These insurance plans give you a range of benefits at competitive prices and also help you save money over time.

Long-Term Two-Wheeler Insurance Plans All you need to knowPixabay
Product Partner Monday, March 12, 2018 - 12:27

In recent times, two-wheelers have become the most preferred mode of transport for Indians. The affordability, design choices, and superior mileage that these vehicles offer have made them a front-runner in the auto industry. In order to completely secure this dream vehicle of yours, it is necessary to purchase a two-wheeler insurance policy. While the Motor Vehicles Act has made it mandatory for every vehicle owner to purchase at least a third-party liability insurance cover for their vehicle, it is advisable to splurge a little extra on a comprehensive insurance policy or a long-term two-wheeler insurance plan, if feasible.

While regular comprehensive insurance plans are annually renewable, a long-term two-wheeler insurance policy will provide your vehicle a comprehensive cover for a period of 2 or 3 years, as per your choice, thus guaranteeing you complete peace of mind during this time. 

What does a long-term two-wheeler insurance policy cover?

1. Personal accident cover: Long-term two-wheeler insurance plans provide a personal accident cover to the owner-rider of the vehicle, up to a certain pre-specified amount. Thus, if the rider meets with an accident, the policy can provide him/her a cover against resulting hospitalisation expenses. In this way, your two-wheeler insurance plan can act as a supplement to your health or medical insurance plan.

2. Vehicular damage due to man-made and natural calamities: Long-term two-wheeler insurance plans cover more than just damage caused due to accidents. In fact, these policies come with an own-damage cover that covers damages caused to your vehicle due to natural calamities like fires, explosions, earthquakes, floods, hurricanes, etc. Further, these policies also cover theft of the vehicle, damages caused due to riots and strikes, etc.

3. Third-Party Liability: All motor insurance policies provide a third-party liability-only cover to the policy buyer. Thus, in the event of an accident, your third-party liability insurance will provide you a cover against legal liabilities, hospitalisation expenses incurred by a third-party due to accidental injuries, and damage caused to their property/assets/vehicle, as well.

Benefits of purchasing a long-term two-wheeler insurance policy

1. Minimise non-renewal risks: Since you can opt for a policy tenure of up to 3 years when you purchase a long-term two-wheeler insurance plan, you can greatly reduce the risks associated with a policy lapse or termination. Thus, unlike annually renewable insurance policies, you don’t have to go through the hassles of renewing your policy every year, with this type of an insurance cover.

2. Option to purchase riders/add-ons: In most cases, the cover that is provided by a base insurance policy is fixed and cannot be customised to your liking. Thus, all insurers, including life insurance policy providers and general insurance companies, offer riders and add-ons that customers can purchase for a nominal amount and link to their base insurance policy. These riders will give you a more enhanced protection and will help you avail more benefits. When you purchase a long-term two-wheeler insurance plan, you can also opt to purchase riders like the 24x7 Spot Assistance Cover, Zero Depreciation Cover, Personal Accident Cover for the pillion rider, etc.

3. Third-party premium stays constant: The premium amount that you pay for a long-term two-wheeler insurance plan is the sum total of the own damage premium, third-party liability insurance premium, and the personal accident cover premium. While the third-party liability premium usually increases on a yearly basis in the case of annual policies, they stay fixed for the duration of your policy tenure when you purchase a long-term two-wheeler insurance plan. Thus, you can save a significant amount of money when you opt for a long policy tenure. Also, many insurers provide a discount to policy buyers who opt for a two or three-year policy tenure, thus helping you save more in terms of the premium.

4. Enhanced No-Claim Bonus: As a reward for driving safe the entire year, motor insurance providers offer a no-claim bonus to customers, for both two-wheeler and car insurance policies. Thus, with a long-term two-wheeler insurance plan, you become eligible to receive a significant no-claim bonus for every claim-free year. Further, in most cases, unlike in the case of annually renewable two-wheeler insurance plans, you no-claim bonus does not become void if you happen to make a claim during the policy tenure.

5. Hassle-free online renewal: Before the completion of your two or three-year policy tenure, you have the option of renewing your policy online, through the insurer’s website or a trusted third-party insurance website, in a hassle-free manner by simply keying-in a few details and paying the premium amount. Several insurance companies also give you the option of renewing your insurance policy online with no vehicle inspection, even if the policy has expired.

The Bottom Line

If you own a two-wheeler and are planning to use it for at least a few years, it is highly recommended that you invest in a long-term two-wheeler insurance policy. These insurance plans give you a range of benefits at competitive prices and also help you save money over time, all insurance plans can be found in bankbazaar India.

Given the multitude of choices you might have when purchasing an insurance policy for your two-wheeler, it is recommended that you compare all insurance plans and coverage types that are offered to you carefully. Further, make sure to assess your usage of the vehicle, your needs, the coverage you require, and the benefits and features of various insurance plans in order to select a plan that is best suited to you.

This article has been produced by TNM Marquee in association with BankBazaar.