Why Go For Long-Term Two-Wheeler Insurance?

When you buy a new vehicle, it comes with an insurance cover as it is mandatory to have motor insurance - at least a third-party insurance in India. This insurance cover is annual in nature and has to be renewed every year. But, did you know that more than 2/3rd of motor insurance - whether for two-wheelers or four-wheelers - in India does not get renewed on time and gets lapsed? This means that around 70% of two-wheeler drivers are out on the roads without an active policy. One of the main reasons for this is the yearly nature of the renewal, and there is no grace period on paying the renewal premium.

If you want your two-wheeler insurance to remain active all the time, you need to renew it before the last date, and that too, every year. It does sound like a bit of a hassle, right? However, the Insurance Regulatory and Development Authority of India (IRDAI), from September 2014, allows insurance companies to sell 2-year and 3-year policies to their customers. This means that you need to worry about premiums and renewal only once every 2 or 3 years.

Let us Look at the Advantages of a Long-Term Bike Insurance

1. The premium payable is in a 3-year policy is thrice the usual annual amount. This amount does not change during the course of the policy. This means that the premiums can neither be hiked nor cut down, and also that the sum assured remains constant for all 3 years.
2. The premiums for a long-term policy generally come with a discount of 20% to 30% of the usual annual premium on the own damage portion, as the tenure of the policy affords that can be passed on to the customer.
3. A 3-year two wheeler insurance policy also means that you do not have to get your vehicle inspected during the period for any change in the Insured Declared Value (IDV). A vehicle inspection is usually undertaken only if you fail to renew your policy on time and go for a renewal or new policy after a gap of even 1 day from your policy expiration.