With the increasing number of two-wheelers on Indian roads, the number of uninsured two-wheelers has also increased significantly. A common reason for a lot of owners for not renewing their two-wheeler insurance is the hassles associated with the process. To make things easier, the IRDAI has introduced long-term two wheeler insurance.
As per a report from GIC (General Insurance Council), more than 60% of the two-wheelers on the Indian roads are not insured. While a two-wheeler rolls out of the showroom with an insurance as it is compulsory according to the Motor Vehicle Act, most of the owners do not renew the insurance once it lapses.
With the increasing sales of two-wheelers, even the number of uninsured two-wheelers has increased significantly in the past few years. To tackle this sorry state, the IRDAI has introduced long-term two wheeler insurance. Let us have a look at some important reasons that make this type of insurance ideal for every two-wheeler owner.
No Renewals Every Year
The most common reason for most people not renewing their two-wheeler insurance is the hassles involved in the process. Most of the people find it very cumbersome to go through this process every year and not renewing the policy seems like an excellent option.
But with a long term bike insurance, you can say goodbye to this yearly process as you’ll only be required to renew your policy every three years.
The premiums of the 3rd party liability insurance go through revisions every year. Irrespective of whether you buy a comprehensive cover which would cover damages to your own two-wheeler or just a standard 3rd party policy, there is a possibility that you’d be required to pay a premium that is slightly higher every year.
With long-term insurance, you’ll get to lock the premium amount for 3 years. Moreover, many of the insurance providers also provide discounts upfront when you buy a long-term insurance.
If it was just yesterday that your two-wheeler insurance lapsed, you are liable to pay the penalty if at all you are caught with an expired insurance. Not to forget the risks of unexpected circumstances when your two-wheeler is involved in an accident. With an invalid insurance, you’ll have to pay for the damages from your own pocket. So avoid the risk of paying this penalty and renew your insurance ahead of time by opting for a multi-year insurance policy.
You can buy long term two-wheeler insurance policy to avoid such non-renewal related risks and expenses.
One of the best features of a two-wheeler insurance is the No Claim Bonus (NCB). For every year in which you do make a claim, you get a discount on the next years’ premium. However, the NCB for a single year insurance and long-term insurance are calculated differently.
Long-term insurance comes with NCB protection with the help of which the NCB doesn’t just fall to zero which happens with single-year policies when a claim is made.
If you’ve purchased a long-term two-wheeler insurance, it doesn’t mean that you are stuck with the policy for three years. You can cancel it anytime and also get a refund of the unutilised policy period from some insurance providers.
However, make sure that you first buy a new policy before cancelling an existing one. Also, if you have NCB in your current policy, get it transferred to the new policy for a cheaper premium.
As you can see, there are several ways in which a long-term two-wheeler insurance can benefit you. Understand these benefits thoroughly and start searching for insurance online to start experiencing these benefits as quickly as possible.
Read more on Long- Term V/s One Year Two Wheeler Insurance