Statistical figures convey that the number of scooters and motorcycles on the road have been growing exponentially each year. In India, two wheeler insurance is compulsory as per the Indian Vehicles Act, 1988. If you have purchased a new bike, you must have a bike insurance plan before you can take it out on the road. The rule works in the interest of the safety of two-wheeler riders who are more vulnerable to mishaps on the road when compared to four-wheeler drivers. What’s more, premium of two wheeler insurance plans also entitle you to a host of coverage benefits such as personal accident cover and claim against damages and theft.
Yet, the scene is quite different from what it should ideally be.
A major chunk of bike owners ride with their vehicles uninsured. Bike insurance companies have been facing hurdles of retention and non-renewal upon policy lapse and the reasons could be attributed to endless paperwork, multiple visits to the agent, or stringent vehicle inspections. Keeping these in mind, the Indian Regulatory and Development Authority of India (IRDAI) has come up with long-term two wheeler insurance plans that aim to encourage bike owners to insure their vehicles for up to three years.
Advantages of a Long Term Two Wheeler Insurance
Well, the benefits are many and it looks like long-term plans could change the scene of bike insurance in the coming years. Here’s a quick look at the benefits.
- No Hassle of Yearly Renewal
When you go for a long-term insurance plan from one of the best two wheeler insurance companies, you get the convenience of renewing the policy every three years. With a long-term plan, you don’t need to keep a track of the annual renewal dates of policies and when renewals are well spaced out, it becomes easier to plan other investments.
- Premium Rate Stays Frozen for Multiple Years
Usually, you will find an annual hike in the third party premium rates of popular two wheeler insurance plans. In addition, insurance companies may also increase the premium based on the policy coverage, claim experience, and other factors. With a long-term insurance for your bike, you stay insulated from yearly hikes because you need to pay only once in three years.
- Tiding Over The Risks of Non-Renewal
The period of non-renewal exposes the insured to risks that can mount up to a lot of money. In case the bike is stolen or gets seriously damaged when the policy is in a lapsed state, all the losses will have to be borne by the owner and he will not be eligible for any claim. The chances of such losses get minimized when you opt for one of the latest long-term two wheeler insurance plans.
- Rebate on Own Damage Premium
Some insurance companies offer a rebate on own damage part of the policy premium if you opt for a long-term two wheeler insurance plan with them. Long-term plans could cut down on administrative and policy issuance related costs and companies are able to pass on the benefit to customers. However, the rebate varies from company to company.
- No Inadvertent Cancellation by the Insurance Company
After being issued, a long-term policy cannot be cancelled by the insurance service provider in between the policy duration unless and until the two-wheeler is completely destroyed.
- Cancellation by the Policy Holder is Usually Simple
A multi-year policy can usually be cancelled any time you feel a need to do so during the policy period. You may get a refund for the unutilized period of the policy.
- No Yearly Inspections
When you take a long-term bike insurance plan, there will not be any yearly inspections of your vehicle, renewal reminders, or phone calls. This means you save yourself from a lot of stress for a good three years!
No Claim Bonus
The discount you get on your own damage premium each time you have a claim-free year is termed as the ‘No Claim Bonus’. Long-term two wheeler insurance policies rate higher over the one-year plans in terms of the No Claim onus (NCB) as well.
To get the most out of this benefit, make sure you ride safely and adhere to the traffic regulations. If you happen to have consecutive claim-free years, you can accumulate a higher NCB percentage on an incremental basis for redemption at the time of the next renewal.
However, some insurance companies lock the NCB for the entire policy period so that you become eligible for a fixed discount percentage for all three years. Interestingly, if you make one claim during the policy period of three years, the NCB is not lost but it only gets reduced.
And the Trend Is Catching On
Today, we are witnessing a lot of bike insurance companies jump onto the long-term policy bandwagon with the idea of improving customer confidence and building a strong base of loyal and happy clients. Some of the popular insurance companies offering long-term two wheeler insurance plans are HDFC Ergo, ICICI Lombard, and Bajaj Allianz. The picture looks quite rosy right now with these multi-year plans simplifying a lot of things for two-wheeler owners. Coverfox.com is your one-stop destination for comparing long-term two wheeler insurance offerings from prominent players in the industry.