What is the Difference Between Short-term and Long-term Two-wheeler Insurance Plans?
- Author :
- TATA AIG Team
- ●
- Last Updated On :
- 11/08/2023
Bike insurance is an agreement between the insurance company and the bike insurance owner in which the insurance company agrees to compensate the losses or damage to the bike or any third party claims in return for a considerable amount known as premium. Bike insurance policy has two sections namely: Own damage bike insurance which covers the loss or damage to the bike due to any unforeseen circumstances, Third party bike insurance covers the bodily injury to third parties or property damage of third parties involving the insured bike.
Best insurance for bike can be found on the online portal Tata AIG which offers comprehensive bike insurance protection for your bike. Two wheeler insurance is mandatory in India as per the Motor vehicles act, 1938 which states that every two wheeler plying in public places should have at least a third party bike insurance policy without which the rider/owner would be punished with fine or imprisonment.
Difference Between the Short-term and Long-term Bike Insurance
| Short-term bike insurance | Long-term bike insurance | |
|---|---|---|
| Definition | A short-term insurance policy for bike covers the loss or damages to the bike insured for a short period of time. | A long term two-wheeler insurance covers the loss or damages to your bike for a long period of time. |
| Policy period | Short-term bike insurance policies are given for a period of 1 year. | Long term insurance for bike is usually given for a period of 2 or 3 years. |
| Premium Payment | The premium is paid only for 1 year in short term insurance for bike policies. | The premium is paid for 2 or 3 years one time in case of long term two wheeler insurance. One time premium payment makes the long term bike insurance attractive and comfortable. |
| Renewal | The short-term bike insurance policy has to be renewed after 1 year after paying the renewal premium. Renew your two-wheeler insurance policy. | The long term two-wheeler insurance policy has to be renewed after 2 or 3 years of the policy period. Click to renew your long-term two-wheeler insurance policy. |
| No Claim Bonus | No claim bonus for short term bike insurance is calculated at the time of renewal i.e., after 1 year and for each claim free year the No claim bonus will be increased to the next slab. | No claim bonus for long term two-wheeler insurance is calculated at the end of the policy period I.e.,2 or 3 years at the time of renewing the policy. |
| Personal Accident cover for Owner/Driver | Personal accident policy in case of short-term insurance policy is given for a period of 1 year which covers the accidental death or disability of the owner/rider while driving the two-wheeler. | Personal accident policy in case of long-term two-wheeler insurance is given for a period of 2 or 3 years which covers the accidental death or disability of the owner/rider while driving the two-wheeler. |
| Increase in third party premium | The third-party premium, if and when increased, has to be paid at the time of renewal in case of a short-term insurance policy for a bike. | Since the policy is taken for a long term, the increase in third party premium would not need to be paid by the customer during the policy period. This advantage of saving the premium is available in long term two-wheeler insurance policies. |
Things to Consider Before Deciding on Short-term or Long-term two-wheeler insurance:
Here are certain things which are to be considered before taking bike insurance online:
Affordability
Long term two-wheeler insurance policies are generally given for a period of 2 or 3 years which means that the customer has to pay money for 2 or 3 years at a single time. For instance, if the short-term insurance policy costs ₹800, the long-term two-wheeler insurance policy costs ₹1800 - ₹2000 for 3 years, which means the customer has to be affordable to pay the higher premium at a single time.
There is an advantage of saving the third-party premium, which might increase every year in the case of long-term two-wheeler insurance policies. Also, as seen in the prices above, there is some discount given for long-term policies. Higher the policy term, higher would be the discount from Tata AIG.
Hassle free renewal
In the case of long-term two-wheeler insurance policies, the renewal would be necessary after 2 or 3 years, thereby avoiding the situation of forgetting to renew your bike insurance. The renewal is made easy with online insurance for two-wheeler from Tata AIG as the renewal can be done in 3 easy steps by entering the basic data such as vehicle number, after which the system will fetch the details of registration, and the customer needs to enter the insurance expiry details, and in the next step, the premium would be displayed.
Trustworthiness
It is very much important to think twice or thrice before spending your money online as it has become very easy for spamsters to cheat you online with attractive offers on bike insurance online renewal.
Tata AIG is a reputed brand in India catering the services to all classes of customers; therefore, it is very important for the customers to select the trustworthy brand while purchasing the long two-wheeler insurance policy online.
Frequently Searched Queries Online Regarding Bike Insurance
What is long term two-wheeler insurance?
Long-term two-wheeler insurance is an agreement between the insured customer and the insurance company for a period of 2 or 3 years in which the insurance company promises to settle the loss or damages due to unforeseen circumstances in return for a considerable premium which is paid one time at the time of taking the policy. In simple words, long-term two-wheeler insurance is given for a long-term period of 2 or 3 years.
What is the period of two-wheeler insurance?
Two-wheeler insurance can be given for a period of 1 year which is known as a short-term insurance policy, as well as for a period of 2 or 3 years which is known as long-term two-wheeler insurance. After the designated period, the two-wheeler insurance policy has to be renewed; failing to do so will result in a fine or imprisonment.
Which insurance is compulsory for 2-wheeler?
As per the Motor vehicles act, valid third-party insurance is compulsory for any 2-wheeler to ply in public places without which you may be fined or imprisoned. Third-party bike insurance online covers the bodily injury or property damage to third parties due to an accident with the insured bike.
Disclaimer / TnC
Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.
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