Brand new Bike
Long-term two-wheeler insurance policy simply insures your two-wheeler against unanticipated events for a longer period of up to five years. While a general bike policy lasts a year and needs to be renewed every year, purchasing long-term bike insurance removes the need to renew every year and also enjoy its benefits and coverage for a longer time. Whether minor damage or a total loss, Long-term Bike Insurance Policies are wide-ranging and cover you well, for a long. Just like the yearly insurance, under long-term bike insurance too, you are protected fromclaims against third-party liabilities, damages to your two-wheeler due to accidents or natural and manmade calamities even theft.Long-term or multi-year two-wheeler insurance offers you, complete peace of mind as it provides coverage in a single policy for a longer period with just a one-time premium payment. Insurance providers also offer bike insurance policies for a two to three years period, which remove the hassle of renewing two-wheeler insurance annually. Additionally, Long-term Two-wheeler Insurance allows you to purchase two-wheeler insurance at a lower rate while with a superior claim experience. Whether it is a motorcycle, a scooter or an electric bike, choosing bike insurance for a longer period gets you the best bargain and lets you enjoy a stress-free ride.
Apart from the major benefit of policy renewal frequency being less, the chief facets of long-term two-wheeler insurance include;
Inclusions of coverage in long-term two-wheeler insurance:
Exclusions of coverage in long-term two-wheeler insurance:
As per the Motor Vehicle Act, every two-wheeler must always have valid third-party insurance in India. Recently, the Supreme court has made long-term two-wheeler insurance mandatory for new two-wheelers. But, the question to ponder is, should we consider buying long-term two-wheeler insurance. Well, the answer is simply, a definite‘Yes. Why? Let’s take a look at the many benefits of long-term or multi-year bike insurance;
As known, the IRDAI - Insurance Regulatory and Development Authorityregulates the rates and premiums of third-party motor vehicle insurance. So, any insurance company cannot sell basic third-party insurance at a price that is higher or lower than as fixed by the IRDAI. However, the insurance premiums are increased by IRDAI by almost 20% every year. So, if you are buying a one-yearterm bike insurance then you will be required to pay a 20% higher premium when you renew the policy at the end of the one-year term. However, if you purchase a multi-year policy, say 5-yearsterm, you will remain safeguarded against the premium rate hikes as the premium cannot be increased within the duration of the policy tenure.
Getting your bike insurance renewed annually can be a daunting process. Renewal can be a time-consuming process and involve a lot of paperwork depending on your insurance plan and your insurance provider. However, with long-term two-wheeler insurance, you can save yourself from this stress and worry of renewing your insurance policy every year by opting for a hassle-free one-time process of long-term two-wheeler insurance.
It is a known fact that riding without a valid third-party or comprehensive two-wheeler is a punishable offence in India. It could lead to penalties and even imprisonment in certain cases. Furthermore, once you do not renew your policy and it lapses, then you will have to purchase a new policy and complete all the registration, paperwork and inspection all over again. All of this can be easily avoided with a multi-year insurance policy option. Using a single purchase, you can keep yourself protected against the consequences of policylapse for at least a few more years.
One of the most substantial benefits of timely comprehensive two-wheeler insurance renewal is No Claim Bonus or NCB. It allows you to get a discount on the insurance premium if you have not filed any claims in the year. The No Claim Bonus or NCB for the first claim-free year is 20%, while it could increase up to 50% in the fifth claim-free year. But you risk losing your No Claim Bonus or NCB if you do not renew your two-wheeler insurance within the grace period from the expiry date of the previous policy. With long-term two-wheeler insurance, whether online or offline, you are not required to keep track of the accumulated No Claim Bonus or NCB every year. Also, many insurance companies have a different No Claim Bonus or NCB structure for multi-year policies, which could help you fetch bigger discounts on your extended two-wheeler insurance.
In case you do not renew your insurance for two years and now you want to purchase a new two-wheeler insurance, the insurance company may want to inspect your vehicle as there has been a significant gap between the policies. It is generally known as 'Break-in' policies. In such cases, the insurance company can reject your application if the vehicle is not in an insurable condition as per their evaluation. Even if any insurer accepts the request, the chances are that the insurance premium will be higher, and the Insured Declared Value -IDV shall be negatively affected. With a long-term two-wheeler insurance policy,you can help avoid this break-in situation.
In case after purchasing long-term two-wheeler insurance, you do not like the services of the insurance provider. Since it is a long-term commitment, you can easily cancel your policy anytime and switch to a different insurer. Your present insurer shall refund the unutilised premium amount back to you. Moreover, you can transfer your current No claim bonus or NCB to the new insurer as well. for that, you are required to get aNo claim bonus or NCB certificate from your present insurer and purchase the new policy from the new insurer before cancelling your existing policy. On submission of the No claim bonus or NCB certificate to the new insurer, your bonus will be transferred to the new policy seamlessly. Letting you have the benefits of a new insurance policy with a new insurance provider.
As we can see, long-term two-wheeler insurance offers a lot of valuable advantages to a policyholder. So, if your insurance renewal is just around the corner, consider purchasing a long-term or multi-year two-wheeler insurance plan and enjoy a host of benefits that come with it.
For your general know-how, here are the factors that affect long-term bike insurance premiums;
So, choose smartly by opting for an extended period of insurance and reaping the benefits of long-term two-wheeler insurance considering all the factors!
Let's take a look at some frequent queries on the Benefits of Opting for a Long-Term Two-Wheeler Insurance Policy;
IDV is the present market value of your bike. It is generally calculated after considering the two-wheeler’s depreciation from the two-wheeler’s ex-showroom price.
It is essential to note that while the multi-year Comprehensive Two-wheeler Insurance covers own damage as well as third-party liabilities, the multi-year third-party Party Insurance covers third-party liabilities only. So, if you are looking for wide-ranging benefits, it is ideal to choose long-term or multi-year Comprehensive Insurance plan.
Yes, you can switch to long-term bike insurance as and when you are renewing your bike insurance. You have the option to choose from one year, two, three or five year insurance policy for two-wheelers.
In case you have a yearly bike insurance policy, then you have to pay for renewal every year. However, by opting for a long-term bike insurance policy, you need not worry about paying for bike insurance policy renewal every year.