Motorcycle Insurance Glossary

Commonly Used Terms

Third Party Cover only
This is basic insurance cover and covers your liability for death or bodily injury to a third party including other pillion passengers and your liability for damage to third party property.

Third Party Fire and Theft Cover
This covers third party risks as described in 1 above plus covers your motorcycle if stolen, subject policy terms.

Comprehensive Cover
This includes the cover described in 1 and 2 above, as well as loss of or damage to your motorcycle caused by accidental or malicious damage.

Details of policy cover. What you are covered for and what you are not. Any changes in the terms of the policy (endorsements) will be shown in the schedule.

Insurance Premium Tax. Compulsory tax levied by the government on all insurance premiums

Even when you are insured, if you have an accident you may have to pay some of the claim. The amount of excess you are liable for is outlined in your schedule. This is the first part of each and every claim, which you (not your insurer) must pay. There are two types of excess:

Compulsory excess – This is excess that has been applied as a requirement by your insurer and will vary according to your personal circumstances and the terms of cover provided. Compulsory excess will also apply to fire or theft claims.

Voluntary excess – This will apply where you agree with your insurer to pay a greater part of each claim than the compulsory excess.

Social, Domestic and Pleasure Use Including Commuting
This includes commuting to and from one place of work. ‘Excluding commuting’ means your motorcycle can be used for social, domestic and pleasure purposes only.

Business Use
This is when the policyholder uses their motorcycle for their own business to travel to more than one place of work and between places of work.