The risk and benefits of purchasing long-term insurance coverage for two-wheelers

Two wheeler insurance

Having proper third-party insurance is mandatory for all vehicle owners to gain permission to drive on Indian roads. It is the best financial instrument that helps you bridge the unforeseen cost of repairing damages incurred by the insured vehicle. All the bike insurance plans cover third-party legal liabilities caused during the accident. You can get popular two-wheeler insurance plans from the most trusted insurance providers like Bajaj Allianz, Acko, etc. The majority of individuals are unaware of the many benefits of having a long-term two-wheeler insurance policy. 

Here are all the details about the risks and benefits of purchasing long-term insurance coverage for your two-wheeler. Read to know more!

Reasons you should consider purchasing long-term insurance coverage for two-wheelers:

Insuring a two-wheeler is an integral part of owning one. The date of policy renewal is important when you purchase two wheeler insurance, whether you purchase it offline or online. Often, it is difficult to remember the date and renew the insurance policy before the due date, because we tend to forget such important things during our hectic everyday lives. Driving without a valid two-wheeler insurance coverage is prohibited in the country and may result in legal consequences. It is also not a wise thing to do, especially given the threats that exist on Indian roadways. Following a Supreme Court order in September 2018, the IRDAI mandated that all new two-wheelers be issued with 5-year insurance cover. It should be noted that a 5-year policy is only required for two-wheeler third-party insurance policies. Third-party insurance is required for all automobiles under the Motor Vehicles Act of 1988.

Benefits of purchasing long-term insurance coverage for two-wheelers

The following are some of the benefits of buying long-term insurance coverage for two-wheelers:

1. Cheaper premiums

One of the most lucrative benefits of opting for a long-term two-wheeler insurance plan is cheaper and affordable premium cost. The policyholders can get crazy discounts on two-wheeler long-term bike insurance. Long-term insurance is offered at lower rates since they save you money on administrative expenditures.

2. Renewals of long-term two-wheeler insurance

It is far more convenient to renew a policy every two or three years rather than every year, specifically if one has a significant number of policies. When a two-wheeler third-party insurance policy expires, the policyholder must go through a long renewal procedure. If an accident occurs after the policyholder’s renewal date, the policyholder will be unable to file an insurance claim.

Furthermore, the insurer may require a vehicle inspection before renewing or issuing new insurance. If your insurance has lapsed for a long period of time, it may be tough to find an insurer willing to cover your vehicle. The probability of such situations is much reduced if you purchase long-term two-wheeler insurance.

3. Long-term two-wheeler third-party insurance premium rates

Premiums for two wheeler third party insurance online have been gradually growing over the years. Every year, IRDAI raises the price of third-party liability insurance by 20%. If you had to get long-term vehicle insurance, your premiums would not change for the first three years. So, it is prudent to opt for long-term bike insurance and fix the premium rate for three to five years. 

4. No claim bonus advantage

As proven by various insurance policies, long-term two-wheeler insurance plans have the edge over short-term policies when it comes to the no-claim bonus (NCB). An NCB is a reduction grant for the following year of the policy if the policy holder has not made any claims in the past year. Long-term two-wheeler insurance has higher no-claim bonus slabs than short-term two-wheeler policies.

The Difference between Regular and Long-Term Bike Insurance:

Although the services covered by both types of insurance policies are typically identical, there are a few differences that make long-term insurance a more practical choice:

  1. Coverage period: Long-term insurance can cover your bike for up to three years, but regular insurance only covers it for a year.
  1. Frequency of renewal: Regular insurance needs to be renew every year, whereas long-term policies need to be renew every three years.
  1. Premium hikes: There is no change in the premium for up to 3 years in the case of long term policies.
  1. Cancellation: In the event of a 1-year policy, there is no return if you have filed an insurance claim and subsequently decide to terminate your insurance. If you have long term insurance, you will get a proportionate refund depending on the remaining term.

You can get the well rewarding two-wheeler third-party insurance from the top insurance providers in India like Bajaj Allianz. Head to their official website to get a personalised quote today!

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