Every owner of a two-wheeler in India is required by the Motor Vehicle Act to maintain current third-party insurance. The Supreme Court recently mandated 5-year third-party insurance for new two-wheeler owners in an effort to close the gap. Should current owners of two-wheelers take into account long-term two-wheeler insurance?
If they are aware of the numerous advantages multi-year automobile insurance can provide, the answer is unquestionable “Yes.” Here are the top six advantages:
- Big savings on premiums
The cost of third-party motor vehicle insurance is governed by the Insurance Regulatory and Development Authority of India (IRDAI). Basic third-party insurance cannot be purchased from insurance firms for more than the IRDAI-set price. However, the governing body raises insurance premiums by roughly 20% per year. # ##
Therefore, if you purchase a 1-year policy of bike insurance this year, you will often have to pay a 20% higher cost when you renew the coverage the following year. Multi-year insurance can help you prevent this. For instance, if you buy 5-year insurance, you won’t be affected by price spikes because the premium can’t go up during that time. *
- Remove the hassles associated with policy renewal
The difficult renewal process is one of the most frequent causes of bike insurance cancellation. But while this might have been an issue in the past, these difficulties are no longer present thanks to two-wheeler insurance online.
However, a lot of people still think that renewing a licence takes a long time and requires a lot of paperwork. With multi-year insurance, your car will be covered for two to five years, so you won’t have to worry about renewing the coverage every year.
- Prevent policy lapses
It is illegal to ride without a valid third-party or comprehensive two-wheeler insurance policy. It may result in severe punishments or possible incarceration. Additionally, you will have to purchase a new policy, go through the inspection process, and complete all the paperwork whenever the policy expires. A multi-year bajaj allianz two-wheeler insurance coverage can help you simply avoid all of this. You can prevent harsh policy-lapse implications for a number of years with only one purchase. *
- Loss of NCB
No Claim Bonus (NCB) accumulation is one of the most important advantages of timely comprehensive bike insurance renewal. If you haven’t made any claim for bike insurance in the previous year, you’re eligible for a concession on the insurance rate. The NCB is 20% in the first claim-free year, and it may rise to 50% in the following four. *
However, if you don’t renew your bike insurance during the grace period following the expiration date of the last policy, you run the danger of losing your NCB. You don’t have to keep track of the accrued NCB each year if you have long-term two-wheeler insurance, whether it be online or offline. Additionally, for multi-year contracts, some Indian insurers have a slightly different NCB structure, which may enable you to receive greater concessions. *
- Avoid break-ins
Assuming that over the previous two years, you didn’t renew your insurance. Now that there has been a substantial lapse in coverage, your insurer could want to inspect your bike if you decide to buy new bike insurance or claim bike insurance. These are typically referred to as “Break-in” rules. *
If the insurance provider determines that the bike is not in an “insurable” state, they may reject your application. You can prevent this situation with long-term two-wheeler insurance coverage.
Long-term bajaj 2-wheeler insurance policies offer a variety of advantageous benefits, as was already mentioned. Consider getting a multi-year plan if your insurance renewal is coming up so you can start enjoying all the advantages mentioned above.
* Standard T&C Apply
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
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