Long-term two-wheeler insurance: Know the benefits
Irdai has recently made five-year third-party insurance mandatory for new two-wheeler owners
With the rise in the number of vehicles on the road, the rate of accidents has increased. As per National Crime Records Bureau (NCRB) data, despite the Covid-19 lockdown, India recorded 1.2 lakh cases of deaths due to road accidents in 2020. A big share of those killed in road accidents were two-wheeler riders. That’s why getting insurance for a two-wheeler is very important. Unfortunately many people consider two-wheeler insurance as a bad investment. As a result, a large number of two-wheelers are playing in the country without a valid insurance policy. To check this tendency IRDAI has recently made five-year third-party insurance mandatory for new two-wheeler owners. But is it beneficial for existing two-wheeler owners? Long-term two-wheeler insurance comes with many benefits. Let’s take a look:
1. Save on premiums
A long-term bike insurance policy is cost-effective as it avoids any increase in the annual premium. In addition, most of the insurance companies offer discounts on premiums charged on long-term policies.
2. No claim bonus benefits
Long-term insurance policy is offered with a higher quantum of no claim bonus (NCB) discount compared to a short-term insurance policy. The discount can go up to 20% for the first claim-free policy year.
3. Less stress
In terms of policy renewal, for long-term two-wheeler insurance it requires premium payment once in three or five years. That’s why you do not have to worry about renewing your policy every year.
4. Long-term protection
Long-term two-wheeler insurance means long-term protection. In case of theft or an accident, the insurance provides coverage for longer than a year.
5. Cancel policy anytime
In most cases, if your current plan does not meet your expectations, you can terminate the policy before the expiry date. In this situation you will get a refund for the remaining policy tenure. At the same time, you can also port to another insurer without any hassle.
6. More rider facility
Add-ons come with benefits at a nominal extra charge and each one of them serves a specific purpose. Compared to long-term, short-term bike insurance policies provide you with more add-ons and you can make changes to these riders every year according to your needs.