Tuesday, 1 December 2015

Is Long-term Insurance Cover Right for Your Two-wheeler?

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.

Benefits of buying long-term insurance
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. Once 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.


Roadside assistance is an essential aspect of your car maintenance and protection. In the unfortunate event of a breakdown or accidents, it is of great help.  If you feel your current bike insurance is able to take care of such emergency requirements, you can avoid buying a standalone policy. However, if your current car insurer does not give ample features in its add-on roadside assistance plan, go for a standalone policy.

[Source: http://www.policybazaar.com/motor-insurance/car-insurance/articles/know-all-about-roadside-assistance/]

5 comments:

  1. Hey Thanks Nishant for sharing this informative blog,it seems very helpful related to Bike Insurance

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  2. Hey Tom thanks for sharing your comment, for more details about bike insurance you can follow this blog.

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  3. Nice blog Nishant, it seems very helpful i was looking for same content about bike insurance

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  4. Nice blog Nishant, it seems very helpful i was looking for same content about bike insurance

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  5. Thanks for sharing the blog, seems to be interesting and informative too. Can you suggest some of the interesting places to visit for Third Party Insurance Bike

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