Did you know that 2/3rd of the two-wheelers in India are uninsured? Most of the brand new two-wheelers are purchased out of the showroom along with insurance for the mandatory third party liability coverage. But, by the second year upon renewal, they fall out of the insurance net.
You might be one of those persons who love their esteemed asset, but just forget to renew its insurance policy. Renewing the insurance policy of your bike might seem like a boring job for you.
Whatever be the case, long-term two wheeler insurance is now available and introduced by the IRDA in order to curb non-renewals of policy.
What is long-term two-wheeler insurance?
It is a multi-year insurance policy that is offered for an extended period of time ranging from 2 to 3 years. Your coverage is locked in for the entire policy tenure and you do not have to renew after 12 months anymore. Enjoy the extended coverage and never get hassled when the traffic cop stops you next time.
Advantages of Long-Term Two-Wheeler Insurance Policy
It saves you from the hassle of renewing your policy each year. People often forget the renewal dates and lose track of it. Even if they do remember, they often don’t find time or try to avoid renewal for some reason. So, a long term insurance is a clever choice that provides a convenient way of holding the insurance without worrying about renewals.
- Avoid Problems of Non-Renewal
If you forget to renew the policy and suddenly meet with an accident, insurance policy will not come to your rescue and you will regret that you failed to renew your insurance. You eventually would have to bear the entire expenses of damages. A break in the insurance policy will also lead to unnecessary inspection of the bike before renewing the policy again. Also, you would have to forfeit your no-claim bonus. To avoid such non-renewal related risks, long term insurance is very helpful, since you are set for at least 3 years and don’t have to renew.
- Discount on Premium
Perhaps the biggest advantage of all, long-term two-wheeler insurance come with good discounts on the premium amount. The discount varies with each insurance provider. Since long-term insurance helps the insurance company to cut down their administrative costs, these savings are translated to policy-holders as discounts.
- Premium Rate Locked for the Entire Tenure
Annual hikes and rate revisions in the insurance premium amount is inevitable. With long-term insurance policies, you are immune to such revisions in premium rates for the entire policy tenure. You will not be subject to hike in premium each year.
- No-Claim Bonus
Unlike single-year policies, in a long-term plan if you make a claim, you will not lose the no-claim bonus completely and they are subject to certain limits. Also, the discount awarded for each claim-free year in a long-term insurance plan is better than their single-year counterparts. For example, ICICI Lombard awards a 40% discount for long-term insurance plan of 3 claim-free years. Whereas, a single-year insurance policy with claim-free 3 years will yield only 35% discount.