From September 2018, the Insurance Regulatory Authority of India (IRDAI), following a Supreme Court order, made it compulsory for all bike owners to buy a long-term two-wheeler insurance policy. A long-term two-wheeler insurance plan offers insurance protection against any damage or loss to your two-wheeler for more than one year.
Long-term two-wheeler insurance offers all the benefits of a regular two-wheeler insurance plan. For instance, the policyholder can avail of more extended coverage, lower premium, no-claim bonus, and additional discounts for at least five years from the date of purchase.
The best part about a long-term two wheeler insurance online is that you can avoid the hassle of the yearly renewal process.
Here are the benefits of getting long-term bike insurance:
Lower insurance premiums
The long-term two-wheeler insurance premium is regulated by the Insurance Regulatory and Development Authority (IRDAI). It means that insurance companies in India cannot offer the basic third-party insurance premium at a higher cost than what is recommended by IRDAI.
You may observe up to a 20% increase in your regular two-wheeler insurance premium by the IRDAI. For instance, if you purchase a two-wheeler insurance plan that matures after one year, you will have to pay up to a 20% higher premium upon renewal.
However, that is not the case with long-term two-wheeler insurance or multi-year policy. If you purchase a five-year two-wheeler insurance plan, the insurance remains constant through the insurance tenure.
No need to go through a challenging renewal process
The downside of a regular bike insurance plan is that it involves a lengthy and rigorous renewal process when it expires. In contrast, you can avoid such challenges with a long-term two-wheeler insurance plan. In addition, having a period of up to five years in your insurance coverage, you will not have to renew your insurance every year.
Avoid insurance policy lapse
It has been made mandatory by law to have a comprehensive two-wheeler insurance plan. It means that riding a bike without one is a punishable offence, leading to hefty penalties and even imprisonment. So, when your insurance policy lapses, it becomes imperative to purchase a new policy and follow lengthy paperwork and inspection all over again.
But, you can avoid all these headaches by getting a long-term two-wheeler insurance policy. Get a long-term insurance plan and protect yourself against the repercussions caused by the policy lapse for several years.
No Claim Bonus (NCB)
No Claim Bonus plays a crucial role in reducing your two-wheeler insurance premium amount if you do not claim the insurance amount in a financial year. For example, when you act as a responsible rider and do not claim the insurance policy for a certain period, you are eligible to receive a reward in the form of NCB from your insurer.
As a policyholder, you can receive up to a 50% reduction in your premium during your two-wheeler insurance renewal. The best thing about not claiming your insurance is that if you switch your current insurance policy to a new one, you can also transfer your existing NCB. It is worth noting that the percentage of the No Claim Bonus increases every year you do not register for the claim.
Insurance cover remains intact for a long time
When you buy a two-wheeler insurance plan, the policy will provide financial protection in the event of accidents. However, if you buy a long-term comprehensive insurance policy, it will protect against accidents and theft, vandalism, and calamities. If you look for a short-term two-wheeler insurance policy, you will only benefit from this coverage for a year, but a long-term insurance policy will offer the insurance benefits for up to five years.
Easy policy cancellation
Much of a long-term two-wheeler insurance policy’s popularity stems from the fact that you can cancel it anytime you want. After entering into a bike insurance policy, you may find that the claim settlement process is complex, and the insurer has unsatisfactory services. In such cases, you can cancel your insurance policy and switch to one that offers maximum insurance coverage and benefits.
Your current insurance provider will refund you the unutilized insurance premium amount. Furthermore, if you have earned a No Claim Bonus, you can easily transfer it to your new insurer and avail of benefits upon renewal. To do so, you will need to obtain an NCB certificate from your current insurance company.
Unlike a regular two-wheeler insurance plan ensure by Mahindra, a long-term two-insurance policy is a comprehensive plan that offers maximum coverage and benefits for up to five years.