Indians rely heavily on two-wheelers for transportation. Third-party 2-wheeler insurance coverage is required if you own a motorcycle or scooter. According to the National Crime Records Bureau (NCRB) statistics, India reported 1.2 lakh road accident fatalities in 2020, despite the Covid-19 lockdown. Moreover, half of the people who died in traffic accidents were two-wheeler drivers. Bajaj Allianz two-wheeler Insurance serves as a safety net, protecting you from financial ruin and legal liability in the event of an accident.
In the event of an accident or incident, a 2 wheeler insurance policy serves as a financial safety net to protect you from any financial losses or damages. The plan assists you in recouping with your financial losses, and might come as a result of any tragic incident. Similarly, if you are considering purchasing a two-wheeler insurance coverage online, you may be overwhelmed by many insurance options available in the market.
Long-term insurance plans and short-term insurance plans are the two types of insurance plans offered and can be differentiated as per tenor. However, being aware of the fundamental distinctions between the two types of policies can assist you in determining which insurance will best meet your requirements.
Unlike short-term two-wheeler insurance, which requires you to renew your coverage every year, long-term two-wheeler insurance covers five years or more. Both plans protect you against financial damage depending on the type of policy in a 2-wheeler insurance. Aside from this, there are many more changes that are quite significant. You can refer to the points given below:
1) Premium payment
The premium payment for long-term motorcycle insurance is once every three or five years, while the premium payment for short-term motorcycle insurance is once a year.
2) The expense of the premium
A long-term bike insurance plan is more cost-effective than a short-term bike insurance plan when compared to the latter. The policyholder is not compelled to pay an annual premium that may be adjusted by India’s Insurance Regulatory and Development Authority. Furthermore, Bajaj Allianz two-wheeler insurance firms provide policyholders with a reduction on premiums paid in connection with long-term bike insurance policies.
Buyers of two-wheeler insurance plans who want to save money on their premiums should consider purchasing a long-term policy.
3) The ability to be adaptable
One of the primary advantages of short-term motorcycle insurance is the ability to examine and adjust one’s insurance coverage on an annual basis while also taking advantage of different discounts and available special offers. Alternatively, numerous add-ons such as NCB protection, zero depreciation, and so on may be selected. By contrast with long-term insurance plans, short-term insurance plans provide more flexibility in an emergency.
4) No-Claim bonus benefits
Compared to a short-term insurance policy, long-term insurance coverage is supplied with a greater no claim bonus (NCB) discount. If there are no claims for the first year of the insurance, the discount might increase to as much as 20%.
5) A facility for riders
Short-term insurance plans have the advantage of allowing you to incorporate extra add-on choices with the main insurance policy, which is one of its primary benefits. Riders such as 0% depreciation, NCB protection, return to invoice, and others are available. As opposed to a long-term insurance plan, a short-term insurance policy allows for the addition of riders at the end of each policy year.
Add-ons provide additional advantages for an extra fee, and each one is designed to fulfill a certain function. When compared to long-term bike insurance plans, short-term bike insurance policies give you additional add-ons and the ability to make changes to these riders on an annual basis, depending on your requirements.
Having a Bajaj Allianz two-wheeler Insurance policy, in both long-term and short-term, each has its own set of perks. On the other hand, the selection of the most appropriate two-wheeler insurance plan depends on your individual needs. A long-term two-wheeler insurance plan is recommended if you look for cost-effectiveness and timeliness in your insurance coverage. A short-term 2-wheeler insurance plan is recommended if you are more concerned with alternatives’ exact protection and flexibility.
Longer-term insurance policies for two-wheelers provide greater financial protection than short-term policies. Furthermore, you escape the trouble of annual renewals, as well as the potential of forgetting to renew, among other things. Going without insurance for even a single day is a significant risk.
The insurance does not cover any accident or damage during this period. It is also against the law to ride without proper insurance coverage. As a result, a long-term strategy is preferred above a short-term plan when making financial decisions.