When you drive a two-wheeler in India, you need to know that it’s a must to have a two wheeler insurance policy as that’s mandated by the Motor Vehicle Act, 1988. Yes, the possession of a two-wheeler in India also demands a two wheeler insurance as it’s a recommended aspect and regulated by law.
If you have just bought a two-wheeler and is looking to apply for a two wheeler insurance online or offline, you can come across plenty of terms and jargons. A majority of these terms may be comprehensive, third party insurance, long-term insurance. Let’s simplify these terms for you all.
What is a comprehensive two wheeler insurance policy?
A comprehensive two wheeler insurance policy is a kind of insurance scheme which has the provision to not only cover losses to the third party but even the losses of owners.
Example – If you are involved in an accident in which you injure a third party, his/her policy and even get injured, then the comprehensive two wheeler insurance policy will provide financial and legal aid to all concerned. The damage of the third party vehicles will be covered by the third party insurance two wheeler policy and damage done to your own vehicle will be covered by the comprehensive two wheeler insurance policy.
The comprehensive two wheeler insurance policy is available on a yearly basis which you can renew.
However, if you don’t want to face the hurdles of renewing the policy every year or if you think you can forget renewing on time, you have another option.
To avoid the risk of the cost of a potential damage, you can opt for a long-term two wheeler insurance.
What is a long-term two wheeler insurance policy?
A long-term two wheeler insurance policy lets you avoid the need for an annual renewal. As a result, you can easily ensure your two-wheeler for a longer period and avoid the hassles of the yearly renewal and also avail some benefits such as:
Protection from the premium increase
When you avail a long-term two wheeler insurance policy, you can easily avail an advantage in the form of keeping off the increase in the premium of third party insurance. It happens as the premium gets capped at the time of purchasing a long-term two wheeler insurance policy and protects against premium fluctuations in future.
No claim benefit (NBC)
If you are a responsible rider, you also become eligible for a reduction or discount in premium on renewal for not asking for any damages during the period of the policy. The phenomenon is referred to as no claim benefit.
Once you get the long-term two wheeler insurance policy for a period of more than 1 year, you also avoid the hazards of ongoing renewals. What’s more, it also reduces the risk that may arise due to the renewal’s lapse for the yearly bike insurance.
The Bottom Line
You are now aware of the benefits and features of the long-term two wheeler insurance policy above and over a comprehensive two wheeler insurance policy.
You should either opt for the long-term two wheeler insurance policy or a comprehensive two wheeler insurance policy as per your needs and work routine.
There are many long-term third party two wheeler insurance policies online that you can compare and pick up as per your needs and affordability. All the best!