Using a two-wheeler also comes with the responsibility of good maintenance of the same. As a bike owner, apart from regular maintenance, there is another essential that you need to take care of – buying a bike insurance policy. For such people who use their two-wheelers, it is more beneficial to buy a long term bike insurance policy.
Many a time, people purchase the policy but forget the bike insurance renewal date which leads to the cancellation of the policy. Driving without valid bike insurance is an offence and can lead to heavy penalties. Having sufficient coverage is necessary, yet many people drive without to avoid the process of buying and renewing the policy. To avoid such hassles one can opt for a multi-year or long term bike insurance policy.
What is a long term bike insurance policy?
Usually, bike insurance policies are renewed annually. A long term bike insurance policy, also known as a multi-year insurance policy is meant for a longer tenure. This means that policyholder does not have to go through the process of bike insurance renewing every year. A long term bike insurance policy can be purchased for up to three years and in these three years, you don’t have to worry about the renewal of the bike insurance.
What are the benefits of buying a long term bike insurance policy?
Every bike needs at least a valid third-party bike insurance to drive on Indian roads. To ensure all bikes have valid coverage at all times, long term bike insurance is a viable solution. It comes with a myriad of benefits, as follows:
- Huge savings on the premium amount
The premium amount of a third-party bike insurance renewal is regulated by the IRDAI. The amount is hiked by a certain amount every year. So, when purchasing a single-year bike insurance policy, you would need to pay the increased premium every year. This can easily be avoided by opting for a long term bike insurance policy. You can be protected from premium hikes and save significantly on premium amounts.
- Say no to bike insurance renewal hassle
Many people fail to get their bike insurance renewal done on time due to the complicated process or due to forgetfulness. With a multiyear bike insurance policy, you don’t have to go through the hassles of remembering dates and getting renewals every year. While renewal is not a complicated process anymore, especially with online services, keeping the policy active for years at a stretch is definitely a smarter choice.
- Avoiding the risk of policy lapse
Driving without valid bike insurance coverage is risky as well as an offense. It can lead to heavy penalties, imprisonment or both. In case of a mishap, it would require you to pay for the damages from your own pocket. Additionally, missing the bike insurance renewal date can lead to a policy lapse. Subsequently, you will have to buy a new policy. This would require inspection, paperwork and a higher premium amount. All these hassles can be avoided by purchasing long term bike insurance. With one single purchase of bike insurance, one can avoid the severe consequences of getting a policy expired.
- Retaining the no-claim bonus
A huge benefit of getting a bike insurance renewal on time is retaining the no-claim bonus. When you fail to renew your bike insurance policy by its due date, you lose your no-claim bonus. No claim bonus offers a discount on the premium amount if you have not raised any claim for an entire year. This no-claim bonus, when accumulated over the years can go as high as 50% of the premium amount.
But there is a risk of losing no claim bonus if you fail to get your bike insurance renewed on time or within the grace period offered by your policy. With long term bike insurance, you need not keep a track of renewal dates and accumulated no claim bonus every year. Many insurance providers also have a different structure for no claim bonus for long-term policies which may help you fetch higher discounts.
- It helps you avoid a break-in
In case you miss bike insurance renewal for a longer time, and even the grace period gets over, you need to purchase a new bike insurance policy. This would require your bike to be inspected by the insurance company to check the bike’s condition and assess the premium amount. This is more likely if the gap period is higher. These policies are known as “break-in” policies. The application for new bike insurance can also be rejected in case the bike is found to be not in an insurable condition. When accepted, the premium amount is higher while the Insured Declared Value can get affected too. All these adverse possibilities can be avoided with a long term two wheeler insurance policy.
- An option to cancel the policy anytime
Long term bike insurance is surely beneficial but you might not want to commit to the policy for a longer tenure. In case you are not happy with the services of the insurance provider or find the claim process to be complicated, you always have the choice to cancel the policy at any time. You can also switch your policy to another insurance provider in case you want.
In such cases, the insurer would refund the amount for the remaining tenure and the accumulated no-claim bonus is also transferred to the new policy. All you would need is an NCB certificate from the present insurance company and get the policy transferred to the insurer of your choice.
While a single-year policy may come cheap, long term bike insurance comes with benefits that surpass the cons. It is convenient, hassle-free and keeps you secured for a long time while also saving your hard-earned money. Moreover, you don’t have to fret over keeping a tab or renewal dates and get the insurance renewed every year before the due date.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
