Here is Why You Need a Long-term Two Wheeler Insurance

Due to its easy-to-handle feature and affordable price, the two-wheelers are most popular among the consumers. Extremely crowded roads like India, the motor cycle is the best option of transport, which saves not only time but also the maintenance is cheap.
However, the saddest part is that as statistic says 60% of motor cycles are not insured in India. In last two years, around 19 crore vehicles are registered in India out of which only 8.26 crore were insured, says General Insurance Council (GIC).

The most apparent reason for this repentant state is the hassle allied with the renewal process of one’s policy is it lapses. Vehicle inspections, endless paper works have made the bike owners to have an aversion towards the process. This is why you should need a long-term bike insurance plan, which keeps you away from the boring job of renewing the policy year after year! A few insurers in India-including Bajaj Allianz- have introduced long-term two-wheeler insurance in the recent year. Bajaj Allianz Two-Wheeler Insurance covers your bike up to three years, where the regular cover is only for one year. The initiative was taken by IRDA to encourage the two-wheeler owners to buy a compulsory third-party cover. However, long-term bike insurance is optional. 

Well, whatever is the reason; there are some advantages of having a long-term bike insurance plan that can’t be unnoticed. Here we go:

Stay Away from Hassle

With a long-term insurance plan, you can stay hassle-free when it comes to renewal. Remembering the associated dates with your bike insurance is more important than remembering the birthdays or anniversaries. Moreover, it is not a big deal to renew your policy once in three years, rather riding with an expired one and welcoming the risk.

Save on Premium

There are higher chances of getting a discount on premium with long term insurance. The premium of third-party liability insurance tends to revise every year. This means whether you buy a third-party cover or comprehensive one, you unknowingly seem to pay a slightly higher premium. With a long-term two-wheeler insurance plan, you fix the premium for a long term without any change, skipping the price revision cycle. Also, you can avail upfront discount with some insurers for purchasing a long-term plan.

Slashing the Risk Factor

Riding your vehicle on roads without a valid insurance is risky. You can never predict an unforeseen situation and things turn complicated once you are unable to claim insurance just because you failed to renew it on the due date. This may leave you broke or sometimes you get challan from traffic police or have to pay hefty fines if caught while riding with an expired insurance policy.  Sometimes, the vehicle inspection is a tedious task during the time of bike renewal. With a long-term policy, you can remain free from these hassles. 

Earn Additional NCB Benefits

The NCB structure in case of renewal of long-term policy differs from NCB slab for a one-year plan. Unlike the later, the NCB is never ZERO, in case of long-term insurance, in case a claim has been made.

Let’s take an example:

Mr. Sharma purchased one-year policy and Mr. Kohli opted for a long-term plan. They both earned 20% for the first no claim year and that will be accumulated for every claim free year. If both have three constant no claim year, Mr. Sharma would have 35% discount at the end of three years while Mr. Kolhi may obtain 40% or more depending on the insurer. In this period, if both made one claim for each, Mr. Sharma’s NCB will be Zero, while Mr. Kohli would get something but it wouldn’t be nil.

Hence, a long-term two-wheeler insurance plan is worth buying! By covering the damages, your bike may incur, it saves you from being bankrupt.