Long-term two-wheeler insurance : And it’s advantages 2022

Are you one of the many drivers who adore their motorcycle but consistently forget to renew their two-wheeler insurance? Long-term two-wheeler insurance can be the answer to your problems if this is the case.
In the world of two-wheelers, it is common knowledge that more than 67 percent of India’s approximately 10 million bikes and scooters lack insurance. Due to the requirement that insurance is purchased when buying a two-wheeler, two-wheelers are insured as they leave the showroom. However, it has been observed that the majority of drivers do not have auto insurance.

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To address the problem of two-wheeler insurance not being renewed, the Insurance Regulatory and Development Authority of India (IRDA) has developed three-year long-term two-wheeler insurance policies. The first general insurance company to start doing business was New India Assurance. It is predicted that additional two-wheeler insurance carriers may launch similar products in the future.

The advantages of long-term bike insurance, such as premium breaks and defense against yearly increases in the third party (TP), far outweigh the disadvantages.

Long-Term Bike Insurance Benefits

You don’t need to renew your policy every year because long-term two-wheeler insurance covers you for three years. With so many EMIs due today, it’s simple to forget about the two-wheeler insurance deadline in today’s hectic environment. This is precisely the purpose of long-term two-wheeler insurance.
Lapsed policyholders are subject to certain risks if the policy is not renewed or until the coverage is reinstated by paying the payment. If a driver’s two-wheeler insurance expires, they will not be entitled to compensation if their vehicle is stolen or damaged. The complete financial loss would therefore be the driver’s responsibility.

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Avoid Problems When Renewal a Lapsed Policy:

The insurance provider is authorized to request a second inspection of the vehicle after a two-wheeler insurance policy expires. Enroll in long-term two-wheeler insurance to avoid headaches and enjoy three years of worry-free living.

Own Damage Premium Discount:

Insurance companies have stepped forward to provide a discount on the cost of the policy’s own damage coverage. They can accomplish this because they can reduce their spending on administrative and issuing fees. Three years of premium freeze

The Insurance Regulatory and Development Authority of India (IRDA), which sets the third-party premium rates, normally raises these rates every year by 10% to 15%. Long-term insurance for two-wheelers shields drivers from these hikes. Occasionally, depending on their own experience, insurance companies may increase their prices for their own harm. By acquiring long-term insurance for their two-wheelers, drivers can avoid this issue.

No Claim Bonus Benefit

According to several insurance companies, two-wheeler long-term insurance performs better than one-year coverage in terms of the No Claim Bonus (NCB). Industry analysts claim that when a long-term policy is extended as opposed to a one-year policy, the NCB structure is different.

Disadvantages of Long-Term Two Wheeler Insurance

Long-term two-wheeler insurance has the drawback of preventing the insured from taking advantage of changes in the price of the premium; for instance, if the cost decreases, the insured will not be able to benefit.

The insured declared value (IDV) and long-term two-wheeler insurance premiums should be contrasted with those of a one-year policy. In the event of a loss or damage to the vehicle in the second or third year, the policyholder would receive the depreciated IDV of the bike rather than the IDV on which the premium for long-term two-wheeler insurance was paid. The IDV depreciates for the two-wheeler according to the IRDA’s depreciation table for regular one-year policies.

For instance, if the IDV for a bike is Rs 50,000 at the beginning of the first year of a three-year long-term policy, the IDV claim for the first year would equal Rs 50,000, and the IDV for the second year would be Rs 45, 000, and the IDV for the third year would be Rs 40, 500.

The advantages of long-term two-wheeler insurance outweigh the disadvantages.

One would be tempted to think that it is more of a disadvantage than a benefit given the aforementioned drawbacks. But the ease of paying premiums for a period of two to three years at a time minimizes paperwork and the need to remember to pay on time

The possibility of losing a No Claim Bonus (NCB) if even a single claim is made throughout the year shows that the benefits far outweigh the drawbacks.

Buyers should therefore do their homework and weigh their options in light of their unique needs and preferences.

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