Why You Should Buy Long-Term Two Wheeler Insurance Policy

Some people just love to ride two-wheelers. They feel pumped up when they ride; it gives them the adrenaline rush. However, many of them often forget to renew the insurance cover. Are you one of those people? Don’t worry; be happy, as we have good news for you.

Lately, some insurers have launched long-term 2-wheeler insurance policies. These policies cover your two-wheelers for up to three years as compared to a traditional cover that is valid for only one year. As per the orders by IRDAI, it is mandatory to buy insurance that covers third parties as well. In order to encourage two-wheeler owners to buy a compulsory third-party cover, IRDA of India has given green signal to long-term two-wheeler insurance policies. It will help to tackle the problem of non-renewal of 2 wheeler insurance policies. Buying a long-term bike insurance policy is not compulsory; it is an option as of now.

Consider long term bike insurance policy offers certain benefits. The following are the benefits offered by a long-term two wheeler insurance policy.

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The Pros

  • It is Convenient A long-term two-wheeler insurance plan is convenient and hassle-free, as you don’t have to renew it on the yearly basis. For some, it is difficult to remember the renewal date of insurance policies. Some people own more than one policy; it is more difficult for them to keep a track of their renewal dates. Some people fail to renew their insurance policy due to lack of free time or their busy schedules. When you buy a long-term 2 wheeler insurance policy, you are tension-free for the next two to three years, according to your insurance plan.
  • It keeps Non- Renewal Related Risks at Bay When you fail to renew your 2 wheeler insurance policy, you are exposed to certain risks. God forbid, if your vehicle is stolen or it meets with an accident, and the status of your insurance policy is not active. You will have to pay for the damages from your own pocket. These unpleasant situations can be avoided for three years by opting for a long-term two-wheeler insurance policy.
  • Bid Farewell to the Problems of Renewing a Lapsed Policy When you don’t renew your insurance policy on time, it lapses. In such a case, your insurance company will get your vehicle inspected in order to understand its condition before the renewal of the policy. Plus, additional charges as fine may also apply. If you buy a long-term two-wheeler insurance policy, then you can avoid the trouble of getting your vehicle re-inspected because of a lapsed policy.
  • Premium Rate is Fixed for Three Years This is the major reason why more and more two-wheeler owners go for long-term insurance policies. It saves you from the yearly hikes on the third-party premium rates. The premium rates are frozen by the insurance regulatory, which generally increase by 10-15 percent annually. Also, on the basis of their claims, policy experience, policy coverage, and other reasons, insurers can increase the own damage premium time to time.
  • Save on Own Damage Premium Rates As part of the premium for long-term two-wheeler insurance policies, insurers are offering discounts on the own-damage section of the premium. The reason behind is that a long-term insurance policy helps insurance companies to cut down the admin and policy issuing costs. This is the reason that you are able to save more. When your buy long-term insurance plans, you feel free to ask for discounts. As a customer, seeking information is your right.
  • The Perks of No Claim Bonus (NCB)One more reason to prefer a long-term insurance policy over traditional one-year policy is that it gives you an added advantage when it comes to no claim bonus. Some insurance companies offer this advantage even if you choose to switch to another insurer.  In other words, your NCB is kept protected.

What if a Long-term Policy is Cancelled or Terminated? Just like a traditional one-year policy, the claim amount would be payable as per the coverage provided by the policy at any time during the policy tenure. The policy would not be terminated after the payment of claim amount. Only in the case of total loss or theft, the policy will be terminated.

In such a situation, a percentage of the premium for an unexpired time period will be refunded, when it comes to long-term policies.

The Cons

  • You Won’t be Able to Enjoy Lower Premium Rates A long-term two-wheeler insurance policy saves you from the annually changing premium rates. The downside is that if the premium rates have lower down, you would not be able to reap the benefits, as your premium rates would be fixed already.
  • The Discount Rates May Vary The discount rates vary from insurer to insurer and case to case. You have to do your own research and comparisons to know the costs and discounts. A long-term two-wheeler insurance plan is the latest product in the insurance industry. As a result, terms and conditions may vary from insurer to insurer. For instance, the NCB structure of a long-term policy is not yet decided by the IRDA. So, there could be variations in the NCB offered by different insurers.

How to Buy the Best Long-term Two Wheeler Insurance Policy? It is as simple as browsing the Internet. All you have to do is compare the policy on the basis of your personal preferences and requirements. Compare insurance online and get the best deal.

Wrapping it up! A long-term two-wheeler insurance policy is a new product in the insurance sector. It is a matter of time that it gets properly regulated. It has pros as well as cons. All you need is to compare its pros and cons with a traditional one-year policy and see what weights more on your comparison scale. Buy the most appropriate one.

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