According to the Motor Vehicle Act, every two-wheeler owner in India must always have proper third-party insurance. However, according to a survey by the General Insurance Council, around 60% of the two-wheelers on the road in the country do not have legal insurance coverage. This means that millions of individuals are putting their money in danger every time they ride their bikes.
A long-term two-wheeler insurance policy provides perfect convenience and allows you to be fully stress-free. You gain greater advantages. Do you want to learn about them all? Continue reading to see why long-term two-wheeler insurance is beneficial, and what it has in store for all you riders out there.
The benefits of multi-year bike insurance include:
No annual renewals
Your bike would be covered for five years under long-term coverage. You do not have to renew the policy every year, which eliminates the burden of remembering the renewal dates and incurring a penalty for late renewals.
A long-term insurance plan’s entire payment is paid upfront, which is, of course, a larger sum than the cost of a typical insurance policy. The fact is that because administrative expenses are lower for the insurer with long-term insurance, they are also able to provide the insured with some additional perks and discounts to help lessen the strain of having to pay the entire premium amount in one go. Furthermore, the premium is impervious to market swings, so you benefit from a frozen premium as well.
Because you pay the entire premium upfront, you wind up spending less. The insurer’s administrative savings are passed on to you as the insured in the form of discounts. This is especially true for your policy’s damage clause. You can also enjoy the benefit of a frozen premium for the duration of your policy.
Renewals of Long-Term Two-Wheeler Insurance
Long-term two-wheeler insurance allows you to avoid having to renew your coverage every year; your bike will be protected for two to five years, and you won’t have to worry about it.
Frequency Status Check:
When you buy or renew two wheeler insurance annually, you need to maintain frequent checks in order to know the status of your bike insurance. With multi-year two wheeler insurance, you can avoid performing a bike insurance check to know the status every few months.
Easy policy-cancellation process
The incumbent insurer would return the portion of the premium that was not used. You can also move your current NCB to the new insurer. You must receive an NCB certificate from your current insurer and purchase a new policy from the new bike insurance company before canceling your current coverage. After you submit the NCB certificate to the new insurer, your bonus will be transferred to the new policy.
Bonus for not making a claim
Numerous insurance policies have proven that long-term two-wheeler insurance plans have an advantage over short-term policies when it comes to the no-claim bonus (NCB). An NCB is a discount granted for the next year of the policy if the policyholder has not made any claims in the previous year. Short-term two-wheeler policies have lower no-claim bonus slabs than long-term two-wheeler policies. ICICI Lombard, for example, offers first-time customers the same NCB discount as their previous insurance. So, if a consumer received a 30% NCB from a previous insurer in the previous year, ICICI Lombard will offer the same incentive when they purchase their first long-term insurance policy.
Avoid policy lapses
It is prohibited to ride a two-wheeler without a valid third-party or comprehensive bike insurance policy. It could lead to harsh consequences, including jail time. Furthermore, if the policy expires, you must purchase a new policy and repeat the full paperwork and inspection process. All of this can be easily prevented with the help of long-term insurance coverage. A single purchase protects you against the terrible consequences of an insurance lapse for numerous years.
You cannot ride an uninsured motorcycle in India, and if discovered, you may face a hefty traffic charge. If you are involved in an accident and do not have insurance, you may risk incarceration. If you possess a two-wheeler, you must carry active third-party insurance. Otherwise, every time you ride your bike, you will be exposed to enormous financial hazards. In the event of a mishap, a third party may potentially file legal accusations against you. The five-year mandatory third-party bike insurance policy for new two-wheeler owners solves the problem by lowering the risk.
Long-term two-wheeler insurance has a lot of advantages, which is why you should certainly consider getting one for your bike!