Why To Choose Long-Term Third-Party Two-Wheeler Insurance?
Published On Nov 14, 2021 11:00 AM By InsuranceDekho
In this article, we will discuss why you should select a long-term third-party bike insurance policy.
Table of Contents
What Is Long-Term Third-Party Two-Wheeler Insurance?
It is a compulsion to own a third-party cover when riding a bike or scooter in India. It gives coverage for property damage, bodily injury, disability, or death sustained by the third party. This policy needs to be renewed every year before its expiry date to keep the policy active and comply with the legal requirements. To avoid every year renewal hassle, it is recommended to opt for a long-term third-party bike insurance plan that can reduce additional hassle and expenses. However, as per the insurance regulator, if you buy a new two-wheeler then you will have to purchase a long-term third-party bike insurance plan of 5 years as a compulsion.
Why Choose A Long-Term Third-Party Two-Wheeler Insurance?
To buy a long-term insurance policy for a new two-wheeler is compulsory, but for old bikes and scooters, it is still recommended to opt for a multi-year plan due to some benefits which are discussed below:
1. Protection from Increasing Premiums
To purchase a long-term third-party cover, you have to pay a fixed amount of premium for multiple years. It saves you from a higher premium each year which can rise as the IRDA determines the premium for a third-party plan and not your insurer. Since the insurance regulatory body sets the premium for the basic insurance cover on a periodic basis, its premium goes the same across all insurers and can change at any time. Taking the revision in prices into consideration, choosing a long-term third-party plan can make your premium for another 5 years remain the same irrespective of the increased rates.
2. No Yearly Bike Insurance Policy Renewal
It is observed that many two-wheeler owners fail to get their insurance plans renewed on time. This gets them exposed to increased financial and legal liabilities with traffic fines and third-party losses. But, with the purchase of a long-term two-wheeler policy, you are secured from the hassle of yearly renewal of bike insurance policy that makes you live carefree for a long time in terms of insurance works and ride without fretting about the fines or losses. No yearly renewal task makes policyholders relieved and gives them peace of mind.
3. Enjoy Continued Policy Coverage for Long
The government has made a compulsion for two-wheeler owners to purchase a 5-year third-party insurance policy with or without own-damage cover, where the bike is insured as well. Such rules are formulated to ensure bike owners stay covered against third-party damage and loss for a good amount of time without any hassle. A similar notion is applied for bikes or scooters which are more than 5 years of age when government mandate is not applicable. The lapsed two-wheeler insurance policy can result in increased expenses that you can prevent with a long-term policy.
Purchasing a 5-year third party insurance policy may seem to be a huge commitment but it brings several benefits in comparison to an annual policy. In addition to third-party damage and loss, you become stress-free about every type of fine pertaining to two-wheeler insurance as you meet the legal requirement for long by opting for a long-term plan. It shields you from the increasing cost of premiums as well. In short, the selection of a long-term third-party insurance cover for a two-wheeler will take care of your various insurance needs in the next five years.
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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.