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Why You Should Choose Long-Term Two-Wheeler Insurance?

Published On Jan 05, 2022 11:00 AM By InsuranceDekho

Know why should you opt for long-term two-wheeler coverage? Read along!

In India, two-wheelers have the highest incidence of uninsured vehicles. One of the main reasons for this was that two-wheeler insurance was only available for a year until recently. Last year, the Insurance Regulatory and Development Authority of India (IRDAI) allowed insurers to provide three-year long-term policies for two-wheelers to solve this issue.

Why You Should Choose Long-Term Two-Wheeler Insurance?

Why Should You Opt for Long-Term Two-Wheeler Coverage?

1. Discounts Available

Discounts on two-wheeler long-term automobile insurance are available to policyholders. Because long-term plans save insurers money on administrative costs, they offer clients a variety of discounts and incentives. This is in addition to the underwriting benefits and no-claim incentive offered. While third-party liability insurance is required by law in the United States, own damage insurance is optional. With their three-year third-party insurance plans, insurers like New India Assurance are also giving upfront savings for own damage insurance.

2. Renewals of Long-Term Two-Wheeler Insurance

It is far more convenient to renew a policy every two or three years rather than every year, especially if one has many policies. When a policy's term expires, the policyholder must go through a long renewal procedure. If an accident occurs after the renewal deadline has past, the policyholder will be unable to file a claim. Furthermore, before renewing or providing a new coverage, the insurer may require that the vehicle be examined. Furthermore, if your insurance has been lapsed for a long period, you may have difficulty finding an insurer willing to cover your vehicle. If you have long-term two-wheeler insurance, the risk of such issues is much lower.

3. Long-Term Two-Wheeler Insurance Premium Rates

Premiums for third-party insurance have been continuously growing over time. IRDAI increases the cost of third-party liability insurance by 20% per year. If you had to buy long-term auto insurance, your premiums would not fluctuate for the first three years of your coverage.

4. Bonus for not making a Claim

When it comes to the no claim bonus (NCB), long-term two-wheeler insurance plans have an advantage over short-term policies, as evidenced by various insurance policies. If the policyholder has not made any claims in the preceding year, an NCB is a discount offered for the next year of the policy. Long-term two-wheeler insurance has better no-claim bonus slabs than short-term two-wheeler policies. For example, ICICI Lombard gives a first-time customer the same NCB discount as their prior policy. So, if customers received a 30% NCB from a previous insurer in the previous year, ICICI Lombard would provide them the same incentive when they buy their first long-term insurance.

5. Long-Term Two-Wheeler Insurance Policy Cancellation/Termination

In some situations, when a policy is cancelled , some insurance firms offer reimbursements to policyholders. For example, ICICI Lombard gives a return up to a particular proportion of the premium for the complete unexpired years in their long-term insurance in the event of loss or theft — a benefit not available with single-year policies.

Take Away

Due to the obvious large number of two-wheelers in India, authorities have a tough time keeping track of any defaults or insurance-related concerns, resulting in a large number of uninsured two-wheelers on Indian roads. This is not only illegal, but it is also extremely hazardous financially. Not renewing two-wheeler insurance on time is usually due to forgetfulness rather than carelessness. As a result, long-term two-wheeler insurance was recently revealed to assist alleviate the inconveniences of having to renew insurance every year. For the next three years, these policies will be in effect.

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