Buying a longer tenure #policy is not mandatory, but an option. One main advantage of buying long-term #insurance is that you need not worry about renewing your policy annually. A break in renewal can delay a policy purchase process in future. Onc
A two-wheeler rolls out of showrooms with cover, thanks to a mandatory clause and offers from auto dealers and brokers.
e the policy lapses, most insurance companies insist on inspecting the vehicle before renewing it or issuing a fresh policy.
Motor law in India makes third-party insurance cover mandatory. It covers the liability of a third party in case of an accident. Insurers say the three-year tenure will reduce cost of issuing policies, administering them and follow-ups for renewals. This could also lead to lower premiums as insurers could pass on the saving to the customers.
The insured will get a 30% discount on the three-year cover and will be entitled to no-claim bonuses post the tenure. The company offers discounts of 20% and 30% on two-year and three-year policies respectively. You could also save on premiums if you buy a long-term third party liability cover as IRDAI hikes third party cover tariffs by 20% every year.
If market premiums go down in future, people with long-term policies will be locked into a higher rate. They will also not be able to perk up the quality of cover during the tenure of the long-term insurance. However, going by the rising inflation one can safely say that prices are never going to come down. So, go buy the long term insurance and buy yourself the peace of mind.
Do you know among 10 crore two-wheelers in India, approx. two-third are not insured. A two-wheeler rolls out of showrooms with cover, thanks to a mandatory clause and offers from auto dealers and brokers. But, by the second year, most fall out of the insurance net. To combat non-renewals, the Insurance Regulatory and Development Authority of India (#IRDA) had, last year, allowed long term two-wheeler insurance policies with tenure of up to three years. As of now, only New India Assurance has launched a long-term two-wheeler motor policy, though many companies are likely to introduce such products in near future.