It is a well-known fact that two-wheelers are more vulnerable to road accidents as compared to four-wheelers. In order to ensure complete protection of your two- wheeler from accidents, it is important to buy a two-wheeler insurance policy. As per the Insurance Regulatory and Development Authority of India (IRDAI), any two-wheeler purchased after September 1, 2018, should have a third-party insurance cover and the premium for the same should be paid upfront for a period of five years. The IRDAI has made this a rule after an order was passed by the Supreme Court. However, two-wheeler owners who made their purchase before the specific date can continue to make the premium payment in the same manner as earlier. In spite of this facility available for older two-wheeler owners, it will be convenient for you to purchase a two-wheeler insurance policy that has a long duration.
Types of long-term two-wheeler insurance
There are two types of long-term two-wheeler insurance policies offered by a general insurance company.
Multi-year long-term insurance policy offers third party and own damage coverage for a period of five years. The premium for this policy is collected for a tenure of five years.
The second alternative is to buy a bundled policy wherein the
third party coverage is for five years while the own damage coverage is only
for one year. This policy will require an annual renewal for own damage cover.
Benefits of a long-term two-wheeler insurance policy
The benefits of a long-term two-wheeler insurance plan are elaborated below.
Renewing your policy after every five years is much more convenient than a yearly renewal. If you miss an annual renewal, the policy could lapse and you will have to go through numerous hassles to get it renewed. Hence, you with a long-term two-wheeler insurance plan, you can ride your vehicle without any stress as your two-wheeler is insured for five years.
The premium for third-party liability cover rises by 20% each year. When you buy a long-term two-wheeler insurance policy,you do not have to worry about the rise in premiums, as the premium is paid for five years.
No-Claim Bonus (NCB) is offered for both short-term and long-term two-wheeler insuranceplans. However, the NCB is greater in case of long-term plans as compared to an annual two-wheeler insurancepolicy.
Important Factors to consider while selecting a two-wheeler insurance plan
You need to consider various crucial aspects while buying a two-wheeler insurance plan. These include:
Considering the rise in the number of road accidents in the country and the increasing cost of insurance, it makes sense to buy a long term insurance cover to remain protected for a longer period, that too at a reasonable premium amount.