Long term Two-wheeler Insurance
Want to know about long term bike insurance policies? Know whether it is mandatory to buy bike insurance policy for 5 years.
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Motor Vehicles Act, 1988
In keeping with the increasing number of bikes every year and the number of accidents each year, IRDAI had made a few changes to Bike Insurance policies.
As everyone might know, having a minimum third party bike insurance policy is mandatory as per motor vehicle act of India. It is done to ensure legal liability and protection against financial losses endured in an accident. Driving without valid bike insurance may cost you heavy fines and even to lose your bike license.
Did you know that there is a long-term bike insurance policy for 5 years for your bikes? Is it mandatory for every bike owner to purchase a long term policy of 5 years? This article is about clearing confusion related to this topic. Read on to know more.
Bike Insurance for 5 years
According to a Supreme Court Ruling in 2018, IRDAI has made it compulsory for all new two wheelers to be issued a five year old insurance cover. It has been implemented to make sure that all the vehicles stay insured and to reduce policy lapses and policy expiry.
Kindly note that this 5 year policy is available only on third party liability coverage. If you decide to buy comprehensive bike insurance policy, then it is available on a long-term basis of only 3 years.
Advantage of Long term bike insurance policy
Save on Premium
Compared to buying a third party liability on a yearly basis for 5 years, the long-term bike insurance policy which comes for 5 years at once, comes at a reduced premium
Refund upon termination
In the event if you decide to terminate the policy ( loss or theft), you will be refunded a percentage of the premium and not suffer total loss.
No Claim Bonus
If you do not raise a claim for five consecutive years, then you have a good chance to get NCB bonus upto 50%. Even if you raise a claim, NCB does not become void. It just reduces the percentage slab, so that you still get the benefit of NCB.
No Hassles of Yearly renewal
Everyone’s busy these days. They simply cannot find the time to devote to buy a bike insurance policy on a yearly basis. You may be out of station at the time of end of the policy period or be occupied with some other stuff. A long-term policy avoids all these hassles and keeps your bike insured.
Choosing the right 5 year plan for Bike Insurance
Choosing the best and most appropriate 5 year insurance policy for your bikes requires some research.
There are so many companies in the market offering 5 year bike insurance plans. You should compare the plans and features of various insurance providers and select the one which comes up close to your expectations and budget.
At Fincover, you can find a range of long-term bike insurance policies for different kinds of vehicles. With our easy-to-use platform, you can compare the features and benefits of multiple insurance providers and take a well-informed decision.
