Benefits Of Purchasing Long-Term Bike Insurance Policy
Know why you should purchase a long-term bike insurance policy to ensure your vehicle's insured while driving it.
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The Motor Vehicle Act in India mandates that all two-wheeler owners have current third-party insurance. The insurance is for a period of more than a year. Your premium stays the same throughout the policy term, allowing you to budget more effectively. If you get annual insurance, you may end up paying a greater premium each year if rates change. This means that when millions of people ride their bikes, they are putting their money on the line. On Indian roadways, there are currently a considerable number of two-wheelers, ranging from personal autos to taxi motorcycles. Two-wheelers, rather than four-wheelers, offer a simple mode of transportation that is easier to maintain, manage and is ideal for navigating rush hour traffic. Two-wheeler owners, on the other hand, frequently disregard or fail to renew their insurance on time, resulting in a huge number of uninsured vehicles on the road.
The Advantages of Buying Long-Term Bike Insurance
The following are some of the numerous advantages that multi-year auto insurance may provide:
1. Premiums can be Slashed Dramatically
The IRDAI regulates the cost of third-party motor vehicle insurance (Insurance Regulatory and Development Authority). Insurance companies are not allowed to charge more than the IRDAI has set for basic third-party insurance. The regulatory agency, on the other hand, boosts insurance premiums by around 20% per year. As a result, if you buy a one-year bike insurance policy this year, you'll virtually certainly have to pay a 20% premium next year when you renew it. This might be avoided by using a multi-year policy. If you get 5-year insurance, for example, you will be protected against premium hikes because the rate cannot be adjusted throughout the policy period.
2. It Shouldn't be Difficult to Renew your Insurance Policy
One of the most common reasons for consumers not renewing their bike insurance is the cumbersome renewal procedure. However, many people still believe that renewal is a time-consuming and paperwork-intensive process. Multi-year insurance is an excellent way to avoid having to renew your coverage every year; your automobile will be protected for two to five years without you having to worry about it.
3. Prevent Policy Inconsistencies
It might lead to serious repercussions, including jail time. Furthermore, after the insurance policy has expired, you will need to obtain new coverage and repeat the paperwork and inspection process. All of this may be prevented with the help of multi-year insurance coverage. With a single purchase, it protects you against the grave consequences of insurance lapse for many years.
4. NCB is being Depleted
If you haven't filed any claims in the past year, you may be eligible for a rate decrease. The NCB is 20% for the first claim-free year, and it can increase to 50% in the fifth claim-free year. If you do not renew your bike insurance during the grace period following the expiration of your prior coverage, you risk losing your NCB.
Take Away
As can be seen above, long-term two-wheeler insurance coverage comes with a host of advantages. If your current insurance plan is set to expire, consider switching to a multi-year plan to enjoy all of the above benefits. As previously stated, long-term two-wheeler insurance policies have a number of benefits. Consider obtaining a multi-year plan if your insurance is about to expire. You will be able to make use of all of the previously mentioned benefits.
Do read - Common Mistakes While Filing Third-party Bike Insurance Claim
Personal Accident Cover In Two Wheeler Insurance
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
