Bike Insurance For 3 Years
- Author :
- TATA AIG Team
- Published on :
Your bike is not just a means to get from A to B without having to depend on any means of public transport. It is your companion through errands and daily commutes to work alike and your go-to option for emergencies. It is, therefore, important to have insurance for your two wheeler to secure yourself financially.
It is mandatory for every vehicle owner to have valid third party two wheeler insurance to drive their two-wheeler on the roads in India. So, you can buy online two wheeler insurance and save a substantial amount of time and effort in the process.
At Tata AIG, we offer different types of two wheeler insurance plans for you to choose from. It is extremely convenient to get an instant quote for our insurance for two wheeler plans. All you have to do is enter some basic details in our bike insurance calculator.
It is not enough to just buy two wheeler insurance once. You must also carry out a timely renewal of your bike insurance policy. Failure to do so can leave you susceptible to traffic fines. It can also leave you financially unprotected in the wake of any potential adverse events associated with your bike, including accidents and theft.
3 Year Insurance Policy For Two Wheelers
One easy way to do away with the need to renew your bike insurance policy every year is to buy a 3-year insurance policy for 2 wheeler. The Insurance Regulatory Development Authority of India (IRDAI) has allowed insurance companies in the country to issue bike insurance for 3 years. This policy works much the same way as an annual two wheeler insurance plan. However, it has some distinct features, which have been discussed below.
Salient Features Of Bike Insurance For 3 Years
1. This policy is a third-party cover: A 3-year insurance policy for 2 wheelers comprises a third party cover only. Buying a three-year third-party insurance plan is an excellent way to ensure that you have continuous financial protection against the third party liabilities that may arise out of any unfortunate events associated with your bike. However, you can also opt for a multi-year comprehensive bike insurance plan.
2. This policy's premium is thrice that of an annual bike insurance policy: According to the mandate of the Insurance Regulatory Development Authority of India, the premium of a two wheeler third party insurance for 3 years is supposed to be thrice the premium of an annual two wheeler insurance policy. There is a specific formula to arrive at the amount of this premium, which takes several important factors into account.
3. This policy is non-cancellable except in the event of a total loss of the vehicle: Once issued, a three-year third-party insurance plan cannot be cancelled by the selected insurer unless there is a total loss event pertaining to your bike, for instance, theft or irreparable damage. The standalone third party insurance plan shall, therefore, continue for a minimum period of three years.
4. This policy requires a one-time premium payment: Unlike an annual two wheeler insurance policy, bike insurance for 3 years plan spares you the need to pay the premium amount every year. You can make this payment once, during the purchase of the policy, and enjoy the coverage for the policy tenure. You can also carry out bike insurance renewal for 3 years.
Benefits Of Buying Bike Insurance For 3 Years
There are several advantages of a 3-year bike insurance policy for both the insurance providers and the policyholders. For the insurers, it entails a substantial saving in terms of the administrative charges associated with annual premium payments and policy renewals. For the policyholders, there are numerous incentives for opting for a 3-year insurance policy for 2 wheeler.
The IRDAI has made it mandatory for you to buy a five-year third party insurance policy for a newly purchased bike. However, even if you do not have a new bike, you can enjoy the following benefits by choosing bike insurance for 3 years.
1. No need to renew the policy every year: One of the most important benefits of buying a 3-year insurance policy for 2 wheelers is that you do not have to renew your two wheeler insurance policy every year. On the surface, this may seem like a small benefit, but in reality, this entails significant savings in terms of time, money, and effort. Therefore, opting for a three-year bike insurance policy is an extremely prudent decision.
2. No change in premium for the policy term: The rates of third party insurance keep changing every year as per the directives of the Insurance Regulatory Development Authority of India. Therefore, you may be required to pay a higher bike insurance premium upon the annual renewal of your two wheeler insurance policy.
However, if you buy bike insurance for 3 years, you do not have to worry about the aforementioned fluctuations in the premium rates. Since such a policy has a one-time premium payment clause, you do not have to pay any additional premium until the renewal of the policy falls due.
3. No need to pay fines for a lapsed two wheeler insurance policy: Since it is mandatory for all bike owners in India to have at least a valid third-party two wheeler insurance policy, having a lapsed policy is grounds for fines and penalties. This can lead to a significant financial burden for you. Opting for a three-year third-party insurance policy for your bike means that you do not have to worry about being fined for not having an active bike insurance policy, at least for three years.
To Sum It Up
A 3-year insurance policy for 2 wheelers is an excellent plan that allows you to park your bike insurance renewal worries for a period of three years. During this time, you need not worry about the potential annual increase in the two wheeler insurance premium rates. Furthermore, you can also be immune to being fined for a lapsed policy.
Owing to its plethora of benefits, you must opt for bike insurance for 3 years and enjoy uninterrupted insurance coverage for your bike. You can purchase the Tata AIG Long Term Two Wheeler Insurance Plan and have financial security for your bike.