Benefits of Buying Long-Term Two Wheeler Insurance
Published On Apr 15, 2021 10:00 AM By InsuranceDekho
This article highlights the benefits of buying long-term two wheeler insurance.
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To close the gap, the Supreme Court recently mandated that new two-wheeler owners purchase 5-year third-party insurance. Should current two-wheeler owners, on the other hand, think about long-term two-wheeler insurance?
Benefits Of Buying Long-Term Two Wheeler Insurance
If they are aware of the numerous advantages that multi-year vehicle insurance can provide, the answer is definitely “Yes.” The following are the top six benefits:
1. Savings On Premiums
The IRDAI (Insurance Regulatory and Development Authority regulates third-party motor vehicle insurance rates). bike Insurance companies may not charge more for basic third-party bike insurance than the IRDAI has set. However, the regulatory body raises bike insurance premiums by nearly 20% every year.
So, if you buy a one-year cycling insurance policy this year, you'll almost certainly have to pay a 20% higher premium next year when you renew it. With the help of a multi-year policy, this can be avoided. For example, if you buy 5-year insurance, you will be protected from premium increases so the premium cannot be increased during the policy term.
2. Hassle-Free Renewal Process
The complicated renewal process is one of the most common reasons why people do not renew bike insurance. While this may have been an issue in the past, two-wheeler insurance online has made these issues obsolete.
Many people, however, still think that renewal is a time-consuming and paperwork-intensive process. Multi-year insurance is a good way to avoid having to renew your policy every year; your car will be covered for two to five years, and you won't have to worry about it.
3. Avoid Policy Lapse
Riding a two-wheeler without a valid third-party or comprehensive bike insurance policy is illegal. It could result in severe penalties, including imprisonment. Furthermore, if the policy expires, you will need to buy a new policy and go through the entire paperwork and inspection process all over again. With the help of a multi-year insurance policy, all of this can be easily avoided. It protects you against the serious effects of policy lapse for several years with a single purchase.
4. Avoid Losing NCB
The accumulation of No Claim Bonus, or NCB, is one of the most important advantages of timely comprehensive bike insurance renewal. If you haven't filed any claims in the previous year, you can get a discount on your insurance premium. The NCB for the first claim-free year is 20%, and it will rise to 50% in the fifth claim-free year.
However, if you do not renew your bike insurance within the grace period following the expiration of your previous policy, you risk losing your NCB. You don't have to keep track of your accrued NCB every year whether you buy long-term two-wheeler insurance online or offline. In addition, some Indian insurers have a slightly different NCB structure for multi-year policies, which may help you get better discounts.
5. Avoid Break-in
If the bike is not in "insurable" condition as determined by the bike insurance company, your application may be denied. Even if the request is granted, the insurance premium will be high, and the Insured Declared Value (IDV) will suffer. This can be avoided with a long-term two-wheeler insurance policy.
6. Cancel Policy Anytime You Like
The percentage of the premium that was not used would be refunded by the incumbent insurer. You can also transfer your existing NCB to the new insurer. Before cancelling your current policy, you must obtain an NCB certificate from your current insurer and buy a new policy from the new bike insurance company. Your bonus will be moved to the new policy after you submit the NCB certificate to the new insurer.
Long-term two-wheeler insurance policies, as can be seen above, come with several benefits. Consider buying a multi-year plan if your insurance renewal is approaching. You'll be able to take advantage of all of the benefits listed above.
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.