Two-wheeler insurance is mandatory by law. Yet only 25% of bikers ride an insured two-wheeler. What exactly is the problem? Are people just not interested in having a two-wheeler insurance? Or are they too lazy in renewing their lapsed policy?
With a long-term or multi-year two-wheeler insurance policy, you enjoy pure convenience and can be completely stress-free. In fact, you get more benefits. Want to know them all? Read on to find out why long-term two-wheeler insurance is the latest buzz in the insurance world and what it has in store for all you bikers out there.
1. Save on Premiums
Yup! That’s what all insurance seekers want! Every year, the IRDAI raises third-party insurance premiums by approximately 20 per cent. When you buy long-term insurance cover, you have an advantage. Once you buy the policy, for consecutive three years, you escape the annual third-party rate hikes.
All you have to do is pay a cumulative premium for three years. Having long-term insurance in place is helpful because the premium cannot be revised during the policy tenure.
Here, you can save up to 20 – 40% on premiums keeping in mind that you can skip the IRDAI revisions on premiums that happen annually.
2. Protect Longer Without the Stress
In life we have too many things to be bothered about. In your busy schedules, the task of renewing your two-wheeler policy once a year can probably slip from your mind.
That doesn’t mean you put your bike and yourself at risk by riding on roads without an active insurance policy.
Worrying about your policy getting lapsed should be the last thing on your mind. For that, a long-term two-wheeler insurance can help. It eliminates the hassles of yearly renewals.
On buying a long-term cover, you do not have to worry about renewing your policy for up to three years. You actually have just one thing less to remember.
In 2014, the Insurance Regulatory and Development Authority of India (IRDAI) permitted the introduction of long-term cover. This was to encourage owners of two-wheelers to buy compulsory third-party insurance. (So you can imagine that majority of people were and even now are still not having even third-party liability insurance which is mandatory by law).
With the long-term cover, for two - three years, you financially protect your vehicle against damages and losses.
No yearly inspections. No annoying renewal reminders or phone calls. Absolutely 0% stress for three years!
For people with multiple two-wheelers, long-term insurance is a boon.
3. Dodge the Paperwork
If you opt for a single year policy, you would receive the renewed policy document each year on renewal. Searching for the best deal, buying one, taking print outs, signing them and sending them back to the insurance company. Even though it’s once a year, this rigorous and monotonous process is annoying, isn’t it?
If maintaining loads of paperwork for bike insurance renewal bothers you every year, then don’t you think, a long-term cover is the solution?
The long-term bike insurance policy frees you from the tedious paperwork because when you purchase the policy at the start, a single policy document is valid for the next two or three years depending on the policy you choose.
4. Bridge the Gap
Forgetting to renew your policy can indeed turn out to be troublesome. In single year two-wheeler insurance, once your policy has lapsed, you have to go through endless ordeals to get coverage at renewal.
Some insurance providers may want to inspect the vehicle before committing to a cover. Only after checking the condition of the vehicle, they allot it with a ‘recommended’ status, which means it is eligible for receiving coverage by the insurance company. In case your vehicle is not in a good shape, they may directly reject and refrain from insuring your vehicle. Or they may perhaps offer you a lower Insured Declared Value (IDV).
With a comprehensive long-term two-wheeler insurance, you are insured for an extended period and there is seldom a gap in coverage. Besides, you have protection from third-party liability, damages, losses caused due to natural and man-made disasters and theft while the policy is in force.
5. Better No-Claim Bonus Discount
No-Claim Bonus is the discount you receive on your own-damage premium for every single claim-free year. So, if it all you happen to be a fabulous and safe driver, you’re in for a treat. The more the number of consecutive claim-free years you have, the higher the NCB percentage discount you can accumulate for the next renewal.
Don’t get confused. It’s really simple.
The concept of NCB is applicable to even long-term two-wheeler insurance.
When you choose a yearly renewal policy, you lose the no-claims bonus (NCB) if you make even a single claim.
However, with a long-term two-wheeler insurance policy, you not only claim the NCB but also get a higher NCB as compared to single-year policies (see we told you that you’re grabbing a great deal!)
Some insurers lock the No-Claim Bonus period for the entire policy period that is three years. This means you that supposing you are eligible to earn a NCB of 25% discount, you get it for all the three years.
On the contrary there are certain insurers who offer you NCB on an incremental basis.
Recommended Read: To know details of how NCB works in long-term two-wheeler insurance, you can read this article.
One should stop seeing two-wheeler insurance as a compulsion. It should be approached as a safety instrument to protect you financially. These days, two-wheeler insurance providers offer various deals. For instance, you get further discounts on premiums for two-wheelers equipped with approved anti-theft devices, cashless servicing in over 2,000 garages, add-on covers for electrical and non-electrical items, and more. All of this, in addition to the long-term insurance benefit, makes it a good deal.
With the IRDA giving the green signal, many insurers are now providing long-term third-party two-wheeler insurance. In fact, some insurers are also coming up with comprehensive covers. These plans are valid for two to three years.
Note that very soon more insurance companies are expected to hop onto the long-term two-wheeler insurance bus. So, accordingly as and when insurance companies launch their plans, this post will be updated.