Third-party damages may take many forms, including third-party damage to property, injuries, impairment, or death. Paying for these liabilities might put your funds at risk.
Previously, the legislation specified that you (a two-wheeler owner) must purchase a yearly or short-term third-party insurance plan to pay for these expenses. However, the regulators have changed the legislation given the significance of this fundamental insurance and the need to increase the count of covered vehicles.
According to current rules, you must get a long-term third-party two-wheeler insurance policy if you buy a new two-wheeler vehicle. Long-term insurance is where the premiums remain constant over time while covering you against all legal liabilities. You would be required to pay a fixed charge for an extended time per the validity of the two-wheeler insurance policy.
Purchasing long-term two-wheeler insurance coverage provides peace of mind since it has a more extended validity than the one-year insurance policies available for two-wheelers in India.
Are there any other benefits to having two-wheeler insurance coverage valid for an extended period? Continue reading the details mentioned below to learn more about these advantages.
Regular and Long Term Two Wheeler Insurance: What's the Difference?
Although the coverage provided by both insurance plans is typically identical, a few distinctions make long-term insurance the better option.
| Regular Two-wheeler Insurance | Long-term Two-wheeler Insurance |
| Regular two-wheeler insurance only insures your vehicle for a year. | Long-term two-wheeler insurance may give coverage for up to 5 years. |
| Regular two-wheeler insurance must be renewed yearly. | Long-term two-wheeler insurance policies must be renewed every 2, 3 to 5 years. |
| Premium costs increase every year for almost every annual insurance policy. | In the event of long-term insurance, premiums do not vary for up to 5 years. |
| If you make a claim and subsequently decide to terminate your insurance, you will not get a reimbursement if you have a one-year policy. | If you have long-term insurance, on the other hand, you will get a proportionate rebate depending on the remaining period. |
Long-Term Two-wheeler Third-party Insurance Policy Benefits
Premium Price That is Consistent
The premium prices for two-wheeler third-party insurance policies alter every year. However, if you get long-term two-wheeler third-party insurance coverage, you may avoid paying a higher premium over the years.
Almost every year, IRDAI revises third-party pricing, which usually increases policy premiums. You may save quite well on yearly renewal rates by purchasing long-term insurance coverage.
Adherence to Legal Obligations
Two-wheeler third-party insurance coverage having an extended validity protects you for a longer time against legal obligations that may emerge in the case of an accident. In addition, the insurance company will look after you if you are involved in causing third-party damage during an unintended incident involving your two-wheeler.
Simple to Acquire
It is simple to get long-term two-wheeler third-party insurance coverage. You may purchase it either online or offline, depending on your preference. Paytm Insurance can help you choose the right third-party insurance policy as it has various prominent insurance providers offering highly lucrative insurance policies.
Long-term third-party insurance is simple and easy to acquire through online and offline mediums, with different firms offering various insurance policies for two-wheelers in India.
No Claim Bonus Reward
Assume you don't make any insurance claims for the duration of your policy. Then, when you renew your vehicle insurance before it expires, your insurer will give you a discount on the own damage portion of your insurance.
This discount starts at 20% for the first claim-free year. It gradually grows each subsequent year until you reach five claim-free years when your No-Claim Bonus (NCB) is limited to 50%. This is because the personal damage component accounts for most of your insurance cost, resulting in significant long-term benefits.
The NCB is a monetary reward given to the vehicle owner for safe driving. A higher NCB is another benefit of purchasing a long-term two-wheeler third-party insurance policy in India.
Discounts
Due to the expense of multi-year two-wheeler insurance, the bike insurance company can offer discounts on a three-year plan. You may be able to lower your premium even further if your vehicle has an anti-theft system, you are a special needs driver, or you are a part of a designated automotive association.
Improved Convenience
Long-term two-wheeler insurance is generally a win-win scenario for both the customer and the insurer. However, data shows that over 70-75% of two-wheelers are not insured even though it is required. In addition, annual renewals take a lot of time and effort, and they come with a significant expense in contacting customers for reminders and delivery fees for sending policies, among other things.
Many policyholders do not have the obligatory third-party insurance because they forget to renew their insurance before it expires. Policyholders with long-term third-party two-wheeler insurance do not have to bother about their policy expiring for a few years. In addition, insurers may pass on cost savings to clients through discounts if inefficiencies connected to yearly renewals are reduced.
Conclusion
Insurance plans for the long term can make you anxious, but they have more advantages than annual coverage. Excluding third-party claims, you may relax any penalties associated with two-wheeler insurance since you satisfy the compliance obligations by enrolling in a long-term plan. Additionally, if you do not file any claims, you will get premium savings when extending the policy.
When compared with short-term two-wheeler insurance coverage, long-term policies provide several advantages. Paying the cumulative premium for a few years is nothing more than a prospective future investment. With a two-wheeler insurance premium calculator, you can analyze the payment for a long-term policy and make an informed buying choice after considering all the pros and cons.
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