InvestorQ : What are the benefits of taking a long-term two-wheeler insurance?
Neha Samdani made post

What are the benefits of taking a long-term two-wheeler insurance?

Radhika Arya answered.
3 years ago

A few insurance companies offer long-term two-wheeler insurance plans that have tenure of 2-3 years, vis-à-vis the usual one-year insurance duration. A long-term two-wheeler insurance is useful because as a vehicle owner, you can just purchase your policy and forget about renewal for at least 2-3 years.

The varied benefits of opting for a two-wheeler insurance are:

- You can avoid paying the third-party premium hikes that are made regularly

- You’ll receive coverage for up to 3 years which is a relatively long period

- A long-term two-wheeler insurance policy helps you stay away from service taxes. This is very helpful as you will not incur any additional expenses during your policy period.

- If you make a claim during your long-term policy period, your no-claims bonus (NCB) will only decrease. It will not become zero. In contrast, if you make a claim with a normal two-wheeler insurance policy, then your NCB will become non-applicable

- Your third-party liability premium will not get modified at all during a long-term policy period.

- You can enjoy getting a discounted premium when you take a two-wheeler insurance policy for a long period.

- If you file a theft claim or a total loss claim, you can get a refund for your policy for the remaining policy period. However, this depends on your insurance company’s internal rules and regulations.

- You will receive an additional no-claims bonus (NCB) benefit when you renew your long-term policy.

- If a regular insurance policy lapses, many insurance companies tend to make it mandatory to examine the two-wheeler before providing a new policy or renewing the existing one. This process can be avoided by taking a long-term policy.

One of the major disadvantages of taking a long-term insurance policy for your two-wheeler is that its pricing is dynamic. This means, if overall insurance premiums go up, then its highly likely that you’d have to shell out more money for your existing insurance plan.