Why you must always choose a Long-term policy in case of Two-wheelers

Any Insurance policy today is like your website or a domain. If you do not renew it on time, poof! Gone! And when you have to do all the drama to buy it back, then you end up paying much more than you paid for the original. 

We as Indians have a very old and fond relationship with two-wheelers. But numbers suggest that 75% of vehicle owners do not have two-wheeler insurance! Most people believe that it is easier to avoid the traffic police than to undertake the hassle of renewing the policy every year. After all, "yaar mamu ko 100 thama denge"!!!

But is it worth the amount you will end up paying if something goes wrong with your vehicle?

In an online poll conducted by Bharti AXA General Insurance, two wheeler owners suggested that the reasons for not renewing the policy was mainly the hassle of yearly renewal and sometimes forgetting the renewal. Over 80% respondents said that they would prefer buying 3 years long term two wheeler insurance.

Why a long term policy makes a lot of sense?

Basis a circular in August 2014, IRDAI, the regulatory body for insurers in India, allowed insurers to issue long term policies. The aim of the regulator was to limit the instances wherein people forget to renew their two wheeler policies every year and thereby reduce the number of uninsured vehicles on the road. If you are a two wheeler owner, this should come as a welcome change because:

• A long term policy is more convenient than having to find time in your busy schedule to renew your policy, and risk the lapse of the policy. Moreover, transacting online is easier as everything is on e-mail and can be accessed anytime and you don’t have to depend on hard copies
• In case your policy has lapsed, some insurers may insist on checking the condition of your two-wheeler before renewing the policy, which may come at an additional cost and hassle of providing your two-wheeler for pre inspection. To avoid this, get a 3-year long term policy and you will not have to go through the hassle of annual renewals
• You can avoid risks that arise from being uninsured in case you forget to renew your policy, for example, in case of an accident or if your two wheeler is stolen. In case of a total loss claim within the policy duration, you stand a chance of refund of proportionate premium
• You can avoid an increase in premium during the policy period. No premium increase takes place during the policy period even due to losses or revision in insurance price
•  You are eligible for a higher No Claim Bonus (NCB) in case of long term policies and even if you do make a claim, the NCB slab does not reduce to nil

Long Term Package Policy: Coverage and features

With Two-Wheeler Long Term Policy, you get to enjoy every one of the benefits listed above. Still not convinced? Here are some features of this one-of-a-kind long term two wheeler policy:

• The policy provides for the following additional covers on payment of a little extra premium:
• Provides personal accident cover (compensation in the event of injuries, disability or death caused solely by violent, accidental, external and visible events) for the insured and any named or unnamed passenger(s) up to Rs.2 lakhs per person which covers accidental death and total/partial disability.
• The policy allows you to choose a voluntary deductible ranging from INR 500 - 3,000 that can substantially reduce your premium outgo in addition to the discount availed in case of opting long term policy.