4 min read
Updated on Aug 08, 2023
Neerav didn’t like hassles. He was a smart guy and did smart work. He had a trendy bike but didn’t like the associated bike insurance plan which demanded annual renewals. He found such annual renewals inconvenient. That is why, most often than not, his policy lapsed. Renewals were done when he got time which, for him, was in scarce supply. Once, when renewing his bike insurance policy, Neerav came across long-term two-wheeler plans. What a blessing they were! He bought a plan once and was free from the hassles of renewals for 3 straight years! He couldn’t have asked for more.
Thanks to IRDA’s current regulations, you, like Neerav, can find long term insurance plans for your two-wheelers. These plans have a term of 2 or 3 years and cut down on the inconvenience of annual renewals. Currently only two-wheeler insurance policies have a long-term tenure. Do you know how beneficial these long-term policies are? Let’s find out:
Long-term policies reduce the hassles of annual renewals: Renewing the two-wheeler insurance policy year-on-year is a hassle. Who remembers the renewal date! Even if the insurance company sends a reminder, most of you seem to put off renewals till the last possible minute. The result – you forget and the policy lapses. A lapse is bad and should be avoided. Long term plans cut down on the hassle of regular renewals. You pay the premium once and enjoy the coverage for a longer tenure.
The premium rates are lower compared to annual plans: The premium of a long-term policy is cheaper compared to the premiums of three years’ annual bike insurance policy added together. This is because, the premium rate increases every year for third party coverage. But, when you buy the policy for a longer tenure, the premium gets frozen and doesn’t change every year. Moreover, insurance companies also give you a premium discount on the ‘own damage’ premium if you buy a policy for long term. As such, you benefit from lower premiums.
Your IDV also remains constant: The Insured Declared Value (IDV) of your bike is the market price of your bike adjusted for depreciation. Every year, as your bike gets old your IDV reduces. A lower IDV means you get a lower claim in case of theft of your bike or in case of total loss. In annual policies, the IDV reduces every year. However, in long-term policies, the IDV remains the same. Thus, you get the benefit of a higher claim amount if your bike gets stolen or is damaged beyond repairs.
You don’t lose out on the No Claim Discount: Every year, when you don’t make a claim in your two-wheeler insurance plan, you earn a discount in next year’s premium. This discount helps you lower your premium outgoes. Moreover, the discount is cumulative in nature and increases every claim-free year. However, if you make any claim in an annual policy, any accumulated discount you have earned becomes zero. You don’t get any discounts in the next year’s premium and thereafter, you start from scratch. The case is different in long-term insurance plans. Under these plans too you get a No Claim discount which accumulates every claim-free year. However, even when you make an insurance claim you don’t lose out on the entire discount. The earned discount is simply reduced a little but it still gives you a discount in the subsequent premiums. For instance, in an annual policy, if you do not make any claim for 3 consecutive policy years, you earn a discount of 35%. This discount becomes 0% if you make any subsequent claim. In case of long-term plans, you earn a discount of 30% which is reduced to 25% if you make one claim in the first policy year or 20% if you make a claim in the second policy year. Thus, you don’t lose out on the discount.
So, in conclusions, long-term two-wheeler insurance plans are the best bet. They eliminate the need of annual renewals, preserve the bike’s IDV and also save premium outgoes. Neerav found a smart solution for his smart self in the form of a long-term two-wheeler insurance plan. What about you?
Also Read: How Many Claims Can Be Raised in Two-wheeler Insurance Policy | How to Choose The Best Two-wheeler Insurance Online? | A Complete Guide To Know About Two Wheeler/Bike Insurance Policy in India | Top Tips To Get Two Wheeler Insurance Quotes Online | Bike Insurance Background Check in India – What is a Two Wheeler Insurance Background Check and Why It is needed?
Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
With lives becoming busier and more demanding, people are getting loaded with all sorts of burdens. These weights hamper the functioning of our brain and.
As a youngster with the pressure of studies and other activities, students might feel exhausted if they have to commute via public transport to college.
On average, 100 million bikes and 67 million cars are produced every year across the globe. With such a humongous number, you can assume the.
The performance of your bike or the way it runs depends on various things, including the quality of your two-wheeler tyres. Alloy wheels and spoke.
You cannot ride a two-wheeler without insurance, at least not without the mandatory third-party insurance. But what if the policy you bought for your vehicle.
Acquiring a new bike is an exciting time of your life. A bike gives you the liberty of mobility and a sense of confidence. However,.
For a rider, the sense of freedom while riding a bike is exhilarating. However, the thrilling adventures on the road can take an unfortunate turn.
Until recently, Motorcycles occupied the two-wheeler segment in India. However, the trends are changing now with scooters taking over the market slowly and steadily. Let.
India is one of the countries with a vast two-wheeler or scooter market. Manufacturers keep bringing in new scooter models to make this vehicle as.
Speak to our advisor
Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800
Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).
Insurance is the subject matter of solicitation.
For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.
Copyright © 2023 Mahindra Insurance Brokers. All Right Reserved.
Verify your number to activate your best premium offer
Please enter the OTP sent to XXXXXX 4099 to continue