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.