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When purchasing two wheeler insurance, it is as important to take into account the duration of the plan as much as it is essential to look into the type of insurance and premiums you will be liable to pay. While renewing your two wheeler policy every year is the conventional way to go about the process, the Insurance Regulatory Development Authority of India (IRDA) also allows insurers to offer an extended policy term for two wheelers.
This means that instead of taking the trouble of renewing the policy every year, you can opt for a policy that lasts you for three years. Here are five reasons why long term insurance plans make more sense.
1) Non-Renewal of The Policy Does Not Affect You
If you do not renew your policy in time, your policy lapses. Your two wheeler can meet with an accident or can get stolen and you may have to pay for this financial loss out of your own pocket. When you opt for a long term plan however, these fears do not affect you, every year.
2) You Enjoy Fixed Premium Rates Why
When you renew your policy after a year, noticing a slight increase in premium is common. This usually happens owing to a yearly hike in third party premium with the consent of the regulatory authorities. Buying a long term two wheeler insurance policy ensures you steer clear from such hikes. The premium rates are fixed when you purchase the policy and remain unchanged all through the three years.
3) You Obtain a Discount on Your Own Damage Premiums
When you purchase a long term insurance plan, you decrease administration work of the insurance company as well as minimize the overall cost of operations. This earns you a discount on the Own Damage Premium since the savings can be passed on to the customer. However, you need to read the terms and conditions of a policy before signing up for one. Not all insurers offer this benefit.
Related : 5 smart ways to save on two wheeler insurance
4) The Advantage of No Claim Bonus
When it comes to No Claim Bonus (NCB), going in for a long term insurance plan comes with a better advantage. The structure of the NCB slabs, when it comes to renewing a long term policy, are very different from the NCB slabs that govern one year policies. All in all, you are entitled to a higher percentage of NCB when you opt for long term plans. Also, if a claim is made during a long term policy, you do not completely lose the NCB, as it is true with one year plans. While the NCB still holds validity, you are just subjected to certain limits.
5) It is a Convenient and Effortless Alternative
If you have to take into account various policies and their expiry dates at one time, it can be cumbersome but with long term plans there is no need to track expiry date on a yearly basis. You also do not have to go through the burdensome task of renewing a policy, at least for the next three years. Your two wheeler stays insured and is under no risk or threat for a long time.
These are just a few advantages long term two wheeler insurance provides you with. All in all, make sure you compare the various plans appropriately and carefully before signing up for the best one.
Article Posted By : gautampradhan On May 27, 2018lView All Articles
My name is Gautam Pradhan. Post graduated in finance & work as a financial adviser. I like to read & write stories related with Finance, Insurance & Loans. My aim for writing is to explore important aspects of these fields so that people can take dicision without any confusion.
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Keywords : two wheeler insurance