Why choose a long term bike insurance policy?

IRDAI allows insurance companies to offer an extended policy term for two wheelers. Thus, gone are those days when your two wheeler insurance policies had to be renewed each year! You have to remember the renewal dates, documents submission, etc. The long-term two wheeler insurance policy aims to cover the financial liabilities of uninsured two-wheelers plying on the Indian roads.

A survey being conducted with people who bought the policy reveal that 80% would prefer renewing their insurance policy for the long term. Statistics say around 50 to 55% of consumer would prefer to take 3-year long-term insurance policy or even more. It’s a matter of great concern that around 60 to 70% of two-wheeler running on roads are uninsured. This will surely create a good potential for long-term bike insurance policy in Indian markets which is quite untapped so far.

Even though you people renew policies every year, but still you have to face the burden of higher premium costs, compromised benefits  & features, etc. But now you can get the convenience of renewing your policy after 3 years,  depending on your insurance provider at one go. All you have to do is pay your premium and enjoy your cover for next 3 years without having to keep a track of policy renewals. Thus, a long-term policy is very useful in case you have multiple insurance policies. The best part of long-term insurance purchase is you tend to save on your premium costs.

Whenever there is a yearly renewal of policy, people would find a slight increase in the premium costs due to the yearly hike in the third party insurance premium being dictated by regulatory bodies. A long-term two-wheeler insurance will thus protect you from being affected by such hikes which are around 10 to 15% on an average.  These premium rates will be fixed at the time of taking the policy and stays same for the entire policy period.

From the companies’ point of view, a long-term policy helps them save on administration and issuance costs, thereby reducing the overall operational costs. Thus, the savings benefits will be passed on to the end users through discounts on premium costs. There are discounts offered by every insurance companies that depends on several factors such as policy type, manufacturer, bike make and model, engine capacity, year of purchase, etc.

If a person missed their renewal, there comes a gap in coverage during which your vehicle is completely uninsured. In case you meet an accident or your bike gets stolen, you will have to face the brunt of the unexpected expense due to damage or loss of your vehicle. Therefore, a long-term motorbike insurance online policy will help you give continuous coverage for next couple of years. It keeps you away from hassles of policy renewal every year, tedious paperwork, vehicle inspection, as well as save your valuable time and energy.

One the best features of long-term two wheeler insurance policy would be accumulating your NCB. It’s a discount that could be availed if you don’t make a claim for the entire policy period. Thus, upon renewal, you will get 20% discount on your own damage premium. This discount increases each year at 5% and could be accumulated up to a maximum of 50%. You can trade this discount for higher claims or keep your insurance premium extremely lower rate.

Long-term two wheeler insurance: A boon for multiple bike owners

Two-wheeler insurance is mandatory by law in India. Yet researchers say only 20 to 30% of the bikes have been insured so far. Therefore, the insurance companies are left around with a vast untapped market in the bike insurance segment. Let’s understand what exactly the problem is? Are people just not interested in buying two-wheeler insurance? Or they seem to be busy to get it renewed on time?

Relax! Insurance companies can read the mindset of consumer quite well and have introduced long-term two wheeler insurance policy that lets you purchase a policy for three straight years and enjoy the pure convenience and a completely stress-free experience of bike cover purchase.;

Here’s how you can figure out why long-term two-wheeler insurance is the latest buzz in the insurance segment:

Save on Premiums

Yes! That’s what all insurance seekers are looking out for. Every year, IRDAI raises third-party insurance premium by approximately 20 percent. So when you buy a long-term cover, you have the advantage of saving on the premium costs. All you have to do is pay a cumulative premium for three years. Having long-term insurance will prevent the revised rate affect your premium cost. You can save around 20 to 30% on the costs.

Protect Longer

There are a lot of things to bother around, busy schedules and hectic life. Often people forget to renew the policy each year which will lead to policy lapse or no coverage. An accident or loss to your bike at such point of time will lead to heavy financial losses.  But, with long-term motorbike wheeler insurance, you stay away from the worries of policy lapse each year. It will eliminate the hassles of yearly renewals. For people with multiple bikes, long-term insurance is a boon.

Dodge Paperwork

When you buy policy every single year, you will receive the renewed policy document. Visiting branches, filling up renewal forms, taking print outs, signing them and sending them back to the insurance companies will definitely add to your complexities plus additional costs on printouts and visits.

Therefore, the Long-term policy will let you get rid of loads of paperwork for bike insurance renewal. It frees you from the tedious process and a single document is valid for next two or three years depending on the policy you choose.

Bridge the GAP

When you forget the policy renewal or your policy ends each year then you to go through an endless process to get suitable coverage with same features & benefits.  Again, same insurance providers might want to inspect the vehicle before committing to a cover. Only after checking the condition of the vehicle, they will allot the coverage amount. Chances are that you might get a depreciating value of the cover. But with long-term two wheeler insurance, you will be insured for an extended period and the same level of cover. 

No Claim Bonus

It is the discount you receive on your own damage premium for every claim-free year. So, if you’re good in driving and treat your bike well, you can collect consecutive claim-free years. The more NCB you collect the better discount you can bank upon during the next renewal.With long-term two wheeler insurance, you not only claim the NCB but also get a higher NCB compared to single-year policies. 

Why do you need a two wheeler insurance cover?

