Insurance Regulatory and Development Authority of India (IRDAI), the top insurance regulator, updates rules to accommodate India’s growing two-wheeler population and increasing accidents. If you’re buying two-wheeler insurance, you’ll come across five-year policies. Are they mandatory for all bikes? How do they compare to one-year policies regarding coverage and premium impact? #
Regarding Five-Year Two-Wheeler Insurance And How It Operates:
Since September 2018, IRDAI has mandated a five-year insurance policy for new two-wheelers to ensure widespread coverage and reduce lapses in policies. Note that this applies only to third-party (TP) insurance, as required by the Motor Vehicles Act 1988. #
For new bikes with basic third-party insurance, opt for a five-year policy. But if you choose comprehensive insurance, it’ll be a three-year term, not five.
What Effects Does Purchasing Long-Term Two-Wheeler Insurance Have?
Having a five-year or long-term two-wheeler insurance coverage can have many benefits from the policyholder’s viewpoint as well. Examine how this action can benefit you.
- You’ll Spend Less On Premium: A five-year two-wheeler insurance policy requires a single premium payment, locking in the rate to shield you from annual premium rate hikes. While IRDAI adjusts third-party insurance premiums yearly, you remain unaffected during your policy’s duration, resulting in lower costs. ##
- You Won’t Have To Bother With Yearly Policy Renewal: A five-year policy eliminates the need for you to renew bike insurance every year, reducing the risk of riding uninsured and the financial burden of accident-related expenses. You’re covered for five years with a single premium, ensuring consistent protection and peace of mind.
- You Can Save Your No Claim Bonus:Keep your No Claim Bonus (NCB) by avoiding claims in a motor insurance policy. It provides a premium discount at renewal for each claim-free year. With a one-year policy, a single claim forfeits the NCB. In a five-year long-term policy, NCB remains intact, decreasing to the prior percentage slab each year.
- Should The Policy Be Cancelled, You Receive A Refund:A five-year long-term two-wheeler insurance policy safeguards your full No Claim Bonus (NCB) and prevents the forfeiture of the entire premium in case of cancellation. If you cancel for a valid reason like total loss or theft, you’ll receive a partial reimbursement for the remaining years or the unused portion of the term.
Even though the new requirement of a 5-year policy term for bike insurance will require some getting used to, this is unquestionably a well-considered move that offers numerous advantages to the policyholder.
You can purchase three-year comprehensive two-wheeler insurance coverage or five-year third-party bike insurance online through an online aggregator site, or you can buy two-wheeler insurance straight from the insurance provider by going to their website.
*Standard T&C Apply
#Visit the official website of IRDAI for further details.
##All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
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