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/]
