3 Major Benefits of Long-Term Two-Wheeler Insurance

Today, there is a huge number of two-wheelers plying on Indian roads; from personal vehicles to taxi-bikes. It is a simple fact that two-wheelers offer an easy mode of transport that is simpler to maintain, handle, and is best for dealing with rush hour traffic as compared to four wheelers. However, it is also seen that often two-wheeler owners neglect or forget to get their two-wheeler insurance renewed on time, resulting in several uninsured vehicles on the roads.

Even though the Motor Vehicle Act of 1988 has made it mandatory for all vehicle owners to have their vehicles insured with at least a third-party cover. Before getting into the benefits of long-term insurance, it is important to understand the two types of coverage that are available in two-wheeler insurance: -

Types of two-wheeler insurance based on coverage

There are basically two types of two-wheeler insurance policies based on the coverage they offer. These are:

1. Third Party Insurance

This is the minimum coverage that a vehicle owner must have, according to the Motor Vehicle Act of 1988. Under this type of insurance policy, in case of an accident or collision, the insured is offered protection against liabilities arising from damage, injury, or death caused to a third party. This policy does not provide coverage for damage incurred by your own vehicle.

2. Comprehensive Insurance Cover

As the name suggests, this type of policy offers comprehensive coverage to the insured vehicle. It includes the third-party coverage, and also offers some extra benefits. Under a comprehensive two-wheeler insurance policy, you get protection from own damage as well. Other benefits of a comprehensive two-wheeler policy include coverage for damage incurred by the vehicle by man-made acts like theft, vandalism, or riots, or by natural disasters like flood, earthquakes, fire, etc. You also have the option to enhance your coverage via various add-ons and riders offered by most insurers.

More about Two-Wheeler Insurance Policy

The sheer volume of two-wheelers in the country makes it quite difficult for authorities to monitor any defaults or insurance related issues, which subsequently leads to numerous uninsured two-wheelers plying on Indian roads. Apart from being punishable under the law, this is also very risky in a purely financial regard as well. More than neglect, it is often forgetfulness behind not renewing two-wheeler insurance on time. Seeing this, long-term two-wheeler insurance has recently been announced to help reduce the hassles of renewing insurance every year. These policies are active for three years. The hassles of renewing policies every year is greatly reduced with these policies, and as you pay the premium upfront, they also offer some extra advantages.

Benefits of Long-Term Two-Wheeler Insurance Policies

Buying a long term two-wheeler insurance policy offers several advantages, some of which are as follows:

  • Convenience

The best feature is that long term insurance precludes the process of renewal for every year, as long term policy is bought for 3 years.

  • Lower premium

Since you pay the entire premium upfront, you end up paying a lower amount. The savings on administrative costs to the insurer is passed on to you as the insured in the form of discounts. This is especially true for the own damage provision in your policy. Additionally, you can enjoy the benefit of a frozen premium for the entire tenure of your policy.

  • Discounts Offered

The entire premium for a long-term insurance plan is paid upfront, which is, of course, a higher sum than the premium of a regular insurance policy. Fact is that with long-term insurance, administrative costs are reduced for the insurer, so they are also able to offer the insured some extra benefits and discounts to help ease the burden of having to pay the entire premium amount in one go. Also, the premium is immune from market fluctuations, so you also get the benefit of a frozen premium.

  • Long-Term Two-Wheeler Insurance Renewals

Not only is long-term insurance easy to buy, but it also frees you from the burden of annual renewals and having to look for a good deal every time. You only have to get the insurance at the time of purchase and then after 3 or 5 years, based on the tenure you choose.

  • Cancellation of Two-Wheeler Insurance Policy

If you find a better policy, you can get your present insurance cancelled at any time and you will receive the remaining unused premium as a refund from the insurer. The NCB you have can also be transferred to the new policy if you buy the new one before withdrawing from the current policy.

There are a lot of benefits that come with long term two-wheeler insurance, which is why you should definitely consider investing in one for your bike!
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