Indian roads are always prone to congested traffic and accidents. A two-wheeler insurance policy is a must for every bike rider, and it is also a government mandate. Both the third-party and comprehensive policies had a one year term, which has been a task to remember every year and get renewed for the insurers. Fortunately, as per the supreme court order given in 2018, IRDAI has made it mandatory to have a 5 year insurance cover for any new bike being purchased.
Why is the Maximum Population Attracted to the Long-term Bike Insurance Policy?
More people than those who fail to renew their car insurance on time fail to do the same with their bike insurance. Long term two wheeler insurance usually comes with the insurance coverage for up to 2 or 3 years so that the vehicle owner does not have to worry about renewals every year, was recently announced by IRDAI in an effort to encourage two-wheeler owners to keep their motorcycles covered.
There is no suspicion that holding a proper two-wheeler policy in place may go a long way toward protecting you from financial penalties if your vehicle is lost or damaged. At the same time, it protects you from third-party liability. As a result, it is critical that you renew your insurance policy on time in order to continue receiving uncompromised coverage.
Regular and Long-term Bike Insurance: Differences
Coverage Duration: Long term insurance can offer coverage for up to 3 years, but standard insurance only covers your bike for a year. Regular insurance must be renewed annually, whereas long-term policies must be renewed every 3 years.
Premiums: For long-term insurance, the premium won't rise for up to 3 years. The premium of your bike will remain constant for up to 3 years, which means no impact of market fluctuation.
Cancellation: For a 1-year insurance policy, there is no return if you make a claim and subsequently decide to terminate your coverage. On the other hand, if you have long-term insurance, you receive a proportionate reimbursement based on the time left in the term.
What Will Benefit You If You Choose a Long Term Bike Insurance Policy?
1. Huge Premium Savings
The cost of third-party motor vehicle insurance is governed by the Insurance Regulatory and Development Authority of India (IRDAI). Basic third-party insurance cannot be purchased from insurance firms for more than the IRDAI-set price. However, the governing body raises insurance prices by roughly 20% a year.
Therefore, if you get a one-year policy for bike insurance this year, you will often have to pay a 20% higher cost when you renew the coverage the following year. A multi-year bike insurance policy can help you prevent this. For instance, if you get 5-year insurance, you won't be affected by price spikes because the premium can't go up during that time.
2. Get Rid of the Pain of Policy Renewal for a Long Term
The difficult renewal procedure is one of the most frequent reasons why bike insurance is not kept up to date by many people. But while this could have been an issue in the past, these difficulties are no longer present. Thanks to online two-wheeler insurance!
However, a lot of people still think that renewing a two-wheeler insurance policy takes a long time and requires a lot of paperwork. With multi-year insurance, your bike will be covered for 2 or 3 years, so you won't have to worry about renewing the coverage every year.
3. Prevent Policy Failure
It is illegal to ride without a qualified third-party or comprehensive two-wheeler insurance policy. It may result in severe punishment or possibly incarceration. Additionally, you will have to buy a new policy, go through the inspection process, and complete all the paperwork whenever the policy expires. A multi-year bike insurance policy can help you simply avoid all of this. You may prevent harsh policy-lapse implications for a number of years with only one purchase.
4. Loss of NCB
No Claim Bonus (NCB) accumulation is one of the most important advantages of comprehensive bike insurance renewal done on time. If you haven't made any claims in the previous year, you're eligible for a discount on the insurance rate. The NCB is 20% for the first claim-free year, and it may rise to 50% for the following four claim-free years.
However, if you don't renew your bike insurance during the grace period following the expiration date of the last policy, you run the danger of losing your NCB. You don't have to keep track of the accrued NCB each year if you have long-term two-wheeler insurance, whether it be online or offline. Besides, for multi-year contracts, certain Indian insurers offer a bit different NCB structure, which may enable you to receive higher discounts.
5. Prevent Break-ins
Assuming that over the previous two years, you didn't renew your insurance. Now that there has been a substantial lapse in coverage, your insurer could want to check your bike if you decide to buy new bike insurance. These are typically referred to as "Break-in" rules.
If the insurance provider determines that the bike is not in an "insurable" state, they may reject your application. Even if the request is granted, the Insured Declared Value (IDV) would suffer and the insurance premium would be high. You may prevent this situation with a long-term two-wheeler insurance policy.
6. Policy Cancellation at Any Time
An insurance contract for 2, 3 or 5 years is a long-term commitment. What if, after making a purchase, you are unhappy with the insurance company's services? What if the insurer's claims procedure is really complicated? In such circumstances, you are free to change insurers and terminate your coverage whenever you please.
The unused premium amount will be refunded by the existing insurer. Your present NCB can also be transferred to the new policy of the new insurer. Before cancelling your old insurance, you must first get an NCB certificate from your current insurer and buy the new insurer's coverage. Your bonus will be applied to the new insurance after the new insurer receives the NCB certificate.
Long-term bike insurance policies offer a variety of advantageous benefits, as mentioned in this article. Do consider getting a multi-year plan if your insurance renewal is coming up soon, so you can start enjoying all the advantages shared above!
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