In India, it is required by law for all automobiles to have third-party liability insurance. Even a single day’s insurance lapse can lead to severe legal action if you ride a two-wheeler. The timely renewal of the motor insurance policy is therefore essential. It might be challenging to remember when your policy is due to renew in this fast-paced world, and you risk paying your premiums late. To solve this issue quickly, consider purchasing online two-wheeler insurance.
Up until a few years ago, the insurance provider required that the majority of two-wheeler insurance plans in India be renewed each year. The normal two-wheeler insurance policy was what it was known as. But starting in 2015, the Insurance and Regulatory Authority of India (IRDA) gave insurers the go-ahead to provide long-term insurance contracts that may last up to three years. Advantages of a comprehensive two wheeler policy are:
The ability to save money on premiums is the main benefit of choosing long-term insurance coverage. Long-term insurance offers significant cost and administrative cost savings for insurers.
Rather than needing to renew a policy annually, it is more convenient to do so every two or three years. In this manner, you can get relief for a longer period. Additionally, you can spare yourself the inconveniences that come with having to renew a policy that has expired. Likely, you won’t have time to renew your insurance, even if you’ve set a reminder. Additionally, you might already have a financial obligation, so you won’t be able to pay the charge. An expired policy is the end outcome. A long-term policy eliminates the possibility of policy lapse for at least three years.
3. Consistent Premium Price
Each year, third-party insurance premium costs increase. Every year, the Insurance Regulatory and Development Authority (IRDA) raises the third-party insurance price by 20%. With long-term insurance coverage, you can prevent these yearly increases and maintain a constant payment for three years. Because of this, long-term two-wheeler insurance enables you to lock in a low premium rate for the entire three-year period. In actuality, it acts as a buffer against increases brought on by inflation.
4. The Benefits of No Claim Bonus (NCB)
The long-term insurance policies outperform the short-term insurance policies in terms of NCB. If the policyholder has not filed a claim in the preceding years, the insurance company may offer an NCB as a type of reward. As opposed to the cumulative NCB that has been accumulated in the short-term policies, the insurers typically offer a higher NCB after the conclusion of a three-year policy.
5. Protect against Non-Renewal Risks
When two-wheeler insurance plans are not renewed, there are several hazards involved. Not having a policy is not only against the law, but you are also temporarily without financial security. You won’t be eligible for any of the insured amounts if, for example, your two-wheeler is involved in an accident, is stolen, or suffers a natural disaster during the time that your policy is in effect.
Compared to short-term coverage, long-term two-wheeler insurance has many advantages. In actuality, paying the three-year cumulative premium is nothing more than a possible investment in the future. With the use of a two-wheeler insurance premium calculator, you may conduct online research on the premium that would be due in the case of a long-term policy and make an informed buying decision.