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The Advantages of Long-Term Two-Wheeler Insurance

Updated On Apr 29, 2022

In India, two-wheelers have the highest incidence of uninsured vehicles. One of the main reasons for this was that two-wheeler insurance was only available for a year until recently.

In India, two-wheelers have the highest incidence of uninsured vehicles. One of the main reasons for this was that two-wheeler insurance was only available for a year until recently. To address this issue, the Insurance Regulatory and Development Authority of India (IRDAI) gave insurers permission to provide long-term plans for two-wheelers for a maximum of three years last year

The Advantages of Long-Term Two-Wheeler Insurance

Long-Term Two-Wheeler Insurance Benefits

Offers of Discounts

Discounts on long-term two-wheeler motor insurance are available to policyholders. Insurers provide various discounts and incentives to consumers because long-term plans allow them to save money on administrative expenditures. This is in addition to the underwriting advantages and no-claim incentive offered by the company. While third-party liability insurance is required by law, personal damage coverage is not. With their three-year third-party insurance plans, insurers like New India Assurance also give upfront reductions for their own damage insurance.

Insurance Renewals for Two-Wheelers for a Long Time

It is far more convenient to have to renew a policy every two or three years rather than every year, especially if one has many policies. When a policy expires, the policyholder must go through a lengthy process to renew it. If an accident occurs after the policyholder's renewal date, he or she will not be able to file a claim. In addition, before renewing or providing new insurance, the insurer may require that the vehicle be examined. Furthermore, if your insurance has lapsed for a long period, you may have difficulty finding an insurer willing to give coverage for your vehicle.

Long-Term Two-Wheeled Insurance Premium Rates

Third-party insurance premiums have been steadily rising over the last few years. Every year, IRDAI increases prices for third-party liability insurance by 20%. If you had to buy long-term car insurance, your prices would not fluctuate for the first three years.

Bonus for not Filing a Claim

When it comes to the no claim bonus (NCB), long-term two-wheeler insurance policies have an advantage over short-term policies, as several insurance policies have shown. An NCB is a reduction granted for the following year of the policy if the policyholder has not made any claims in the previous year. Long-term two-wheeler insurance policies provide better no-claim bonus slabs than short-term two-wheeler insurance policies. For instance, ICICI Lombard offers new clients the same NCB discount as former policyholders. So, if they received a 30% NCB from a previous insurer the previous year, ICICI Lombard would provide them the same incentive when they buy their first long-term insurance.

Long-Term Two-Wheeled Insurance Policy Cancellation/Termination

In some situations, when a policy is canceled, some insurance firms offer reimbursements to policyholders. Under the case of loss or theft, ICICI Lombard, for example, gives a refund of up to a specific proportion of the cost for the whole unexpired years in their long-term insurance – a benefit not available with single-year plans.

Take Away

Numerous advantages come with long-term motorbike insurance coverage. Premium rate deflation is uncommon and should not be feared. A multi-year bike insurance coverage is the finest thing you can invest in to ride your two-wheeler with confidence if you are not going to sell your vehicle anytime soon.

Also Read: Factors Affecting the Cost of Your Reliance Car Insurance Policy


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.
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