WHAT IS THE MAXIMUM PERIOD FOR WHICH ONE CAN TAKE BIKE INSURANCE

With an increase in the usage of bikes these days, the possibility of road accidents has risen at a much faster rate. Therefore, it has become mandatory for bike owners to get insured their bikes properly for the safety of themselves and their vehicles equally.

Despite being a mandatory rule, it has been observed that many bike owners are refraining from the insurance policies of their bikes. Therefore IRDA (Insurance Regulatory Development Authority) of India has made a stringent rule of taking a 5-year insurance plan for a newly purchased bike in case of a third-party insurance plan. While in the case of a comprehensive bike insurance policy, it’s just one (1) year duration.

What Advantages Does a 5-Year Bike Insurance Policy Have?

There can be innumerable advantages to purchasing a long-term bike insurance policy plan out of which major ones are listed below:

  • Offering Low Premium Amount: A long-term policy's yearly premium is always lower than the premium of a short-term policy. Long-term insurance is therefore less expensive. Along with short-term OD (Own Damage) protection, one can also receive ongoing 5-year third-party coverage.
  • NCB: A “No Claim Bonus” is quite relevant under the “Own Damage Cover policy”. A significant reduction can be offered on OD coverage in case a policyholder makes no claim in the desired tenure of the policy. One can get about a 50% discount on a third-party insurance policy in case a person doesn’t file any claim for 5 consecutive years from the date of the policy taken. 
  • No Bike Insurance Challans: It is a lawsuit in India to ride a bike without insurance and a hefty fine can be charged for this illegal act. The penalty is referred to as “challan”. Having a bike covered with a long-term policy, one gets rid of paying any penalties or fines in the form of challans on the road and can ride their bikes freely without any interruption.
  • Getting Rid of Frequent Renewal Process: Having insurance covered for consecutive 5 years, the policyholder need not renew the policy on a yearly basis. Thus, lowering the risk of invalidity of the insurance and free from the cop’s continuous checking-up activities on the road.

What Are The Important Things That Need To Be Checked While Opting For Bike Insurance?

1. The Desired Bike Insurance Requirements: Prior to purchasing the policy, it’s very important to determine one’s need in terms of bike insurance. It is recommended to choose a policy depending on the bike's age, the engine's cubic capacity, geographical location, how much time is involved in riding, etc.

2. Introspecting One’s Own Driving Habits: The possibility of accidents tends to increase in case a person is a frequent bike rider. Thereby, having a low-risk profile and needing instant extra coverage for the safety of the bike and rider. Opting for a zero-depreciation add-on raises the claim amount by not eliminating the deductible costs incurred on a minor tear and wear-like damages to the bike.

3. A Suitable Budget for Bike Insurance: A person has the option to check on various significant features before purchasing any bike insurance policy. Some of these features are IDV (Insured Declared Value), age of the bike, fuel capacity etc. to match one’s own budget limit. Buying an extra add-on adds up to an extra advantage to the set budget plan.

4. Comparing Various Bike Insurance Plans: Before making any purchase, always compare different plans present on Quickinsure website. By doing so one can get a tremendous idea of different coverages and services along with their individual cost price to check which one would be most suitable to purchase as per one’s own needs and requirements.

5. The Popularity of the Insurance Company: It is crucial to check on which insurance companies are good for purchasing without any hassle. Insurance has good after-sales services, smooth and fast claim processing, and is highly technologically driven are the best choices one can ever make in buying any bike insurance.

The increasing number of uninsured bikes on the roads is a concerning issue in the country. Many people either neglect to purchase insurance initially or fail to renew it regularly. Opting 5-year insurance for bikes provides uninterrupted financial protection and eliminates the hassle of yearly renewals. By obtaining comprehensive coverage for an extended period, policyholders can experience a sense of satisfaction and peace of mind. It is crucial to prioritise bike insurance to ensure financial security and abide by the mandatory requirement for two-wheeler owners. Consider purchasing 5-year bike insurance online for convenience and long-term protection.

FAQs - Frequently Asked Questions

Q1. What is the maximum tenure of any bike insurance policy?

Though it’s a stringent rule of taking a bike insurance policy of 5 years in the case of “Third Party Insurance” in the case of a “Comprehensive Insurance Policy”, the tenure is just one (1) year only.

Q2. How much NCB discount a policyholder gets in case of a “Third Party Insurance Policy”?

A person is liable to get about a 50% discount on renewal of a “Third Party Insurance Policy” if and only if not, a single claim has been made for five (5) consecutive years.

Q3. Which type of policy offers a lower premium? A short-term policy or a long-term policy?

A long-term policy offers a lower premium than a short-term policy.

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