A Multi-Year Two-Wheeler Insurance Policy's Advantages
Getting your motorcycle or scooter insured is a duty that comes with owning a two-wheeler. When purchasing a bike insurance policy online, customers are urged to keep in mind the policy's renewal date. People, on the other hand, frequently overlook policy renewal deadlines and drive uninsured on the highways. The concept of renewing your bike insurance policy gets lost in the everyday rush and bustle of life. In India, driving without active bike insurance is a crime that can get you in a lot of trouble. Furthermore, driving on Indian highways without coverage against any unanticipated accidents is not a prudent decision.
The Consequences of Riding Without Insurance
According to the General Insurance Council (GIC) statistics for 2015-16, India has over 19 crore registered two-wheelers, with 60% of them riding uninsured. At the same time, two-wheelers are involved in the majority of India's traffic accidents.
The situation appears alarming, since millions of two-wheeler owners lack adequate coverage to assist them in the event of unforeseen events that may result in harm or loss to them or their vehicles. The difficult procedure of purchasing and renewing a policy is the primary reason why two-wheeler owners do not pay attention to insuring their vehicles. People prefer to avoid the paperwork, vehicle inspection, and other difficulties that come with insurance and thus do not consider it necessary.
According to the Motor Vehicles Act of 1988, having two-wheeler insurance is a legal requirement in India. Riding a two-wheeler without an active insurance policy might result in a fine of up to Rs.1000 or a three-month jail sentence, or both.
Why Should You Purchase A Multi-Year Two-Wheeler Insurance Policy Over The Internet?
The Insurance Regulatory and Development Authority of India (IRDAI) identified unawareness and aversion to renewing insurance as the primary causes of non-compliance. Many people also say it is a waste of money because they rarely utilize it. They don't realize that they can't forecast bad things happening, and that prevention is preferable to cure.
The IRDAI has enabled insurance companies to offer long-term insurance policies for up to three years to encourage bike owners to get their vehicles insured and renew their policies on time.
The Advantages of a Multi-Year Two-Wheeler Insurance Policy
A multi-year bike insurance coverage provides the policyholder with a number of advantages. The following are a few of them:
1. Saves You From Yearly Policy Renewal Hassles:
Avoid Yearly Coverage Renewals: Having to renew your two-wheeler insurance policy every year can be a hassle. It can be really easy to insure your bike for three years because you can ride protected for a long time without having to bother about renewals.
2. Reduced Premium:
A long-term insurance coverage has a lower premium than a one-year insurance policy. Inflation also causes the premium rate on insurance to grow by roughly 10-15% per year. A long-term two-wheeler insurance coverage protects the insurer from such occurrences. As a result, they must pay a reduced premium. This could be a good method to escape the annual cost review cycle by locking in your premium for up to three years. When purchasing a long-term bike insurance coverage, insurance providers also offer a variety of discounts up front.
3. Policy Gaps are less likely to occur:
It's a painstaking process to renew an expired bike insurance coverage. After a vehicle inspection, the insured must report a new Insured Declared Value (IDV), and the new premium amount is computed. The entire process takes a long time, and the policyholder may have to pay a higher premium rate as a result of the increased premium rate. A multi-year bike insurance coverage eliminates this danger, allowing policyholders to enjoy the advantages for up to three years without having to worry about renewing their policy.
4. Bonus for not making a claim:
Insurance firms offer policyholders a No Claim Bonus (NCB) if they have not made any claims on their policy in the previous year. It is, in a sense, a gift from the insurers for riding safely. In addition, if the policyholder receives a 20% NCB at the time of policy renewal on a multi-year policy, the discount will be applied to the following years as well.
5. Avoid Unnecessary Losses And Penalties:
In India, riding without a valid two-wheeler insurance policy is illegal. Furthermore, because nothing can be predicted, a person may find himself in a scenario where he needs to file a claim but is unable to do so due to an expired policy. If they are caught by traffic cops, they may be forced to pay substantial fines.
6. Cancellation of a policy is simple:
A multi-year bike insurance policy does not obligate you to keep the policy until it expires. You can cancel the policy at any moment and receive a refund for the premiums you haven't used. You must, however, purchase a new policy before canceling the old one. It's also vital to keep the No Claim Bonus from your previous policy.
What Are the Advantages and Disadvantages of a Long-Term Policy?
A person who purchases a long-term insurance policy is not affected by inflation increases in premium rates. They cannot, however, benefit from a decrease in premium rates because they have already paid their premiums. In addition, if they decide to sell their automobile, they may suffer a loss.
Is it better to buy or not to buy?
A multi-year two-wheeler insurance policy provides you with benefits that outweigh the disadvantages. Deflationary pressures on the premium rate are likewise unlikely. If you don't plan on selling your scooter anytime soon, a long-term scooter insurance policy could save you time and money.