Impact Of Long Term Two Wheeler Insurance
According to recent studies, close to a startling 60% two-wheelers on the Indian roads are uninsured. Lack of proper bike insurance in case of an accident renders the vehicle owner unable to compensate the victim or their family. That is the reason why it is mandatory under the Motor VehiclesAct of 1988 that all vehicle owners to have at least a third party bike insurance cover.
When it comes to two-wheeler insurance, people tend to be much more lax in terms of staying insured and in terms of timely insurance renewals. This has led to the Supreme Court committee on road safety being of the view that insurers should also offer bike owners the option to buy online bike insurance for a policy term of 5 years as well, at least for third party insurance. Another suggestion was to offer car owners the option to buy third party insurance for a period of three years. With this in mind, IRDA too has asked a number of insurance providers to file for long term two-wheeler insurance online and to begin offering the option to the customers.
This is slated to be a very welcome move on the part of the IRDA as it will directly help increase insurance penetration in the market. That means that people will not have to face the hassles of having to renew their insurance policies every year. For two-wheeler insurance, people will have the option of choosing from 5-year third party insurance plans and 3-year comprehensive insurance plans. This move also promises a major impact for the customers as well. Here’s how:
The Ability to Save More Money
When you opt to buy long term online bike insurance, you can get peace of mind for 3 – 5 years. Plus, as you buy the policy once, you get a flat rate for the entire policy term, which is also a hedge against inflation. This can be seen in the insurance prices for the last 5 years. The premium for third party bike insurance has nearly doubled in the last 5 years. So, if you opt for long term two-wheeler insurance online, you can also protect yourself from such premium hikes.
Increase in Availability
Third-party two-wheeler insurance and comprehensive policies have always been two separate categories of insurance, as the former is mandatory by law and the latter is purely the customer's choice to avail 360°protection for themselves and their vehicle. The fact that the third party two-wheeler insurance policies were comparatively lower in price gave intermediaries all the more reason to promote comprehensive plans. However, now, with the introduction of the 5-year options, they started finding third-party covers a lucrative option as well. This has led to increased availability of these products to the customers.
An Increase in Convenience
When consumers opt for long term bike insurance online, they are able to lock in low premium rates. Then, it also offers the benefit of not having to remember impending due dates for the renewal of your bike insurance policies every year. The numerous discounts and benefits of long term insurance should also help with insurance penetration in the market and should motivate vehicle owners to secure their vehicles with the right insurance. This insurance penetration should also help in further lowering the premium rates.
Avoiding Non-Renewal Related Risks
There is no doubt that the 5-year third party insurance or the 3-year comprehensive bike insurance policy terms will come with a date of renewal that you will have to eventually remember. However, you will at least be able to avoid the risks that come with driving an uninsured vehicle for at least three years. For a minimum of three years, you can also avoid the hassles that come with having to renew a lapsed policy, which is at least a respite from yearly renewals.
Another major benefit of opting for long term two-wheeler insurance online is the fact that the rules regarding the No Claim Bonus for long term insurance are much more flexible as compared to the rules for single-year policies. While in a single year policy you lose your NCB once you’ve made a claim, itis not the case with long term insurance, where you only lose a percentage of the No Claim Bonus.
On the whole, long term insurance can offer customers a number of benefits, and can actually help you save a lot of money in the long run.
**To understand exactly about the policy coverage, exclusions etc read the Policy Wordings carefully.**