Reasons To Select Long Term Third Party Two Wheeler Insurance Policy
Published On Feb 23, 2022
We'll go through why you should choose long-term third-party bike insurance coverage in this post.
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When riding a motorcycle or scooter in India, you must have third-party insurance. It provides coverage for third-party property damage, bodily injury, disability, or death. To keep the policy valid and in compliance with the law, it must be renewed every year before its expiration date. To avoid the headache of renewing your bike insurance every year, consider a long-term third-party bike insurance plan that can save you time and money. However, according to the insurance authority, if you acquire a new two-wheeler, you will be required to obtain a 5-year long-term third-party bike insurance plan.
Benefits of Purchasing a Long-Term Third-Party Two-Wheeler Insurance Policy
In India, you must carry third-party insurance if you ride a motorbike or scooter. It protects you from property loss, bodily harm, disability, and death caused by third parties. Every year before the expiration date, the insurance must be renewed to maintain it valid and in conformity with regulatory requirements. To avoid the hassle of renewing your coverage every year, it is recommended that you pick a long-term third-party bike insurance plan. You will save both time and money by doing so. According to the insurance authority, if you buy a new two-wheeler, you must get a 5-year long-term third-party bike insurance plan. 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 due to the following benefits:
Defend Yourself Against Rising Premiums
You must spend a certain amount of premium for a number of years in order to obtain a long-term third-party insurance policy. It protects you against paying a higher annual premium since the IRDA, not your insurer, establishes 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, therefore it is the same for all insurers and can alter at any moment. Taking the price rise into account, purchasing a long-term third-party plan can keep your premium the same for another 5 years, despite the rising rates.
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.
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.
Buying a 5-year third-party insurance coverage may seem like a big commitment, but it provides a lot of advantages over an annual policy. Aside from third-party damage and loss, you won't have to worry about any form of fee-related to two-wheeler insurance because you'll be meeting the legal need for a long time if you choose a long-term plan. It also protects you from the rising cost of premiums. In brief, choosing a long-term third-party insurance policy for your two-wheeler will cover all of your insurance needs for the following five years.
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.