In a country like India, thousands of vehicles are on the road every day, most of which are two-wheelers. As such, two-wheeler insurance is of prime importance, not just because it is mandated by law but because it safeguards you from any financial liability should you meet with an accident. However, several bikes are uninsured or fail to renew their policy on time.
To prevent such instances from occurring, opting for long-term two-wheeler insurance seems like a logical solution. This prevents you from going through the hassle of remembering to renew your policy and protects you on the road. Over and above this, having a long-term policy offers benefits of discounted premiums and protection on other claims, such as the NCB bonus.
Apart from these, there are other advantages of buying a three-year two-wheeler insurance policy. Let's find these out!
1. Avoid Penalties and Charges
Since it is mandatory by law to have a third-party bike insurance plan for your two-wheeler, not having one will result in penalties. Most of the Indian population faces a major issue in renewing the policy; if not done on time, it will most likely result in certain charges.
With a long-term policy, this cost gets eliminated. Since there is no need to renew the policy every year, the charges incurred otherwise in annual premiums or renewals are avoided.
2. Lower Rates of Premium
The two-wheeler insurance rates for annual policies are higher than the insurance rates for three-year-long policies. Additionally, the premium rates are increasing every day with the rising inflation. A long-term policy helps the policyholder pay a lesser premium for the same services.
3. Less Risk of Policy Lapse
A policy lapse is a scenario in which a person has forgotten to pay the premium for his insurance policy under certain circumstances. Because of this, the benefits and coverages offered under the policy are terminated.
A long-term policy prevents the policy from lapsing for at least 3 years by setting automatic payment of premiums. This way, the policyholder can enjoy the benefits at a regular premium price.
4. Easy Cancellation Policy
The cancellation policy for long-term insurance is swift. You do not have to go through any extra hassle for the cancellation, and you can even do it online if you choose. You can easily switch if you find a better option besides this policy. The accumulated NCB can also be transferred to your new policy.
The major benefit of cancelling a long-term policy is having the insurer return the unutilized premium amount. This way, you incur no extra cost with any hard and fast rule to continue your policy duration.
5. Avail No-claim Bonus
Each year, the insurer will pay a bonus amount to the policyholder if they have not raised any bike insurance claim during the year. If you are a safe driver and have not had any unfortunate accidents, you would not have availed any policy benefits. This would qualify you for the no-claim bonus. When you get a multi-year plan, you get an NCB of 20% at the time of policy renewal, which increases with every subsequent year with no claim being filed.
Read more - A Mini Guide on NCB for Bike Insurance
The Bottom Line
There are several benefits that a policyholder can avail of based on his policy. For a country where having insurance is a mandatory rule of law, long-term policies make more sense financially and in terms of saving on the effort and energy that needs to be invested.
Moreover, because of the other provided benefits, this policy works in the policyholder's best interests. It gives you an extra advantage in terms of cost, policy renewals, discounted premium prices, etc. This policy also helps you protect the No-Claim Bonus in bike insurance and accrues the amount before the policy transfer.
Hence, it very much makes sense to have a long-term policy that would best fit the policyholder. If you are looking for different options for a three-year long-term bike insurance policy, visit Paytm Insurance. Here, you can compare the long-term insurance plans various bike insurance companies offer and select one that best suits your needs. It also allows you to apply for your policy online, saving you from the hassles of paperwork.
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