Key Advantages of Buying Long Term Bike Insurance
Read this article to find out the benefits of buying a long term insurance policy for your bike. 1. Insurance renewal, 2. Better discounts, 3. Premium rates, 4. No claim bonus, 5. Cancellation.
Table of Contents
Having at least third-party bike insurance is mandatory according to the Motor Vehicle Act. Insuring your bike will not only help you protect your bike but also protect yourself from the financial liabilities that come along with owning a bike. Your bike insurance can cover you from costs that are incurred by bike repairs but also the damages incurred by a third party such as bodily injuries, disability, death or property damage due to an accident involving your two-wheeler.
What Is a Long Term Bike Insurance Policy?
Long term insurance is nothing but an insurance policy that has a policy term of longer than one year. Different insurance companies offer different plans for the number of policy years. But generally, a long term policy lasts up to 3-5 years. Buying a long term bike insurance policy will eliminate the effort of having to renew it every year. Please note that it is mandatory for all new bike owners to have a long-term third party bike insurance plan which is valid for 5 years.
Why Should You Buy a Long Term Bike Insurance Policy?
When you purchase bike insurance, it is important to renew it regularly on time. A normal insurance policy should be renewed on an annual basis. Not renewing your insurance policy may lead to legal complications as it is mandatory to own at least a third party insurance policy for your bike. Having a long term bike insurance policy will reduce your need to annually renew it along with various other benefits such as -
-
No Renewal Hassle
Since long term bike insurance offers coverage for a longer-term, it eliminates the requirement of renewing the policy on an annual basis. Gathering documents every year and renewing them involves quite a bit of effort and could be tedious. In this case, long term insurance has a clear upper hand over short term insurance policies.
You may also like to read:- Disadvantages Of Not Renewing Bike Insurance
-
Premium Rates For Long Term Bike Insurance
The IRDAI (Insurance Regulatory and Development Authority of India) increases the cost of the third-party insurance premium on a yearly basis. Purchasing a long-term insurance policy will help you to save money on your bike insurance premium as you have to pay in a single instalment. Therefore, you don’t have to pay the increased cost of the premium every year at the time of renewal.
-
No Claim Bonus In Long Term Bike Insurance
The No claim bonus component is comparatively higher in a long term bike insurance policy than a short term policy. In a multi-year insurance policy, the no claim bonus is still provided to the policyholder even if he/she claims insurance during the term of the policy. But, the company will not be providing any bonus if the number of claims made is greater than 3. Some bike insurance providers even offer NCB in incremental criteria. The discount percentage depends on the number of claims made by the policyholder.
-
Cancellation Of Long Term Bike Insurance Policy
In case you cancel the long term insurance policy, you will be subjected to receive a complete or partial refund depending on the terms and conditions listed in your bike insurance policy. Single year policies usually don’t provide this benefit.
Also Read:- How To Renew Two-Wheeler Insurance After Expiry?
Take Away
Having at least a third-party bike insurance policy is compulsory according to the Motor Vehicle Act to legally ride your bike on the road. But, the government has not made it compulsory for every new owner to purchase a long term third-party bike insurance plan of 5 years. If you are planning to sell your bike within 3 years, then a long term policy is not suitable for your bike. Long term insurance policy is beneficial for bikes that are new or the ones that you have plans for keeping for longer than 3 years. Make sure you carefully evaluate your needs before finalizing the terms of your bike insurance and ride safe.
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.
