The main reason why you buy a third-party bike insurance plan is that you will be protected against third-party losses for a period of five years. Consider the amount of out-of-pocket fees you’d incur if you didn’t have this coverage, not to mention the headaches of renewing it every year.
In this post, we’ll show you how a long-term Third-Party Bike Insurance Policy may help you avoid extra costs if you injure someone else while riding your covered bike.
If you’re new to the notion of planning to buy a new bike, here’s what long-term third-party insurance is and why you should acquire it.
What is two-wheeler third-party insurance for the long term?
Third-party losses can take many forms, including third-party property damage, injury, incapacity, or death. Paying them a significant amount of money might put your finances in jeopardy. This is essentially where a Third-Party Bike Insurance Policy comes into play. It will cover all costs associated with third-party losses.
Previously, the legislation specified that you (a bike owner) might purchase a yearly or short-term third-party coverage to cover these expenses. However, given the importance of this fundamental insurance and the need to increase the number of covered bikes, the regulator has made the necessary changes to the law.
According to recent insurance regulator rules, if you buy a new bike, you must also get a long-term Third-Party Bike Insurance Plan. It’s possible to combine it with a Comprehensive policy. It’s all up to you. With new motorcycles, however, a 5-year Third-Party Plan is required.
Why should you buy a long-term Third-Party bike insurance policy?
It is required that you get a long-term insurance plan for your new bike. What about earlier two-wheelers, though? The government does not require you to purchase long-term third-party coverage in this circumstance.
Why you might wonder, should you choose a multi-year plan if that’s the case? There are several more advantages to purchasing a long-term plan for your old bicycle.
You can protect yourself from rising insurance prices
When you pay a fixed premium for a number of years when you buy a long-term Third-party Policy. You will not have to pay a greater fee each year as a result of this. It’s worth noting that the price of a third-party policy is set by the regulator, the IRDAI (Insurance Regulatory and Development Authority of India), rather than the bike insurance provider. This plan’s premium cost is the same for all insurers. As a result, there are no special discounts or lower rates available from other insurers.
The rate for Third-Party Bike Insurance is reviewed by IRDAI on a regular basis. The Third-party premium rate may increase on a year-over-year basis as a result of this pricing change. If you choose a Third-party Policy in this situation, the premium for each of the five years will remain the same, and the higher rate will not apply.
After 5 years, renew the policy directly
According to statistics, the majority of bike owners do not renew their insurance policies on time. This puts businesses at risk of significant financial losses due to traffic penalties and third-party losses. When you get a long-term coverage, you save the inconvenience of having to renew your bike insurance policy on a regular basis. You may ride your bike without fear of any kind of fines or losing money.
Another reason why many postpone renewing their bike insurance is that they believe it is a time-consuming procedure. However, with the introduction of Insure Tech platforms(such as GIBL.IN), purchasing, renewing, and even filing a claim against bike insurance becomes a breeze.
Enjoy continued coverage for a longer length of time
The government requires new bike owners to purchase a 5-year third-party coverage that includes or excludes Own Damage (damage to the covered bike). This is to ensure that, in comparison to annual insurance, the bike owner can protect against at least Third-party losses over a longer period of time. Furthermore, because a lapsed policy might result in greater out-of-pocket payments, a multi-year policy can help you prevent this.
In a nutshell
A 5-year policy may appear to be a long-term commitment, but it comes with more benefits than an annual coverage. In third-party losses, don’t be tense for fines because you are satisfying the requirements by enrolling in this plan.
Long-term coverage (both Third-party and Own Damage) can also protect you from rising costs. For the next five years, this one-time purchase will cover all of your bike insurance needs. Additionally, if you choose a long-term Comprehensive plan and don’t claim, you will receive premium savings while renewing the plan. Also, if you want to know more about other insurance coverage like car insurance coverage, then click the highlighted text.