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Motorcycle Insurance Glossary
ABI
Association of British Insurers - body which regulates the British insurance industry.
Accidental damage cover
Coverage which encompasses any damage to goods instead of theft or loss.
Act of God
An incident which occurs that is beyond typical foresight - for example an earthquake or a major storm. These events are described as an "act of God", potentially yielding a case in which liability cannot be ascribed because of the extraordinary circumstances that arose.
All risks
A comprehensive policy which covers all risks (disregarding specified exceptions)
Breakdown cover
A policy which includes the provision of repair and recovery services for stranded drivers.
Business use
A term used to specify the use of a bike for work purposes.
Certificate
This is the document that indicates the insurance policy is in effect, providing a contract between the policyholder and the insurance provider.
Claim
An approach made to the insurance company arising from a crash or other incident which may result in the insurer paying out.
Cover
This is the agreed area of risk "covered" by the insurance policy.
Effective date
When an insurance policy will begin.
Excess
The section of a claim settlement which must be paid by the policyholder.
Exclusions
Those incident deemed to be outside the insurer's provision of coverage.
High-risk occupation
Indicates where certain jobs might have a bearing on the risk involved - for example a motorcycle courier.
Insured
In all documents and info, the "insured" refers to the person who has taken out the motorcycle policy.
Market value
This is the estimated cost of the relative replacement of a model, taking into account its age, model and other characteristics, based on a "market value".
No Claims Bonus
A No Claims Bonus (NCB) is when the premiums are cut after a specified period when no claims have been made.
Optional extras
Additional extras on top of the basic motorcycle provision.
Replacement motorbike
When the company can arrange for a replacement bike from an approved list to enable travel while the policyholder's own bike is repaired.
Third Party Cover
Third Party Cover provides basic insurance cover for a third party and also covers the liability of the policy holder. This can include pillion passengers.
Third Party Fire and Theft
This third party policy includes damage to a bike as a result of the impact of fire, lightning, an explosion or attempted theft.
Typically the policy will either include the cost of repairs, a replacement or a cash sum equivalent to the cost incurred.
Voluntary excess
This is when policyholders agree with the insurer to pay more than the minimum excess - or compulsory excess.
Write-Off
When it is deemed pointless to spend money on repairs due to their cost or the bike is unrecoverable or inherently unsafe.
Bike Insurance News
08/02/12 - Triumph takes award for Motorcycle Live exhibition. Triumph is celebrating after being named the best exhibitor at Britain's leading motorcycle show.
08/02/12 - Yamaha extends low-finance offers. Yamaha has extended the range of motorcycles covered by its Street Wise finance promotion.
01/02/12 - David Robb leaves BMW post. The man responsible for transforming the BMW Motorrad motorcycle brand has left the company after 18 years.
