As a bike owner, your two-wheeler insurance policy protects you from uncertainties on the road. This policy spans one year, and after that, you need to get it renewed. However, if you forget to renew the bike insurance in time, you can face legal and monetary problems. The best way to get past these troubles is to buy a long-term bike insurance plan.
This plan is valid for 3 to 5 years and offers many advantages. You can easily purchase the policy online after comparing the available options. This allows you to enjoy peace of mind and unparalleled financial security in the event of an unfortunate incident. You can also get attractive discounts on your premium when taking a long-term bike insurance policy. In this article, let's check out the benefits of buying long-term bike insurance.
Important Benefits of Buying a Long-term Bike Insurance Plan
Simply stating that a long-term plan is advantageous won’t serve your purpose. This section helps you evaluate how a multi-year two-wheeler insurance plan has the edge over an annual one.
Yearly Renewal of Plan is No Longer Required
It is troublesome to remember the date of the bike insurance policy expiry. Even when reminders show up, you may forget to renew the policy on time. This can make your ride vulnerable. In case the policy remains expired, the bike insurance company will not compensate you for any untoward incident.
A long-term policy offers you freedom from renewing the insurance policy frequently. Pay once and enjoy extended protection for a long duration.
Saves Big on Bike Insurance Premiums
You may look at the premiums you had paid during the past 2-3 years for the annual renewal of the two-wheeler insurance plan. There will be an increase of 10-20% per annum in premium value. This hike is regulated and approved by the Insurance Regulatory and Development Authority (IRDAI).
When you purchase a long-term plan, you are shielded from annual increases. The cost saved by the insurer on administrative expenses is passed on to you in the form of discounts and other incentives. Further, the no-claim bonus (NCB) and underwriting benefits remain intact.
Helps You Gain a Better NCB
Insurers offer attractive NCBs if you subscribe to a long-term plan. The NCB will be calculated keeping in mind long-term plan validity. Hence, you can benefit up to 5% more NCB value on a multi-year plan.
Further, if you forget to renew your annual bike insurance for a significant time, the accumulated NCB becomes zero. The long-term plan ensures that you can enjoy NCB benefits optimally if you ride safely on the road.
Read more - How to Calculate NCB for Two Wheeler Insurance?
Helps You Meet Legal Obligations
As a citizen of India, you must abide by the country’s law. The Motor Vehicles Act, 1988, mandates compulsory bike insurance coverage for all two-wheeler riders. If you are caught on the road without valid insurance, you may be
- Fined INR 2,000 or sentenced to 3 months of rigorous imprisonment
- Fined INR 4,000 and/or imprisoned for 3 months for the second offence
If you had forgotten to renew bike insurance online and an emergency requires you to go out on your bike, you risk getting caught by traffic police. You can easily steer clear of legal issues with a multi-year bike insurance policy.
Reimburses You a Portion of the Premium Upon Policy Cancellation
You can cancel the long-term policy midway if
- You are not satisfied with the services offered by the present insurer.
- You find the bike insurance claim process lengthy and the settlement ratio smaller.
You have the liberty of switching to a new insurer of your choice.
The existing insurer will
- Issue an NCB certificate indicating the quantum of the unutilised bonus so that the same is deducted from the premium of the new policy you will purchase.
- Usually reimburse a certain proportion of the premium value left unused for the remaining duration of the cancelled policy.
Some insurers also reimburse the entire premium value for the remaining period if
- Your bike has been stolen.
- Your motorcycle is irreparably damaged.
You can buy a long-term two-wheeler insurance plan after evaluating the numerous advantages you stand to enjoy over the annual plan. The multi-year plan translates into extra monetary benefit and added peace of mind for the owner.
Since you can cancel the plan at any time during the policy period, you don’t have to stay loyal to a particular insurer for a longer duration, even if its service is of poor quality. You enjoy the freedom of approaching the IRDAI to get your complaints against the insurer resolved quickly. Enjoy a safe bike ride while the long-term plan protects against losses inflicted by any unfortunate incident.