The Advantages of Long-Term Two-Wheeler Insurance
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.
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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
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