Real facts about long-term two-wheeler insurance plans


An individual owning a two wheeler can get covered under the umbrella of a long-term insurance plan. Do you know the benefits and actual facts of such a plan? This article gives an insight into the real facts of long term two-wheeler insurance plans.

According to the motor laws of India, it is illegal for a person to ride a two-wheeler without having valid insurance for the vehicle. It is mandatory that every two-wheeler should be insured. There are times when people tend to forget to renew their insurance policy and the insurance policy becomes void. This can become quite a hassle as renewing or purchasing a new insurance policy every year or two can become time consuming and a hassle for people, especially when they forget to renew it before the set due date.

This will soon change as the Insurance Regulatory and Development Authority of India (IRDAI) has introduced a new long term two wheeler insurance option in 2014. This comes as a blessing in disguise to people who fail to renew their insurance policy on time as this policy does not have to be renewed every few years. If you own a scooter or bike, it is advisable to opt for a long term insurance plan.

An individual can get covered under the umbrella of a long-term insurance plan. A vehicle owner will reap the benefits of a long-term plan throughout the tenure of the policy period. This means that if the policyholder's two-wheeler meets with an accident or gets stolen, the insurer will pay and cover any losses incurred by the insured. The insurance company will also pay for any damages or repairs that need to be done including replacement of parts.

Know about Long Term Two Wheeler Insurance

Protected for a long-term

An individual can get covered under the umbrella of a long-term insurance plan. A vehicle owner will reap the benefits of a long-term plan throughout the tenure of the policy period. This means that if the policyholder's two-wheeler meets with an accident or gets stolen, the insurer will pay and cover any losses incurred by the insured. The insurance company will also pay for any damages or repairs that need to be done including replacement of parts. If the insured has taken out a zero depreciation cover on his/her vehicle, the insurance company will pay for the entire cost of replacing or repairing damaged parts of the vehicle.

No more worrying about renewals

It can become a big hassle when it comes to renewing a two wheeler insurance plan, especially if you have multiple policies. Picking up a long-term policy eliminates the need to keep a tab on your insurance policy for renewing it without missing the due date. All you have to do is go to a two-wheeler insurance company or website, purchase the policy, and forget about renewing it for a few years.

Purge the risks arising from non-renewal

Long-term insurance policies eliminates any risks associated with non-renewal of a vehicle. Insurance companies have a rule of inspecting your two-wheeler before they approve your request for insurance renewal. When a two-wheeler owner chooses a long-term insurance plan, the owner will not have to worry about having their vehicle inspected for a couple of years until its time to renew their vehicle insurance.

Premium hike versus long-term premiums

Yearly premiums are susceptible to premiums hikes which can vary between 10-20% for third party premium rates. However, the IRDAI has fixed the premiums that an individual will have to pay in the case of a long-term insurance plan. Therefore, the individual will not have to pay varying premiums every year as in the case of two-wheeler insurance policies that are purchased for a period of one year.

Higher No Claim Bonus (NCB)

At the end of the term of a policy, an individual is entitled to a No Claim Bonus (NCB) for each successive year in which a claim has not been made. This bonus is basically a discount that is levied on the renewal of premium rates. A long-term two-wheeler insurance policy comes with a higher NCB when compared to the discount that you get with a single-year policy.

Avail NCB protection

With each claim made in the case of a one-year insurance policy, the policyholder loses the No Claim Bonus the moment a claim is made by the insurer. But with a long-term insurance policy, a policyholder's NCB does not become zero when a claim is made. Instead, the value of the NCB reduces with each claim that is made during the period of the policy.

Minimal documentation

Long-term insurance plans do not require a lot of documentation to be done at the time of purchasing a policy. A lot of insurance companies have begun selling insurance policies online as this minimises the time spent on procuring a policy as well as minimizes the amount of paperwork that goes into it. An individual can purchase a policy online without producing a number of documents to get a long-term insurance policy. The individual simply has to go online, purchase the policy after providing a few details such as the plan you require, the coverage that you want, premium that needs to be paid, and then you can make your payment.

There are a number of insurance portals, such as bankbazaar.com, that provides an easy and hassle-free process of procuring a long-term insurance plan that will best suit your needs and requirements. In summary, a long-term insurance plan can prove to be quite useful for any two-wheeler owner.


Attachments

Related Articles

What are the Eight essential principles for Term-policies

In this article, I would like to present the information regarding 8 important principles Term-policies. In present advanced world, anything can happen to anyone, so Insurance is compulsory for every individual for many reasons. This article will help to know about the important factors that have to be taken into consideration before opting for Term-policies.

What the are special insurance policies for women?

Now the Insurance Companies are searching newer insurance products for women which aim at changing the products from what it was perceived earlier on. It has become redundant for the male alone to buy the insurance products when women too are earning. What those insurance products are the subject matter for discussion of this present article.

Specialities Of Family Floater Health Insurance Policy

Family Floater Health Insurance policies are in great demand nowadays. It assures health coverage for all family with a small amount. Every insurance companies provides such schemes. This article deals with the specialities of family floater policies. It also introduces some best family floater policies of Indian insurance companies.

What is Deposit Insurance?

Deposit Insurance is a measure to provide trust to the investors in many countries to protect the deposit amount of investors in banks. Let’s educate more about the Deposit Insurance.

More articles: Insurance Plans Insurance Accident Insurance Insurance tips Automobile Insurance Online Insurance Policies

Comments

Author: DR.N.V. Srinivasa Rao08 Jun 2017 Member Level: Diamond   Points : 2

The article has given the benefits of long term insurance policy for two wheelers. But as far as my knowledge goes, MV act asks about 3rd party insurance also. What I mean is if an accident took place and a person got injured, 3rd party insurance will cover this also. In this long period insurance is 3rd party also covered? The author has not mentioned about this. If that point is clarified the readers will have a better understanding regarding going for this long term insurance policy.



  • Do not include your name, "with regards" etc in the comment. Write detailed comment, relevant to the topic.
  • No HTML formatting and links to other web sites are allowed.
  • This is a strictly moderated site. Absolutely no spam allowed.
  • Name:
    Email: