Why More and More People are Opting for Long Term Two-Wheeler Insurance
When you own a two-wheeler or bike, having proper two-wheeler insurance is not just highly advisable, but a mandate. According to the Motor Vehicles Act, any vehicle that is being driven on the Indian roads must be covered by at least a third-party liability insurance.
There is hardly any doubt about the fact that having proper two-wheeler insurance in place can go a long way in protecting you from financial liabilities in case your vehicle sustains loss or damage. At the same time, it also covers you for third party liabilities. Therefore, it is extremely important to get your insurance policy renewed on time, so that you can enjoy uncompromised coverage.
The introduction of Long Term Two-WheelerInsurance
Much more than car insurance, it has been seen that more people fail to get their bike insurance policies renewed on time. To encourage two-wheeler owners to keep their bikes insured, IRDAI announced long term two wheeler insurance a while back, which extends the insurance coverage for up to 3 years, so that the vehicle owner does not have to worry about renewals every year.
The Difference between Regular and Long Term Bike Insurance
The coverage that is offered by both types of insurance policies is generally similar, but there are still a few differences between the two that make long term insurance a more sensible option:
- Coverage period: While regular insurance covers your bike for a year, long term insurance can provide coverage for up to 3 years.
- Frequency of renewal: Regular policies need to be renewed every year; and long term policies, once every 3 years.
- Premium hikes: There is no change in the premium for up to 3 years in case of long term policies.
- Cancellation: If you have made a claim and then decide to cancel your policy, there is no refund in case of a 1-year policy. On the other hand, you get a proportional refund, based on the remaining term if you have a long term policy.
Benefits of Long Term Two Wheeler Insurance
There are many benefits that one can avail when they opt for two-wheeler insurance, which is why this type of coverage has been gaining popularity in recent times. Some of these benefits are:
- Save upfront on premiums: IRDAI hikes the third-party liability portion of premiums by up to 20%, each year. Opting for multi-year insurance, you are protected against these hikes as well as tax. Therefore, in comparison, you save more when you opt for long term policies.
- No yearly renewal hassles: As mentioned, getting your insurance policy renewed on time is very important, and with multi-year policies, you don’t have to worry about renewals, for up to three years.
- Long-term protection: You enjoy long-term protection for your bike for up to three years. You don’t have to worry about expenses or liabilities like third-party or own damage. You will receive one policy document, and that policy will be valid for three years.
With all these benefits on offer, it is quite easy to gauge why more and more people are opting for multi-year two-wheeler insurance policies.
**To understand exactly about the policy coverage, exclusions etc read the Policy Wordings carefully.**