Motor law in India makes third-party insurance policy mandatory since it covers the liability in case of an accident. The three-year tenure will reduce the cost of issuing policies, administering them and follow-ups for renewals. This could also lead to lower premiums as insurers could pass on the savings to the customers.
The insured gets a 30% discount on the three-year cover and will be entitled to no-claim bonuses post the tenure. Insurance companies offer discounts of 20% and 30% on two-year and three-year policies respectively. You could also save on premiums if you buy a long-term third-party liability cover as IRDAI hikes third-party cover tariffs by 20% every year.
Benefits of Long Term Bike Insurance
- Convenience
In today’s hectic lifestyle and so many EMIs to pay one can easily miss the deadline for a bike insurance renewal. Long-term two-wheeler insurance addresses this very issue by providing a cover for three years which removes the need for renewal every year.
- Avoiding Issues Related To Non-renewal Of Lapsed Policy
Lapsed policyholders are subject to certain risks in case of non-renewal of policy or till the policy is restored by paying the premium. Any motorist whose bike insurance renewal has lapsed would not be eligible for reimbursement in case of the vehicle being stolen or damaged. The insurance company can demand their right to get the entire vehicle checked all over again in case of a lapse. The motorists would then have to bear the entire financial loss themselves. This can be clearly avoided for three years with the purchase of long-term motor insurance.
- Discount On Own Damage Premium
Insurance companies have started offering a discount on the damaged parts with a premium. They can do this to save the costs associated with administrative and issuing costs.
- Premiums Are Frozen For Three Years
Long-term bike insurance can save you from the annual hike in the third-party premium rates which are fixed by the IRDAI, generally, 10% to 15% hike is an average. Based on their own experience, insurance companies can also raise their premiums for own damage from time to time.
- No Claim Bonus Advantage
On the parameter of a No-Claim Bonus [NCB], some insurance companies mention that long-term insurance for two-wheelers scores over one-year policy, but the NCB structure is different in case of renewal of a long-term policy and one-year policy.
One main advantage of buying long-term insurance is that you need not worry about renewing your policy annually. A break in renewal can delay a policy purchase process in future. Once the policy lapses, most insurance companies insist on inspecting the vehicle before renewing it or issuing a fresh policy. Long-term bike insurance is worth considering due to the advantages it offers that outweigh the disadvantages.
Tip – Always secure your bike with a reliable insurance provider like Bharti AXA for the security & assurance of your claims.