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Benefits of Purchasing Long-Term Two-Wheeler Insurance

Updated On Nov 22, 2021

The rate of accidents has grown as the number of cars on the road has increased. It is required that you obtain insurance for your two-wheeler. However, many consumers have misunderstandings about buying long-term scooters or motorcycle insurance.

Every two-wheeler owner in India is required by the Motor Vehicle Act to maintain current third-party insurance. However, according to a survey by the General Insurance Council, around 60% of two-wheelers on the road in the country lack legal insurance coverage. This implies that millions of individuals are putting their money on the line every time they ride their bikes.

There are a large number of two-wheelers on Indian highways now, ranging from personal automobiles to taxi bikes. Two-wheelers, as opposed to four-wheelers, provide an easy means of transportation that is easier to maintain, handle and is excellent for dealing with rush hour traffic. However, it is common for two-wheeler owners to ignore or fail to renew their insurance on time, resulting in a large number of uninsured vehicles on the road.

Benefits of Purchasing Long-Term Two-Wheeler Insurance

Long-Term Two-Wheeler Insurance Benefits

The numerous advantages that multi-year automobile insurance may provide are:

  • Premiums Can be Drastically Reduced 

Third-party motor vehicle insurance prices are regulated by the IRDAI (Insurance Regulatory and Development Authority). Insurance providers are not allowed to charge more for basic third-party insurance than the IRDAI has set. However, the regulating agency raises insurance prices by about 20% every year. So, if you get a one-year bike insurance policy this year, you'll almost certainly have to pay a 20% higher cost next year when you renew it. With the use of a multi-year policy, this may be prevented. For example, if you get 5-year insurance, you will be shielded against premium increases because the rate cannot be increased throughout the policy term.

  • Renewing Your Insurance Policy Shouldn't Be a Hassle

The difficult renewal process is one of the most prevalent reasons why consumers do not renew their bike insurance. Many individuals, however, still feel that renewal is a time-consuming and paperwork-intensive procedure. Multi-year insurance is a good method to avoid having to renew your coverage every year; your car will be covered for two to five years, and you won't have to worry about it.

  • Prevent Policy Irregularities

It might result in severe consequences, including jail. Furthermore, after the insurance expires, you will need to purchase a new policy and go through the same paperwork and inspection process all over again. With the aid of multi-year insurance coverage, all of this may be simply avoided. It protects you against the severe repercussions of insurance lapse for numerous years with one purchase.

  • NCB is Being Lost

If you haven't made any claims in the previous year, you might obtain a reduction in your insurance rate. The NCB for the first claim-free year is 20%, and it can rise to 50% in the fifth claim-free year. However, if you do not renew your bike insurance during the grace period following the expiration of your prior policy, you risk losing your NCB. You don't have to keep track of your collected NCB every year if you get long-term two-wheeler insurance online or offline.

Take Away

Long-term two-wheeler insurance coverage, as can be seen above, come with a slew of benefits. If your insurance plan is about to expire, consider getting a multi-year plan to take advantage of all of the aforementioned benefits. Long-term two-wheeler insurance policies, as mentioned above, have a number of advantages. If your insurance is about to expire, consider purchasing a multi-year plan. You will be able to make use of all of the aforementioned advantages.

Also Read:

All you need to know about Tata AIG two-wheeler insurance

Why Should You Purchase a Bike Insurance Policy from TATA AIG?

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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