It is illegal to drive/ride without insurance for your vehicle. Despite that, in India, there’s a high percentage of uninsured two-wheelers. This is mainly due to the one-year insurance policies that were prominent till recent times. But now, the law has been revised, and the Insurance Regulatory and Development Authority of India (IRDAI) has permitted the insurers to have 3-5 year-long policies. This extended insurance period has provided multiple benefits, such as:
Save big on Premiums
Insurance companies cannot sell third-party insurance policies at rates more than what is fixed by the IRDAI. But the regulatory authorities hike the premium rates up to even 20% each year. With one-year policies, the increased premium rates would be a huge financial burden. The long-term insurance plans help save on high premium rates as the premium amount would not change within the insurance term.
Avoid Policy Lapse
Renewing policies every year can be a hassle and even more inconvenient in case it lapses. Even more so, riding without one is a punishable offence. With a long-term plan, the annual renewal burden is reduced, and the consequences of a lapsed policy are avoided.
One of the most significant benefits of an insurance plan is the no claim bonus feature. It allows policyholders to get a discount on their premium if they haven’t filed for any claim in an insured year. In the case of a single-year insurance plan, one might lose out on the NCB benefit, especially if the policy lapses. The long-term insurance plan protects the NCB amount, and some insurers may even offer more significant discounts.
In case you wish to renew your vehicle’s policy 2-3 years after it has lapsed. In such situations, you might face rejections or financial losses and be answerable to doubts regarding your vehicle’s condition. Such policies after a time gap are termed break-in policies. A long-term insurance plan helps avoid rejections for break-in policies and unfavourable circumstances by providing long-term protection.
Cancel policy anytime you like
The long-term insurance plan can be a huge commitment, but if you are not happy with the insurance plan, you can always cancel the plan or switch to another insurer. All this can be achieved without losing out on your premium amount and the NCB benefit. The current insurer will refund the due amount and transfer the bonus to the new insurer’s plan.
Long-term insurance plans come with various valuable advantages and are the most recommended for all vehicle owners. Cholamandalam MS two-wheeler insurance can be purchased online in a simple, hassle-free process and provides riders with abundant long-term protection features.