Two-wheelers have become an indispensable part of our lives as they offer convenience, flexibility, and ease of commuting in congested urban areas.
To mitigate these risks and safeguard your financial interests, it is essential to secure your two-wheeler with a comprehensive yet cheap bike insurance policy. You can also calculate your insurance premium with the help of a two-wheeler insurance premium calculator.
Whether you are a seasoned rider or a new two-wheeler owner, understanding the importance of long-term two-wheeler insurance and the various options available in the financial market can aid you in making informed decisions about your bike insurance policy.
Read this blog to find out more about long-term insurance benefits and more.
What is a Long Term Two Wheeler Insurance Plan?
Securing insurance for your two-wheeler is not just a requirement but a vital step in protecting your valuable asset. With your busy schedules and fast-paced lifestyles, it is easy to overlook or miss renewing your two-wheeler insurance, potentially leading to financial complications due to the lack of this insurance.
To streamline this process and offer a solution, insurance providers now offer long-term two-wheeler insurance plans with extended validity periods. This long-term insurance option is designed to be convenient, time-saving, and cost-effective, providing comprehensive coverage for your two-wheeler against theft, accidents, and damages.
By opting for a long-term plan, you can ensure continuous protection without the hassle of annual renewals. This approach not only offers peace of mind but also safeguards your finances by covering both personal and third-party damages, making it a prudent choice for bike vehicle owners looking for hassle-free insurance solutions.
How Does Long-Term Two-Wheeler Insurance Work?
This relatively recent addition to the Indian insurance market offers plans with extended durations of up to three years. Below are the types of two-wheeler insurance policies are:
- Comprehensive Bike Insurance Plan or Package Policy: This type of policy covers both loss or damage to your insured vehicle and third-party liability.
- Third-Party Two-Wheeler Insurance or ‘Liability Only’ Policy: This type of policy covers damages to third-party property and provides compensation for death or bodily injury to a third party. However, it does not cover damages to your own two-wheeler.
A long-term policy distinguishes itself from a standard two-wheeler policy through its premium payment structure. With a long-term policy, you are required to pay the premium in a single instalment.
Top Advantages of Long-Term Coverage Insurance
To know the long-term insurance benefits, have a look at the following mentions:
Premium Rates
The IRDAI (Insurance Regulatory and Development Authority) is responsible for regulating the rates of third-party motor vehicle insurance in the market. Insurance providers are not permitted to sell basic third-party insurance for bikes at a price higher than the one set by the IRDAI.
If you opt for a one-year bike insurance policy this year, you can expect to pay a higher premium upon renewal the following year. To avoid this annual premium increase, you can consider purchasing long-term two-wheeler insurance online.
Renewals
A long-term two-wheeler insurance policy offers several advantages, including eliminating the need for annual third-party insurance renewals. Keeping track of your insurance policy dates can be challenging with other commitments. However, it’s crucial to remember that an inactive policy means you cannot access the bike insurance benefits.
A long-term policy, such as a two-wheeler policy for 3 years, provides coverage for up to 3 years, eliminating the need for frequent renewals.
Policy Lapse
Riding without a valid third-party or comprehensive insurance for bikes is punishable by law, resulting in penalties and potential imprisonment. Upon policy lapse, you must buy a new policy, complete the paperwork, and undergo inspections again. A long-term two-wheeler insurance policy can prevent these issues.
With a single purchase, you receive continuous long-term coverage insurance for multiple years, avoiding the consequences of policy lapse and the hassle of repeated paperwork and inspections.
No Claim Bonus
Opting for a long-term two-wheeler policy is advantageous to retain your No Claim Bonus (NCB) benefit. With a long-term policy, the risk of losing NCB due to forgetting timely renewals is reduced, eliminating the need to track accumulated NCB annually.
NCB typically starts at 20% for a claim-free year, reaching a maximum of 50%. Some insurers even offer slightly higher NCB for multi-year policies, ensuring you maintain and maximise your NCB benefits hassle-free.
Conclusion
Long-term two-wheeler insurance policies offer several significant benefits, as detailed above. If your insurance for bike renewal is approaching, consider purchasing a multi-year plan to enjoy these advantages. If you don’t plan to sell your vehicle soon, a long-term bike insurance policy is a wise investment for confident riding.
