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Advantages Of Long-Term Third-Party Two-Wheeler Insurance

Published On Jun 11, 2022 10:00 AM By InsuranceDekho

Advantages Of Long-Term Third-Party Two-Wheeler Insurance

When riding a motorcycle or scooter in India, you must have third-party coverage. It provides protection against third-party property damage, bodily harm, incapacity, and death. To keep the insurance valid and in compliance with regulatory requirements, it must be renewed every year before its expiration date. It is advised that you choose a long-term third-party bike insurance plan to prevent the inconvenience of renewing your policy every year. This will save you time and money. If you buy a new two-wheeler, however, you must get a 5-year long-term third-party bike insurance plan, according to the insurance regulator.

Advantages of Long-Term Third-Party Two-Wheeler Insurance?

Although it is required to get a long-term insurance policy for a new two-wheeler, it is still suggested to purchase a multi-year plan for older bikes and scooters because of the following advantages:

1. Defend Yourself Against Rising Insurance Rates

You must pay a predetermined amount of premium for numerous years to get long-term third-party coverage. It protects you from having to pay a higher annual premium since the IRDA, not your insurer, sets the rate for a third-party plan. The premium for the basic insurance cover is determined on a quarterly basis by the insurance regulating authority, and it is the same for all insurers. It can vary at any moment. Taking the increasing rates into account, purchasing a long-term third-party plan can keep your premium the same for another 5 years.

2. Bike Insurance Policy Renewal is not Required Every Year

Many two-wheeler owners are known to fail to renew their insurance policies on time. With traffic penalties and third-party damages, they are subject to increasing financial and legal risks. However, by purchasing a long-term two-wheeler coverage, you are protected from the burden of yearly bike insurance renewals, allowing you to ride without fear of fines or losses for a long period. There is no annual renewal duty that relieves policyholders and provides them with peace of mind.

3. Benefit from Long-Term Insurance Coverage

The government has made it mandatory for two-wheeler owners to acquire a 5-year third-party insurance policy, with or without own-damage coverage, that also covers the bike. These restrictions are put in place to ensure those bike owners are protected from third-party damage and loss for a long period. When a legislative mandate is not applicable, a similar concept is applied to motorcycles or scooters that are older than 5 years old. Increased charges may arise from an expired two-wheeler insurance coverage, which you may avoid with a long-term policy.

Take Away

Five-year third-party insurance coverage may seem like a big commitment, but it provides a lot of advantages over an annual policy. In addition to third-party damage and loss, you may relax about any form of fee associated with two-wheeler insurance because you will be meeting the legal need for a long time if you choose a long-term plan. It also protects you from rising rates. In brief, choosing a long-term third-party insurance policy for a two-wheeler will cover all of your insurance requirements for the following five years. It is now more crucial than ever to make an educated selection in addition to making a purchase. You can get a separate insurance and car quote from the dealer. You may also compare prices from all accessible vehicle insurance providers online and make an informed selection. Even though the new regulation increases the total cost of multi-year insurance, it will assist you in making some savings.

Also read: Two-Wheeler Insurance Policy Influencing Factors

Is Two-Wheeler Multi-Year Insurance Advantageous?

Disclaimer

This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
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