What Are the Benefits of Buying Long Term Two-Wheeler Insurance?

Renewing a bike insurance policy annually can be a hassle for certain policyholders. One may forget the renewal date, which could result in the loss of the no-claim bonus.

This is where long term two-wheeler insurance policies can be of help. It entails premium payment for a long term plan in a single payment, which reduces the hassle of renewing a bike insurance online or offline every year.

Advantages Of Purchasing A Long-Term Motorcycle Insurance Policy

Mentioned below are a few benefits that a long-term two-wheeler insurance policy brings along:

1. Reduced Premiums

With long term bike insurance online, individuals benefit significantly from lowered premium amounts. This is because the premium is constant during the entire policy period. Thus, policyholders do not have to worry about the annual hike on premiums.

Further, when it comes to third-party bike insurance, insurance companies are not allowed to charge more premiums than what is prescribed by IRDAI (Insurance Regulatory and Development Authority of India). Meanwhile, the IRDAI also hikes the premium rates by around 20% every year. So, with an annual bike insurance policy, one has to pay a 20% higher premium in the coming year. This can be prevented with a multi-year or long-term bike insurance policy.

2. NCB Benefits

When individuals purchase an annual bike insurance online or offline, they have to renew the policy after each passing year. Such policies come with a renewal date. The renewal date is followed by a grace period offered by certain insurance companies.

However, if a policyholder forgets to renew his/her two-wheeler insurance policy within the grace period, there are chances of losing the NCB benefits. No Claim Bonus or NCB is a bonus that a policyholder earns for not making a claim during a policy year. The NCB for the first claim-free year is 20% and can increase to around 50% in the fifth claim-free year. It helps in lowering the premium significantly.

With a long term bike insurance policy, one needs not to worry about losing NCB benefits, as there are no obligations to renew the policy every year.

3. Avoiding Break-In

Assuming an individual did not renew his/her bike insurance policy for the previous two years. Now, if he/she wants to purchase a new bike insurance plan online or offline, the insurer might want to inspect the bike’s condition as there has been a huge gap between the policies. These are called break-in policies.

Further, the insurance company might reject the policyholder’s application stating that the bike is not in an insurable condition. Even if the insurer accepts the request, the IDV will be much lower. Long term two wheeler insurance policies can help one avoid falling prey to such a scenario.

4. No Worries Regarding Depreciation

Another aspect that many policyholders forget is yearly inspection of the bike’s condition. With each passing year, a bike’s market value tends to decrease due to wear and tear, known as depreciation.

The poorer a bike’s condition becomes, the more premium one pays. Individuals can avoid this with a longer bike insurance policy as there will be no scope for inspection. Thus, it works like a zero depreciation bike insurance policy.

5. Ease in Cancelling Policy

A 5-year bike insurance plan is indeed a long term commitment. So, if a policyholder wants to cancel the policy and switch to a new insurer, he/she can do so conveniently. The current insurer will return the unutilised premium amount. In addition, a policyholder can transfer his/her NCB to the new insurer by obtaining an NCB certificate.

Concluding

One can compare different insurance companies and choose the one that provides extensive bike insurance policy coverage. Online insurance aggregators have further streamlined this process.

Evidently, purchasing long term bike insurance online or offline brings along a host of benefits. Thus, consider purchasing a long-term two-wheeler insurance policy to take advantage of all the above-mentioned points. On the final note, apart from all the above pointers, it is crucial to know that NCB for any vehicle is fruitful , and can be beneficial for you in the long run.