Monday, February 26, 2024

6 Benefits of A Long-Term Two-Wheeler Insurance

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Are you one of the numerous drivers who enjoy riding their bike but frequently neglect to renew their two-wheeler insurance policy? If this is the case, Long Term Two-wheeler Insurance is the solution.

It is a well-known truth in the world of two-wheelers that over 67 per cent of the roughly 10 crore bikes and scooters in India are uninsured. Two-wheelers are covered when they leave dealerships, which can be ascribed to the necessary clause of purchasing insurance at the time of purchase of two-wheelers; nonetheless, it has been noticed that the majority of drivers do not have their vehicle insured.

To solve the issue of non-renewal of two-wheeler insurance, the Insurance Regulatory and Development Authority of India (IRDA) has created three-year long-term two-wheeler insurance policies. New India Assurance was the first general insurance company to open its doors. Other two-wheeler insurance providers are anticipated to follow with their own products.

Long-term bike insurance policy is worth considering since the benefits, such as premium discounts and protection from yearly rises in the third-party (TP), considerably outweigh the drawbacks.

Here are a few benefits that will undoubtedly persuade you to purchase long-term two-wheeler insurance –

● Savings on Premiums

Long-term insurance for two-wheelers protects drivers from the annual increase in third-party premium rates set by the Insurance Regulatory and Development Authority of India (IRDA), which is typically 10 to 15% on average. Insurance firms might also boost their premiums for personal damage based on their own experience from time to time. Drivers can prevent this problem by purchasing Long-Term insurance for two-wheelers.

2021 Suzuki GIXXER SF 250_ Triton Blue_Silver
2021 Suzuki GIXXER SF 250_ Triton Blue_Silver

The IRDAI (Insurance Regulatory and Development Authority) regulates third-party auto insurance prices. Insurance companies are not permitted to sell basic third-party insurance at a price higher than that set by the IRDAI. However, the regulating agency raises insurance premiums by over 20% each year.

So, if you get a one-year bike insurance policy coverage this year, you will very certainly be obliged to pay a 20% higher price when you renew the policy the following year. This can be avoided by implementing a multi-year policy. For example, if you get 5-year insurance, you will be shielded from premium increases because the rate cannot be increased throughout the policy term.

● No hassle for renewal

The complex renewal process is one of the most prevalent reasons why consumers do not renew their bike insurance. However, while this may have been an issue in the past, two-wheeler insurance online has removed these obstacles.

Many people, however, continue to believe that renewal is a time-consuming and paperwork-intensive process. Multi-year insurance is an excellent option to avoid annual renewals; your vehicle will be insured for 2-5 years, and you will not have to worry about renewing the policy every year.

● Take advantage of the NCB.

No Claim Bonus (NCB) is a discount given by insurance companies to policyholders who have not filed any claims in the previous year. It is a benefit provided by insurance companies to insureds in exchange for adopting safe riding behaviours. If you receive a 20% NCB when renewing a long-term two-wheeler insurance coverage, the NCB will be applied for all consecutive years until the policy expires.

Avoid Penalties and Fines – Riding in absence is a serious offence in India. In addition, if you ever need to file a claim, an expired policy may be a burden. A long-term coverage can protect you from such scenarios and help you avoid paying expensive traffic fines if caught.

● Avoid Policy Lapse

Riding a two-wheeler without a valid third-party or comprehensive insurance policy is a serious offence. It could result in severe consequences, including jail. Furthermore, if the policy expires, you will have to purchase a new coverage and go through the same paperwork and inspection process again. All of this is readily avoidable with the assistance of multi-year insurance coverage. It protects you against the severe repercussions of insurance lapse for numerous years with one purchase.

Renewal of a lapsed bike insurance coverage is a difficult procedure that you should avoid. The policyholder is required to get a new insured declared value (IDV) at the time of renewal, which is established after an inspection of the vehicle. The entire process may take a large amount of time, and you may be obliged to pay a higher value due to an increase in the premium rate. A long-term bike insurance policy coverage can protect you from the risk of policy lapse and allow you to ride without worry for three years.

● Avoid break-in

Assuming you haven’t renewed your insurance in the last two years. Now, if you wish to buy new bike insurance, your insurer may want to inspect your bike because there is a significant gap between the plans. These rules are sometimes referred to as ‘Break-in’ policies.

If the insurance company determines that the bike is not in “insurable” condition, they may reject your application. Even if the request is granted, the insurance premium will be expensive, and the Insured Declared Value (IDV) would suffer. A long-term two-wheeler insurance policy can assist you in avoiding this situation.

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● Discount on own damage premium

Insurance firms have stepped up to offer a reduction on the policy’s own damage portion of the price. They are able to do so because they are able to cut administrative and issuing costs.

Long-term two-wheeler insurance coverage, as seen above, provides a slew of significant benefits. If your two-wheeler insurance renewal is approaching, consider getting a multi-year plan and reaping all of the benefits described above. Long-term two-wheeler insurance policies provide many advantages over short-term policies. In fact, paying the total premium for three years is nothing more than a potential investment.

Author Bio: Smriti Gala works as a Digital Marketing Manager with Coverfox. As her life turned upside down when COVID severely afflicted her family members, Smriti decided to dedicate her expertise towards informing and educating the masses about the importance of health insurance. When she is not actively writing enlightening content, our ‘monk marketer’ likes to meditate, meet new people and explore less travelled territories.

Mohit Soni
Mohit Soni
NOT A Commander, Director, Editor-In-This/ That, CEO, MD, President, Entrepreneur, etc etc. Just a first employee at Thrust Zone with a team of enthusiasts who love car and motorcycles more than anything else in the world, just like I do. Hashtag blessed

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