It is illegal to drive any vehicle without the mandatory third-party insurance in India. As a bike owner, you can either purchase separate third-party insurance or a comprehensive insurance policy. Furthermore, to extend the coverage of your comprehensive insurance plan, you can opt for add-ons.
However, when it comes to the renewal, it is always better to have a comprehensive insurance plan that typically has a tenure of 1, 2 or 3 years. In this blog post, we will discuss the perks of having a comprehensive plan for the long term.
Long-Term Two-wheeler Insurance Policy: Key Benefits
Some of the benefits of long-term Two-wheeler insurance are listed below:
1. Saves You from Price Hikes
Every year you’ll find the cost of insurance policies getting hiked up and becoming expensive over time. If you buy a long-term two-wheeler insurance policy, you’ll save yourself from the price hikes. You may be able to save 20-40% of the money on annual renewals.
2. Alleviates the Hassle of Policy Renewal
Another significant benefit of buying a long-term two-wheeler insurance policy is that it alleviates the hassle of policy renewal every year.
Several times, bike owners forget to renew their insurance policies, and it’s common. They stay unaware of their expired insurance, which can be dangerous.
If you buy two-wheeler insurance for 3 years, you won’t have to renew it every year. Also, you get rid of all the hassles involved in the insurance renewal process, like getting the vehicle inspected, entering the two-wheeler details again, and more.
3. Avail Discounts on Premium
If you buy long-term insurance, you’ll only have to pay the premium for the next 3 years. This is offered at a lesser cost than the premium amount for an insurance with 1 year validity. So, purchasing long-term vehicle insurance helps bike owners lower their overall premium.
4. Alleviates the Stress of Policy Expiry
In India, it is illegal to drive an uninsured vehicle.
According to the New Motor Vehicles Act, you may be imprisoned for 3 years or required to pay a penalty of Rs. 2,000 or both. With long-term insurance, you will alleviate the hassle of policy expiry for at least 3 years, helping you drive worry-free.
Plus, once a vehicle insurance policy expires, you’ll have to undergo the lengthy documentation work and inspection process again to purchase a new policy. Thus, having a long-term policy on a single purchase keeps you away from penalties and multiple hassles.
5. You’ll Enjoy No Claim Bonuses
You get no claim bonus (NCB) from the insurance company in the form of renewal discounts on the own damage part of the insurance. For every claim-free year, you’ll be entitled to NCB as a policyholder. If you claim on your vehicle insurance policy in a year, you won’t get any NCB in the upcoming year.
However, purchasing long-term two-wheeler insurance helps you avoid losing out on NCB. It’s because the NCB for the years is taken into consideration while calculating the premiums of such policies.
6. Enjoy Optimal Safety
Apart from attracting traffic fines, driving a bike without insurance exposes your two-wheeler to specific risks and hazards.
For instance, if your bike gets damaged during an accident or stolen, you won’t get any compensation money when a valid insurance policy is absent. In that case, you’ll have to bear the expenses of replacing or repairing the vehicle.
However, if your long-term insurance policy comes with multi-year damage coverage, you can enjoy optimal financial security for your vehicle. It will keep you protected against any mishap right from covering accidental damage to your repair costs. It takes care of all.
Purchasing a long-term two-wheeler insurance policy brings a lot of benefits for all. Apart from eliminating the hassles of policy renewal every year, it benefits two-wheeler owners with enhanced coverage, higher NCB, and discounted premiums.
You can choose to buy the comprehensive policy Kotak Long Term Two Wheeler Secure from Kotak General Insurance where you can renew your vehicle insurance online without having to undergo any hassles of policy renewal.
Disclaimer: The content provided is for education and informational purpose only, none of the information contained in our blog amounts to any form of opinion or advice. Please go through policy related documents carefully or consult an expert before making any insurance-related decisions.