Long-term two-wheeler insurance: Know the benefits

With the rise in the number of vehicles on the road, the rate of accidents has increased. As per National Crime Records Bureau (NCRB) data, despite the Covid-19 lockdown, India recorded 1.2 lakh cases of deaths due to road accidents in 2020. A big share of those killed in road accidents were two-wheeler riders. That’s why getting insurance for a two-wheeler is very important. Unfortunately many people consider two-wheeler insurance as a bad investment. As a result, a large number of two-wheelers are playing in the country without a valid insurance policy. To check this tendency IRDAI has recently made five-year third-party insurance mandatory for new two-wheeler owners. But is it beneficial for existing two-wheeler owners? Long-term two-wheeler insurance comes with many benefits. Let’s take a look:

1. Save on premiums

A long-term bike insurance policy is cost-effective as it avoids any increase in the annual premium. In addition, most of the insurance companies offer discounts on premiums charged on long-term policies.

2. No claim bonus benefits

Long-term insurance policy is offered with a higher quantum of no claim bonus (NCB) discount compared to a short-term insurance policy. The discount can go up to 20% for the first claim-free policy year.

3. Less stress

In terms of policy renewal, for long-term two-wheeler insurance it requires premium payment once in three or five years. That’s why you do not have to worry about renewing your policy every year.

4. Long-term protection

Long-term two-wheeler insurance means long-term protection. In case of theft or an accident, the insurance provides coverage for longer than a year.

5. Cancel policy anytime

In most cases, if your current plan does not meet your expectations, you can terminate the policy before the expiry date. In this situation you will get a refund for the remaining policy tenure. At the same time, you can also port to another insurer without any hassle.

6. More rider facility

Add-ons come with benefits at a nominal extra charge and each one of them serves a specific purpose. Compared to long-term, short-term bike insurance policies provide you with more add-ons and you can make changes to these riders every year according to your needs.