A significant number of two-wheelers on the Indian roads are not insured. Lack of proper bike insurance in case of an accident renders the vehicle owner unable to compensate the victim or their family. That is the reason why it is mandatory under the Motor Vehicles Act of 1988 that all vehicle owners to have at least a third party two wheeler insurance cover.
There two types of two wheeler insurance:
Third-party insurance policy – This policy is made compulsory by the Indian government for all the vehicles plying on Indian roads. This policy covers the loss and bodily injury caused to the third party because of the accident.
Comprehensive policy – It covers risks caused by damage or theft of own two-wheeler as well as damage repair costs for the third party.
It is advisable to buy a comprehensive long term two wheeler insurance as it is available for an extended period of time of two to three years and you do not have to go through the renewal process time and time again. It is convenient and, at the same time, lets you enjoy additional benefits.
The Long Term Two Wheeler insurance covers you against damages that your bike or scooter may incur due to any unforeseen events. A long term insurance policy helps in reducing the burden of exceptionally high costs that may arise due to damages caused to your bike by the occurrence of an accident, natural disaster and so on.
Benefits of Long term two wheeler insurance
- Savings
The biggest advantage of opting for a long term two wheeler insurance is that the policyholders can save on the premium. Insurers save a lot on long-term insurance in terms of administrative expenses and policy issuance costs.
- Convenience
It is more convenient to renew a two wheeler insurance 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.
- Stability of premium rates
The premium rates for third-party insurance are rising every year. The Insurance Regulatory and Development Authority (IRDA) might increase the premium for third-party covers every year. However, if you have opted for a long-term insurance policy, you can avoid these hikes and stay with a stable premium rate for three years.
- No Claim Bonus (NCB)
Apart from saving premium, this benefit helps long term two wheeler insurance policies to 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.
- Protect you from Nonrenewal 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. Generate quotes for a long term policy with the help of an online two wheeler insurance premium calculator.
