Long Term Vs Short Term Comprehensive Insurance for Two Wheeler
Jul 23, 2020

Comprehensive Insurance for Two Wheeler: Long or Short Term Policy?

Having a two wheeler insurance is not only a recommended measure but is also a must have as per law in India. If you are looking for a two wheeler insurance online, there are plenty of jargons and terms that you may come across. A majority of this are terms include comprehensive insurance for two wheelers, long term two wheeler insurance, third party insurance and so on. We have simplified this for you.

A comprehensive insurance for two wheelers is a type of insurance policy which not only covers third party losses but also the owner's loss. For example, if you are involved in an accident in which the other party's vehicle suffers damage, this is covered via third party insurance (also a mandate by the law). But in this scenario, the damages caused to your own vehicle will be covered by a comprehensive bike insurance that offers full coverage.

In general, comprehensive insurance for two wheelers is available on an annual basis. These have to be renewed year on year. But if you are someone who wants to avoid the hassle of repeated renewal process and also avail extra benefits by doing so, a long term two wheeler insurance is what you need!

A long term two wheeler insurance avoids the need for a yearly renewal. You can insure your bike once and stay insured for a longer time. In addition to this benefit, you can also avail some key advantages like-

  • Protection from Premium hikes - Avail a benefit from increase in third party insurance premium as the premium is capped at the time of purchase of a long term two wheeler insurance. This protects against premium fluctuations that may occur.
  • No claim benefit (NCB)-If you are a safe rider, you get to be eligible for a discount or reduction in premium on renewal for not claiming for any damages during the policy period. This is known as no claim benefit.
  • Longer coverage - Once you get insured for over a year, you avoid the hassle of repeated renewals and also minimize risk that may arise due to a lapse of renewal for your annual two wheeler insurance.

For a better understanding of the same, have a look at the table highlighting the differences between long term two wheeler and an annual comprehensive insurance for two wheelers along with benefits offered by Bajaj Allianz General Insurance Company

Features 3 years long term package policy 1 Year Package Policy
Renewal frequency Once in three years Every year
Coverage period Three years One year
Premium hikes No effect in the TP premium during the policy period Every year TP premium increases
NCB benefit Additional benefit at the time of renewal As per tariff
NCB benefit after a claim NCB gets reduced but does not become nil NCB become 0 after one claim
Mid-term cancellation refund Proportional refund provision even after claim during the policy period No refund in case of any claim

So while you compare bike insurance online, make sure you consider all the pros and cons before considering-full coverage for your bike.

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