7 Benefits Of Buying Long Term Bike Insurance Policy
Benefits Of Buying Long-term Two-wheeler Insuranc

Some bike owners might not be aware that they can buy long-term two-wheeler insurance for their beloved bikes. In fact, it has been made compulsory for bike and car owners to buy a long-term insurance policies. This rule was enforced from 1st September 2018 by the IRDAI following a Supreme Court order. Long-term two-wheeler insurance is far more beneficial than a short-term or an annual policy. It offers longer coverage, lower premium, and additional discounts.
Benefits Of Buying Long-term Two-wheeler Insurance
1 No Hassle Of Annual Renewals
It’s easy for someone to forget the date of bike insurance renewal. But, this can have serious financial implications in case of an accident. The insurance company will repudiate a claim filed against an expired policy and the owner will have to bear the cost of repairing damages to the bike.
Moreover, if third parties are involved in an accident, the owner will have to arrange for a compensation for paying them as well. In short, the entire cover provided by the insurance policy will be blown off. With a long-term bike insurance policy, one can relax for the next 3 to 5 years depending upon the tenure and forget about renewals during that time.
2 Discounted Premium
IRDAI increases the cost of a new insurance policy every year. On an average, the cost makes around 10-15% of an upward shift with respect to liability only policies. In the case of a long-term policy, the increased cost will not affect the owner every year. Long-term policies ensure a stable premium rate for 3 to 5 years straight.
3 Higher NCB
The NCB i.e. the No Claim Bonus cycles for long-term and short-term policies are not calculated using the same formula. If you buy a long-term policy, you are likely to get around 5% more discount on the cost of your bike insurance policy as compared to a short-term policy. Thus, you end up getting more discount just by opting for a long-term policy.
4 NCB Stays Intact
The NCB cycle of a short-term policy can drop to zero in case of a break-in policy. That is, if a bike owner does not renew an expired policy for a long time, he/she will automatically lose the accumulated NCB. If the same owner chooses to buy a long-term policy, the NCB will only drop when a claim is raised against the policy and not due to a lapse.
5 Insurance Cover Is Intact For A Longer Time
Buying an insurance policy for your bike will ensure a layer a financial security in the event of accidents. If it is a comprehensive policy, the coverage extends to own damage as well. Apart from accidents, a comprehensive insurance policy will offer coverage against theft, vandalism, and calamities too. A short-term policy offers this coverage only for a year. A long-term policy, on the other hand, will offer the insurance benefit for 3 to 5 years at a stretch.
6 The Policy Does Not Lapse Before 3 Years
After a bike insurance policy lapses, the owner needs to buy a fresh one for a vehicle. To issue a fresh policy, an insurer may have to inspect the bike again. The entire process may take a couple of days during which the owner is vulnerable to a number of unfortunate events. The chances of a lapsed long-term policy are less as compared to short-term policy.
7 Easy Cancellations
Once you buy a long-term policy, you can get it canceled easily. You would want to cancel a policy in case you face issues with the insurer, are not satisfied with the service they offer, or if you unknowingly bought the wrong insurance policy that is leaving you either under-insured or over-insured. You can get the policy cancelled and get a refund of the remaining policy period on pro-rata basis. Then you can buy a suitable policy and stay insured.
Buying Long-term two-wheeler Insurance
The process of buying a long-term insurance plan for your bike is similar to buying a short-term or annual insurance plan. You can either buy bike insurance online or offline through an agent or directly from an insurance company.
If you choose to opt the digital method, visit your insurer’s website, say you choose Acko General Insurance. Visit www.acko.com and enter details related to you and your bike, choose the right coverage and make the payment. If an inspection is not required, your bike insurance policy will be sent to your inbox instantly. According to numerous customer testimonials, Acko’s price model and claim process are among the best in the country.
As mentioned earlier, if you choose to buy a plan offline, you can either approach an insurance agent or visit an insurance company’s branch office directly. Another way is to get in touch with an insurance aggregator that deals with motor insurance policies offered by various insurance companies.
Don't miss the most important news and views of the day. Get them on our Telegram channel
First Published: Oct 12 2018 | 2:46 PM IST