Benefits of Long Term Bike Insurance Policies

Third-party liability insurance for vehicles is a legal mandate in India. Riding a two-wheeler with a policy lapse of even a single day can result in extreme legal action. Therefore, it is a must that the motor insurance policy is renewed timely. In this fast-paced world, it is sometimes difficult to keep track of the policy renewal dates and you may miss out on premium payment. One easy solution to this problem is to opt for two wheeler insurance online Most of the two-wheeler insurance policies in India had to be renewed every year because that was the requirement of the insurance provider until a few years back. This was called the regular two wheeler insurance policy. However, the Insurance and Regulatory authority of India (IRDA), after 2015, gave a green signal to insurers to offer long-term insurance policies for a maximum of three years. Benefits of having a long-term two-wheeler insurance plan 1. Savings The biggest advantage of opting for a long-term insurance policy is that the policyholders can save on premium. Insurers save a lot on the long-term insurance in terms of administrative expenses and policy issuance costs. 2. Convenience It is more convenient to renew a policy after every two or three years than having to renew it every year. This way you can be relieved for a longer stretch of time. You can also save yourself from many hassles, which can happen if you need to renew a lapsed policy. Even if you have set a reminder for policy renewal, it is quite possible that you do not have the time to do so. It could also happen that you already have a prior financial commitment, because of which you will not be able to pay the premium. The result is a lapsed policy. When you have a long-term policy, there is no question of policy lapse at least for three years. 3. Stable Premium Rate The premium rates for third-party insurance are rising every year. The Insurance Regulatory and Development Authority (IRDA) increases the premium for third-party covers by 20% every year. However, if you have opted for a long-term insurance policy, you can avoid these yearly hikes and stay with a stable premium rate for three years. Therefore, the long term two wheeler insurance allows you to freeze-in a low premium rate for all three years. In fact, it is an insulation against the inflation-led hikes. 4. The Advantage of No Claim Bonus (NCB) When it comes to NCB, the long-term insurance policies score above the short-term policies. An NCB is a kind of benefit that the insurance provider offers if the policyholder has not made any claims in the previous years. The insurers mostly offer a higher NCB after the completion of a three-year policy as against the cumulative NCB, which has been accumulated in the short-term policies. 5. Shield-from Non-Renewal Risks There are certain risks associated with the non-renewal of the two-wheeler insurance policies. Not only is it illegal to not have a policy but you are also without financial protection for a certain period. Suppose, if your two-wheeler meets with an accident, is stolen or there is a natural calamity during the period in which your policy lapses, you will not be eligible for any sum insured. In case your policy has already lapsed, please visit our for two wheeler insurance online renewal after expiry Conclusion Long term two wheeler insurance policies have many benefits, as compared to the short-term policies. In fact, paying the cumulative premium for three-years is nothing but a potential investment for the future. You can do online research of the premium payable in case of a long-term policy with the help of a two wheeler insurance premium calculator and make a wise purchase decision.