incidents for both the insured vehicle and the owner. *

The following are covered by such a plan:

  • Fire, Lightning, Explosion, And Self-Ignition
  • Theft, Burglary, And Home Invasion
  • Riots Or Strikes
  • Earthquakes
  • Flood, Cyclone, Inundation, Typhoon, Hurricane, Hailstorm, Storm, And Frost
  • External Mishaps
  • Nefarious Actions
  • Acts Of Terrorism
  • Damage To The Insured Car When It’s Being Transported By Rail, Road, Inland Waterways, Elevator, Helicopter, Or Other Means
  • Both Landslides And Rock Slides
  • Liabilities to a third party in the event of an accident, including fatalities, injuries, and property damage
  • IDV – A vehicle’s Insured Declared Value (IDV) is essentially the amount covered by bajaj allianz motor insurance. It is the same as the car’s manufacturer recommended retail price, with normal ageing-related depreciation. At the start of the policy, a price for the car is agreed upon. These will need to be insured separately if the vehicle is later modified with new equipment that the manufacturer did not provide. *


  • Voluntary deductibles – When purchasing an automobile insurance policy, you have the option of paying a portion of all claim settlements yourself. This facility is comparable to a health insurance co-pay. Voluntary excess or deductibles refer to the sum that you consent to pay. *


  • No Claim Bonus (NCB) – The policyholder receives the No Claim Bonus when their auto insurance is renewed. Only customers who refrain from filing their own damage claims within an insurance year are eligible for this perk. Effectively, your personal damage premium will be lowered in half if you haven’t filed any claims for five years in a row. Make sure you follow the right process for bajaj allianz motor insurance renewal. *
  • Cashless garage – Today, car insurance firms have affiliations with garages all around the nation where customers can use a cashless claim settlement service. Network garages are the name given to these service centres. If a policyholder is involved in an accident while driving an insured vehicle, they can get the vehicle fixed at a network garage to simplify the claim process. In this instance, the insurance pays the network garage directly for the repairs. *


* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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