Mohit got his first job at an MNC in Chandigarh and was extremely happy. While coming back from his office on his bike one day, he met with an accident and had to be hospitalized for a week. After spending more than a month to revive at home, he is almost fit now and will return to work in next three-four days’ time. But the obvious question is how will he commute now? His bike is damaged beyond repair and does he have enough funds to get it replaced because all his savings were utilized for medical treatments.

This is where you will start feeling the pinch in your pockets. Just like Mohit, there are many people who might try and ride a bike safely but uncertainties could not be predicted and may meet up with an accident leading to own damage or third party loss, else your vehicle may be damaged terribly under natural or man-made circumstances. Therefore, it is advisable to purchase a suitable two-wheeler insurance policy.

Two wheeler insurance, as the name suggests, is an insurance policy that will offer cover protection from any liability or damage to an individual or property due to your two-wheeler (such as a scooter, motorcycle, moped etc.). It protects and covers the cost of damage to your vehicle due to unforeseen incidents such as accidents, man-made or natural calamities, theft etc.

Getting two wheeler insurance is smart and responsible thing to do in today’s time because it secure your monetary investment. It will help you prevent getting a big blow in terms of medication, property loss coverage and bike repair costs. However, its not just about getting any two wheeler insurance for your bike, its about getting the right insurance for your prized possession. With the advent of sportsbike and foreign companies investing in Indian markets bikes are a prized possession in today’s time. So one must do their homework well before zeroin for an insurance policy to go with, because there are several out there, each meeting different purpose or needs. If you’re not aware of the subject well you can always talk to dealers and friends who have bikes.

It is advisable; make sure you use an online two wheeler insurance premium calculator when you make your decision. It will help you evaluate your requirements and provide you with options best suitable for your place of living. By just filling up some basic details like IDV of the vehicle, Cubic Capacity, Zone of registration and Age of vehicle you can calculate the premium amount. IDV is calculated by reducing the depreciation from the manufacturer’s listed selling price. It won’t include the registration and insurance costs.

With internet based facilities availing a two wheeler is just at the click of the button on your smartphones or computers. The best reason for two wheeler insurance policy purchase is that if you need to take your bike to garage, you can avail cashless repairs. Many insurance programs have tied-up with several garages. If you have any third party property damage or third party physical injury, your insurance cover will help you compensate for it. You can also get instant claim assistance as well as 24 hour support for insurance company. To boost the bike insurance segment, government has introduced three year long term two wheeler insurance policies. Such policies will help you cut down the cost of premium as well as save your precious time and energy. You don’t have to keep remembering the renewal dates or fear of policy lapse due to hectic schedule. 

WHY YOU SHOULD CONSIDER BUYING A LONG TERM TWO WHEELER POLICY?

We all have a special place in our heart for our bikes and hence we always want to keep it well maintained. One of the measures which we take is to get our two wheeler insured. But there are times when we miss on the renewal as we are too occupied with our lives.

For all those who have their hands full with work, here is good news! You can opt for a long term two wheeler policy.

With an exponential rise in the number of vehicles on the road every year, the Insurance Regulatory and Development Authority of India (IRDAI) has allowed the insurers for a long term insurance cover. This means that now you can choose the tenure of your two wheeler policy and can opt for either a 1 year or 2 year or 3 year two wheeler insurance cover. Having a long term policy is much more beneficial and also provides continuous protection to your vehicle. Here are a few benefits of long term two wheeler insurance policy:

Convenience

Getting a long term two wheeler policy saves you from hassles like renewing the policy every year and keeping a tab on renewal date. Hence it is always advisable to opt for a long term cover and save yourself from annual renewal procedures.

Saves You from Risks Related To Non-Renewal

You can be exposed to certain risks as a two wheeler owner during the period between the lapse of your policy and its renewal. Buying a long term two wheeler policy will avert you a financial risk for 2-3 years.

Fixed Premium Rates Up to 3 Years

Every year, third party premium increases by 10-15%. Opting for a long term two wheeler insurance policy insulates you from the hike for the entire policy term.

Saves You From Inconvenience of Renewing A Lapsed Policy

Insurance companies insist on getting your vehicle inspected in case your policy is lapsed before renewing it. Buying a long term policy saves you from such a situation for the entire tenure you have opted for.

NCB Benefits

Insurance companies offer discounts on the long term cover and the insured is also entitled to a no claim bonus (NCB) post the tenure. In case you opt for a regular two wheeler yearly policy, you lose the NCB even if you make a single claim. In a long term two wheeler policy, your NCB decreases but does not become nil in case of a claim during policy period.

Voluntary Deductible Discounts

Voluntary deductible is the minimum amount that a person declares to bear at the time of the claim and the India Motor Tariff sets certain voluntary discounts which need to be given.

Some insurance companies like Bajaj Allianz also offer an additional voluntary deductible discount than made compulsory by the India Motor Tariff with additional slabs for vehicles having IDV (Insured Declared Value or current market value of your two wheeler in lay man’s term) more than Rs. 75000 in a long term cover.

Refund of Premium on Cancellation of Policy with Partial Claim

Some insurance companies offer refund as per the slab if you cancel a policy and have partially claimed from it.

Opt for a long term two wheeler insurance cover and save yourself from unwanted hassles in life. Know more about best two wheeler insurance plans with Bajaj Allianz.

[Source: http://www.drivesafely.co.in/why-you-should-consider-buying-a-long-term-two-wheeler-policy/]