A Long Term Two-Wheeler Insurance plan is similar to a one-year DTH or internet plan in that you can pay a few of the periodic payments in one go to make things easier while taking advantage of your provider's benefits and discounts.
Consider a Long Term Two-Wheeler Insurance plan if you're the type that wants to pay in advance. Here's all you need to know about Insurance so you can decide if it's suitable for you:
What is a Two-Wheeler Long-Term Insurance Plan?
A Long Term Two-Wheeler Insurance plan, like a conventional one-year Two-Wheeler Insurance plan, protects your two-wheeler against damage or loss. The period of a Long Term plan differs from that of a Short Term plan, which is typically 2–3 years.
As a result, by paying the premium in advance for 2–3 years, you can enjoy continuous protection for your bike and avoid the need to renew every year.
Why should you think about a long-term two-wheeler insurance plan?
Take a look at these Long-Term Two-Wheeler Insurance benefits before making your next Bike Insurance purchase.
1. Potential upfront premium savings of up to 20%–40%
Every year, the Insurance Regulatory and Development Authority of India (IRDAI) may increase the premium for the third-party liability portion of two-wheeler insurance by up to 20%. When you purchase a Long Term plan, you may be able to avoid two increases in the third-party premium as well as the service tax.
2. Benefit from the No-Claim Bonus even if you have filed a claim.
Once a claim is lodged, the No-claim Bonus granted in a normal one-year Two-wheeler Insurance policy is forfeited. The bonus is reduced and does not become nil in the case of Long Term Two-Wheeler Insurance contracts. For example, if the NCB at the time of purchase of a 3-year policy is 35 percent, and a claim is made in the second policy year, the NCB for that year is lowered to 20%, rather than 0%, as it is in a single-year policy.
3. Keep yourself safe and stress-free.
When you purchase a Long Term plan, your vehicle's financial security is assured for 2–3 years. If a one-year insurance is not renewed and lapses even for a single day, it could be dangerous, as no claims will be honoured by the insurer if an unfortunate accident occurs during that time. You may ride worry-free with a multi-year Insurance plan, with no worries about financial liability stemming from an unanticipated catastrophe.
4. Cancel your policy and receive a refund of your premiums if you file a claim.
If you choose to terminate your policy after making a claim, you can do so and receive a refund for the premiums paid for the remaining years. If you submit a claim on a single-year plan, on the other hand, you will not be eligible for a premium refund when you terminate the policy.
The cancellation terms and conditions differ from one insurer to the next and should be studied before purchasing a policy.