Despite two-wheeler insurance being mandatory in India, nearly 75% of two-wheeler owners don’t have any motor insurance. People either don’t buy any motor insurance in the first place or even if they do, they fail to renew it in a timely manner.
To tackle this issue, with IRDA’s permission, some of the insurance companies have launched long-term two-wheeler insurance policies. This will address the problem of non-renewal of insurance policies.
The benefits of long-term policy:
Convenient: No more pain of yearly renewals because there is no need to renew the two-wheeler insurance policy every year. Currently, there is a plan available for 3 years.
Save more: For every policy, at the start of the first year, the premium for the third-party liability is frozen. So you can now save on the premium. In regular yearly policies, the policy premiums are hiked nearly 20 percent annually due to inflation. A long-term insurance plan gives you immunity against inflation too.
Higher no claim bonus: When you compare the NCB (no claim bonus), long-term policies have an edge over short-term policies. This is because when you claim for NCB at the time of renewal of a long-term policy, the discount amount given is applicable not for one year, but for three years!!