Taking utmost care of our vehicle is ingrained in our DNA, and many two-wheeler owners go to great lengths to keep their vehicles safe and secure. However, people often forget to invest in a vehicle's most important safety net— two-wheeler insurance. The highest number of uninsured vehicles in India happens to be two-wheelers, and you will have to pay up to INR 2000 as a penalty, as as per the Motor Vehicles Act, 1988.
The Insurance Regulatory and Development Authority of India (IRDAI) has ruled that it is mandatory for all two-wheelers, whether new or old, to have a five-year long-term two-wheeler insurance plan. So. if you are an existing policyholder or want to renew your two-wheeler insurance, should you consider a long-term two-wheeler insurance plan?
The answer is a resounding yes! Here are four reasons explaining why!
It Shields You from Non-renewal Risks
As per law, if a person is found riding a two-wheeler without valid insurance, it is a punishable offence and comes with a hefty fine. So if you have not renewed your policy on time, you cannot bike insurance claim any coverage in case of accidents, theft, or other damage and may even be required to pay the penalty.
Despite investing in two-wheeler insurance, most bikers cannot keep track of the annual renewals and premium dates and sometimes fail to pay the premiums or renewal fees on time. Due to this small lapse, they cannot avail themselves of benefits when they most need them. The delay in premium payment also comes with additional fines, which they must pay to continue the policy.
Additionally, the renewal process for a policy can often be lengthy and time-consuming, and if your renewal period of bike insurance lapses, you will have to repurchase a new insurance policy. So instead of renewing your policy every year and always being wary of paying the premium on time, it is better to go for long-term two-wheeler insurance. It helps you conveniently renew your policy after two or three years and lowers the chances of any non-renewal risks.
You can Save on Insurance Premiums
Opting for long-term two-wheeler insurance may seem costly compared to one-year third-party third insurance or a personal damage coverage plan. However, since it covers you for a longer term, this insurance helps you save a lot. It comes with various discounts you can avail of by paying the premium upfront, enabling you to get additional savings on your bike insurance. For example, third-party insurance covers the damage caused to a third party during an accident but doesn't cover the damages to the rider. So it is always ideal to opt for a comprehensive two-wheeler insurance policy and get complete peace of mind for an extended period.
Insurance providers, too, will offer customers great discounts on a long-term insurance policy, as they save on administrative costs and get an upfront premium payment.
In addition, bike insurance companies may increase their premium rates year on year, depending on the regulations and market conditions. By buying insurance for a more extended period, you can protect yourself against the premium hikes, as you cannot be charged any additional fees during the tenure of your policy.
You Can Benefit from a Higher NCB
Have you ever thought of what would happen to all the premiums you have paid if you did not have to make any bike insurance claim during the tenure of your long-term two-wheeler insurance? To keep you incentivised to drive safely, insurers offer a higher discount on the premiums for your long-term insurance policies, called a no-claim bonus (NCB) in bike insurance. It is a benefit provided during the renewal of your policy if you have not made any claims in the previous year.
|Year||Number of Claims||Bonus (%)|
|3 years||3 or more||0%|
|2 years||2 or more||0%|
Note - The above NCB offers apply to Universal Sompo long-term two-wheeler insurance.
The NCB slabs for long-term policies are always higher than that of a short-term policy, some of which may not even have this benefit. Thus, the policyholder gets an additional advantage with a long-term two-wheeler insurance policy.
You Can Switch Your Policy Anytime You Want to
Even if you plan on selling your two-wheeler in the short term, you can still go for a long-term plan. The reason?
A long-term insurance policy can easily be transferred or switched at any point in the policy tenure, and you can get your new vehicle insured. The best part is the transfer of existing policy benefits to the new one. For example, if you have no bike insurance claims for the current policy, it will continue for the new vehicle, enabling you to get a higher NCB at the end of the policy period.
While there are several insurance policies that you can opt for in today’s age, long-term two-wheeler insurance coverage is the ideal option. It offers many advantages and provides complete peace of mind since it covers you in instances other motorbike insurance policies may not always do.
Although long-term insurance may cost a little more than short-term third-party bike insurance or other bike insurance policies, the price will be covered over time. It also comes with a comprehensive policy option, making it highly recommended for anyone buying a new two-wheeler or renewing their bike insurance.
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