The premium we pay under two-wheeler insurance is based on the cubic capacity, mileage, riders, expected use of the vehicle, and Insurance Declared Value (IDV). IDV is the maximum amount that an insurer pays at the time of a claim. However, as per the general principle of insurance, the purpose of insurance is to make good the loss and not to give the insured any benefit out of the arrangement. Therefore, your insurance contract will only cover the actual loss caused to you. There are two types of policies under two-wheeler insurance – Comprehensive Policy and Third Party Insurance.

The comprehensive policy protects against the burglary and damage caused to the vehicle due to fire, riot, natural calamity, etc. and also covers accidental loss to the insurer. While third party policy only takes care of losses caused due to accidents, it does not cover loss or damage caused to your own vehicle.

So, coverage and IDV of any insurance contract is decided at the inception of your contract and all these details shall be mentioned on your insurance cover. To know the coverage details you have to check your insurance document, in that you will find the type of policy and accordingly the coverage.

Also, some insurers settle claims based on the premium paid for a certain period, and only after that your policy comes into effect, you need to check for the same in your insurance document as well. If you have taken online insurance the details shall be easily available to you but if you have taken offline insurance along with your vehicle you must have received some documents from the agency from which you have purchased your vehicle.