Explore the Advantages of Long-term Two-Wheeler Insurance
Two-wheelers are such a common mode of transportation these days, that everyone has at least one two-wheelers. And when it’s a vehicle, there’s always this risk of loss due to accidents, thefts, or man-made disasters. It must be obvious from the title of the topic we are going to cover in today’s blog. Yes, it’s about long-term two-wheeler insurance. To give an overview, two-wheeler insurance gives financial protection to insured vehicles from threats like accidents, thefts, or other issues. Plus, third-party bike insurance is made compulsory for all types of two-wheelers, by the government via the Motor Vehicle Act 1988. So here’s everything you need to know about two-wheeler insurance, before getting one. This guide explains everything you need to know about two-wheeler insurance policies in India. Let’s start with defining two-wheeler insurance.
About Long-term Two-Wheeler Insurance
Unlike typical one-year policies, the two-wheeler insurance policy is made to protect your vehicle against unforeseen circumstances for a maximum of five years. Moreover, for a brand-new bike, the insurance plan gives 5 years of coverage, and for old bikes( more than 5 years old), the insurance policy gives coverage of up to 3 years. So, whether it is a minor damage or a huge loss, the long-term bike insurance policy will cover all your claims against third-party liabilities, or any damages to your two-wheeler.
Types of Long-Term Two-Wheeler Insurance
After discussing the basics, let us take a closer look at some important points about two wheeler bike insurance in India. There are two main coverage options available in long-term policies, just like with regular policies:
Third-Party Liability Only: This is mandatory by law, as per the Motor Vehicle Act 1988. This insurance pays for any harm you cause to another person’s car, property, or person in an accident for which you are at fault.
Comprehensive Coverage: This provides more comprehensive protection, covering not only third-party liability but also damage or theft of your two-wheeler. You can further customize your comprehensive policy with add-on covers like:
Zero Depreciation: Protects you from depreciation deductions on your vehicle’s value during claim settlement.
Personal Accident Cover: Provides financial assistance in case of injury or death due to an accident. Engine and Gearbox Protection: Covers specific repairs to these crucial components.
Comprehensive And Third-party Liability Insurance Comparison
| Comprehensive Bike Insurance | Third-party Bike Insurance |
| Covers losses caused by the bike and third party. It includes any loss due to theft, fire, or man-made disasters. The premium amount is usually on the higher side, as it provides comprehensive coverage. Extends the motor insurance policy with add-on coverage like engine protection, roadside assistance, and zero depreciation. | Covers any loss that occurred due to damage to third-party property. The premium amount is lower compared to the comprehensive one. Provides add-on coverage for personal accidents. |
So, you have the option of choosing long-term two-wheeler insurance in both the comprehensive and third-party insurance plans.
Important Features of a Long-term Two-Wheeler Insurance Policy
Some of the important features of a long-term two-wheeler insurance policy are:
- The policy tenure of three to five years is the most common option.
- Similar to standard policies, you can choose between third-party liability only (mandatory) and comprehensive coverage (including damage to your vehicle).
- Policy renewal frequency, once in every 3 or 5 year
- No premium increases for three years for bike insurance
More Reasons to Buy Long-term Two-Wheeler Insurance?
So, the pros of having long-term two-wheeler insurance are Convenience: No need to hassle with yearly renewals. Potentially Lower Cost: Premiums may be discounted compared to buying one-year policies consecutively. This is so that you are protected from any future premium increases since the premium is set for the duration of the policy. No Claim Bonus Benefits: Compared to typical one-year policies, some insurers offer longer-term policies with better No Claim Bonus (NCB) discounts. NCB is a discount you receive on your premium for every claim-free year. Assured Coverage: Peace of mind knowing your two-wheeler is protected for a longer period.
To Sum Up,
Long-term two-wheeler insurance offers a convenient and potentially cost-effective way to protect your motorcycle or scooter. However, while purchasing two-wheeler insurance, consider your two-wheeler’s value, riding habits, and risk tolerance when selecting coverage. This is because, a brand-new motorcycle might benefit more from comprehensive coverage with add-ons, while an older scooter might be well-served by third parties only in a long-term policy.Nevertheless, if you have more queries regarding two-wheeler insurance, reach out to our team, and they will guide you through all the points.
FAQs
The two-wheeler insurance is a policy that provides coverage for your motorcycle or scooter for an extended duration, typically spanning multiple years, such as three or five years. It’s very convenient compared to others as it eliminates the need for annual renewals and also allows cost savings compared to renewing annually.
So, the two wheeler bike insurance primarily differs from regular insurance on the basis of the duration of their coverage and the frequency of renewals. So, regular insurance offers coverage for only one year, while long-term insurance offers coverage for multiple years, like three to five years.
Opting for two-wheeler insurance offers benefits like:
- Convenience
- Continuous coverage
- Long-term savings
- Protection against premium hikes
The bike insurance gives coverage for several risks, such as accidental damages, theft, or third-party liabilities, for an extended duration.
A long-term bike insurance policy provides coverage for multiple years, mostly, three to five years.
