Buying a new bike insurance policy online can be a confusing subject and choosing the right two-wheeler insurance plan could be even more confusing. It involves many jargons and terms and conditions that can sometimes get very confusing. Read on to find out everything that you need to know about two-wheeler insurance plans and some key terms around the same.
There are largely two types of two-wheeler insurance plans -
Third party Insurance - It is mandate as per the Motor Vehicles Act of 1988 for every vehicle to have a third-party insurance. It makes it illegal to ride a two-wheeler without one. A two wheeler insurance third party policy covers the loss, injury, damage and other liability caused to a third-party vehicle or property resulting from your two-wheeler. It also covers personal injury or damage to the owner of the other vehicle involved in the mishap.
Comprehensive Insurance - A comprehensive insurance, as the name suggests, provides total coverage for your two-wheeler. It provides you with financial protection against any loss or damage against natural and man-made calamities like fire, earthquake, explosion, theft and many more. Having a comprehensive two wheeler insurance policy for your new bike insurance policy covers you against multiple risks.
What is an Add on cover? - Apart from the above basic types of insurance, you can also add extra services to your two-wheeler insurance policy. Some examples of these can be the replacement of flat tyres, fuel assistance, 24x7 spot assistance, towing facilities, etc. These services or add-ons can make your riding experience hassle-free and can help you save up on your unplanned expenses.
Understanding a No claim bonus (NCB) - A no claim bonus is a discount or reduction in premium, provided by insurance companies to policyholders who have not claimed for any damages during the policy period. Having a NCB at the time of your two wheeler insurance renewal reduces your premium and also motivates safer riding.
Long-term two-wheeler insurance plan - Along with the regular bike insurance, long-term plans are also available. A long-term two wheeler insurance can save you from premium hikes that occur due to inflation. This comes as a relief for policyholders as it offers protection against yearly change in hikes on premium rates due to inflation. Premium rates are fixed during the purchase of a long-term two-wheeler insurance policy. You can also avail a No claim bonus for the same, the renewal of which, occurs once in two or three years depending on the tenure of the policy. A regular insurance policy for a bike will not include the mentioned features.
The table below will give you a fair understanding of the difference between a long-term and regular two-wheeler insurance plan offered by Bajaj Allianz
|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|
There is plenty of information available over the internet to help you make a choice while buying new bike insurance policy online. Always ensure that you spend some time researching and reading the plans, premiums and services and keep those pointers in mind while making the right choice.
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