If you are not one of those super-organised people who records and remembers absolutely every chore that is to be done, it is possible that at least once or twice in the past, you have forgotten to renew your motorcycle’s annual insurance policy. If your luck was really bad then, it probably happened on a day when you had a zillion things to do and in the midst of all that, you had to resort to taking public transport to work. Unfortunately, not everyone plays safe and takes a bus to office under such circumstances. In fact, close to 70 per cent of the two-wheeler owners in India don’t renew their two-wheeler’s insurance after the first year. This is despite the fact that it is illegal to ride a scooter or a bike without an insurance policy. One could even say that the most important thing a two-wheeler needs after petrol is an insurance policy.
All the same, renewing insurance policies annually is a painful task. It almost seems like it was only a month ago that you had coughed up cash for the policy, and here you are again, having to take time off work to renew your policy. What one really needs is a good multi-year insurance policy option, where one can just pay up once and forget about it for a few years.
Now, thanks to IRDAI, every two-wheeler in the country can be bought with insurance coverage for upto 3 years. This new feature has been launched to reduce the hassles in a rider’s life.
Read on to find out why it makes more sense to buy a multi-year two-wheeler insurance rather than sticking to the same old, tedious annual policy-renewing process.
Upfront Discounts Mean More Savings
Insurance companies tend to offer more discounts on multi-year insurance policies. These discounts and incentives are offered because the overall administrative costs come down as a result of the long term plans. All in all, this accrues huge savings for all parties concerned. In fact, the average cost per year for policies in a multi-year insurance plan is comparatively lesser than conventional annual policies.
Say Good-Bye to yearly renewals
Having a long-term two-wheeler insurance is convenient and hassle-free. We don't need an annual reminder to renew our two-wheeler insurance policy. This becomes a tedious task when there is more than one two-wheeler at home, which is quite the norm these days. If the policy lapses, the insurance company will want to send one of their associates to examine the two-wheeler in detail before issuing a new policy. This can be completely avoided when you opt for long-term insurance policy.
Protection from yearly hikes
IRDAI tends to increase the cost of 3rd party liability cover insurance each year. So every year, when your two-wheeler is up for renewal, you are bound to pay a little extra each year. However, with a long-term insurance cover, you are protected from such hikes.
No Claim Bonus Benefits
No Claim Bonus or NCB is a discount that is offered by insurance companies in case you haven’t made a single claim during the last term. In case of single-year insurance policies, the NCB will fall to 0 in the case of claims. But in the case of long-term insurance, even if you make a claim, for example in the 3rd year, it won’t go back to 0. Depending on the NCB structure of the company, a revised discount will be applied.
Easy Cancellation
In case you want to change your insurance company after the completion of the first year, it’s an easy process. You first buy an insurance policy from a company and then send an application to cancel the existing long-term policy. Once processed, you will receive the necessary refund from the old insurance company. Plus, the NCB can be transferred as well through an NCB retention certificate.
Avoid Fines & Be Safe
Riding with an expired policy is illegal in India. So expect a huge fine if and when you run into a traffic police person. Plus, in case of an unforeseen circumstance, if the vehicle incurs some major damage, you will have to pay for the entire repair cost from your own pocket.
