Long term two wheeler insurance policy helps you to avoid the hassle of going through the renewal process time and time again. A long term policy provides coverage against damages caused to your two wheeler due to any unforeseen events. It is a known fact that two wheelers are more vulnerable to road accidents than other vehicles. To ensure protection from accidents, it is vital to buy a comprehensive two wheeler insurance policy.
Two wheeler insurance which protects an individual and their vehicle and provides security against a wide range of natural and man-made calamities. Apart from this, the vehicle is also protected against damages incurred due to unforeseen situations like theft, personal accident, third party liability and many more.
Benefits of a Long Term Bike Insurance Policy
No Need for Yearly Policy Renewal
An insurance policy for two or three years does not require you remembering the expiry date of the policy and renewing the same every year. It is convenient as you can ride your vehicle without any worries for a period of three years.
Lower Insurance Premium
In a long term insurance policy, per year insurance premium is lower than that of an annual insurance policy. Due to inflation, premium rates tend to rise every year. You can remain immune from the effects of inflation, by purchasing long term bike insurance policy because you pay the premium for three years in advance. You may also avail various benefits opting for a multi-year insurance policy.
Reduced Risk of Policy Lapse
Policy renewals through offline channels can sometimes get complicated. The policyholder has to state a new IDV [Insured Declared Value] of the vehicle after getting the vehicle inspected. A multiyear policy reduces the risk of policy lapse for 2-3 years, and you can be protected at a lower premium for a longer period and do not require two wheeler insurance renewal.
Avail No Claim Bonus
While renewing your two wheeler insurance policy, online or offline, don’t forget to avail the No Claim Bonus [NCB] if you have not made any claims on your policy in the preceding year. It is a benefit given to you from the insurer for adopting safe riding practices. It will be applicable for the subsequent years in case you are buying a multi-year insurance policy.
Avoid Penalties and Fines
In India, riding a two wheeler without a valid insurance policy is a punishable offence. Apart from the legal implications of a bike insurance policy, an insurance plan can also be of great support in times of emergencies that are unpredictable in nature. In the absence of an active insurance policy, you will not be able to file the claims on your policy. A long term two wheeler insurance policy removes the risk of policy lapse for a longer duration. It will also save you from paying unnecessary fines and penalties.
Trouble free Policy Cancellation
A long term motor insurance policy does not bind a policyholder to continue with the same policy till its validity ends. They may choose to withdraw from the same whenever they wish to and they would receive a refund of the unutilized premium. However, it is important to buy a new insurance policy before withdrawing from your existing policy. Also, make sure that even when you buy a new insurance policy you can retain your NCB.
Drawbacks of a Multi Year Insurance Policy
Long term insurance policy can save you from the rise in premium rates because of inflation. However, in case there is a deflation in the premium rates, you will not be able to take any advantage of the same. You might face certain financial loss if you sell off your two wheeler during the tenure of the policy.