General notion attached with buying two-wheelers in India is that one does not see the need of renewing insurance for the same. As per GIC (General Insurance Council), 60 percent of motor wheelers are not insured in India and most of them are two-wheelers. The reason behind the same is that one tends to forget the renewal of their insurance as the process itself is very tedious and dreary.
But, with the ever-changing and growing country now there is a policy of new long-term two wheeler insurance which covers your vehicle for up to three years. The overall policy by IRDAI (Indian Regulatory and Development Authority of India) is for the benefit of two-wheeler owners to give them the long-term protection and to avoid the forgetfulness associated with renewal while covering their financial losses under unforeseen circumstances
Living life without the worry of motor insurance policy renewal sounds really good. The time-period of three years is pretty good amount of time to renew your policy. It is burdensome to keep track of annual renewal of policies plus this also avoids the urgency of arranging the sum amount for the renewal.
No unnecessary risks and losses
A good three years of coverage avoids the risk of riding without any insurance policy. In the scenario where policy expiries within a short period of time, there is this unnecessary pestering of traffic police and hefty fines associated thereafter. Also, one does not have to carry renewed documents every year with three years of renewal policy.
Premium rate is blocked for three years
Premiums associated with third party liability insurance are revised on a yearly basis where you end up with a slightly higher premium. Whereas with three-year two-wheeler insurance policy there is a lock period for premium and the scenario of price revision cycle is avoided.
Policy cancellation simplified
There is no lock-in period associated with the policy. Just like one year policy one can opt to cancel multi-year cover during anytime of the policy and you are liable to get refund amount for the utilized time.
Additional benefits on no-claim bonus
The long-term two wheeler policies avoid the case of NIL no-claim bonus in the scenario were the policyholder makes only one claim in the period of three months.
Avoid problems of renewing a lapsed policy
If the policy has lapsed, many companies insist on getting the vehicle inspected to determine its condition prior to renewing the policy. With the long-term two wheeler insurance plan the policy does not have to be renewed for the tenure the policy is for.
Discount on own damage premium
There is an additional discount associated with long-term two wheeler insurance policy where the administration and policy-issuing cost is reduced in the long run, so the similar saving by insurance company is offered to the customer in terms of an additional discount on own damage. As the premium rates for general insurance are determined by the policy regulator, the premium rate per annum for yearly and long term policies is the same. However, customers can request the insurance company, broking firm, or agent for a discount and chances of getting deeper discounts on long term policies vis-a-vis one-year policies.
There is also a flip side attached to this policy wherein if market premiums go down in future, people with long-term policies will be locked into a higher rate. They will also not be able to perk up the quality of cover during the tenure of the long-term insurance. However, going by the rising inflation one can safely say that prices are never going to come down. So, go buy the long term two wheeler insurance online and buy yourself the peace of mind.