Many organisations have conducted studies to assess the percentage of insured vehicles on Indian roads. And to the government’s surprise, the studies showed that at least 70% of the vehicles plying on Indian roads were not insured and the majority of the vehicles were two-wheelers. Every day at least 1,500 vehicles are being rolled out from the showroom to buyers in every state. At the time of purchase, dealers offer to insure the vehicle with at least a mandatory third-party policy, if not a comprehensive one. It is the responsibility of the vehicle owner to ensure that the vehicle is insured and the policy is renewed on time. When it comes to renewals, many fail to do so.
Research has shown that many people don’t buy two-wheeler insurance for the following reasons:
In a nation where two-wheeler accidents are increasing day by day, it is necessary that every vehicle has to be insured with a proper two-wheeler insurance. To encourage two-wheeler owners to insure their vehicles, the Insurance Regulatory and Development Authority of India (IRDAI) has introduced long-term two-wheeler insurance policy.
A long-term two-wheeler insurance policy is valid for three years and you can get great discounts from the insurer as well. If you too are one of those few people who would not remember important dates, then it would be beneficial if you buy this policy. The IRDAI introduced this facility to increase the number of insured vehicles because if the number further falls down, then by the end of 2030, the IRDAI would suffer a huge loss which would be difficult to regain.
|Annual policy||Discount percentage|
|For one claim free year||20%|
|For 2 claim free year||25%|
|For 3 claim free year||35%|
|For 4 claim free year||45%|
|For 5 claim free year||50%|
But in a long- term two-wheeler insurance policy, the no-claim bonus will be applicable as following:
|Long-term policy||Upfront Discount percentage|
|At the start of the policy||15%|
|Two year policy||20%|
|Long-term or three year policy||30%|
|On continuation or renewal of long-term policy:|
|Deduction for one claim in first year||5%|
|Deduction for one claim in second year||10%|
|If in third year a claim is made or more as mentioned in the policy||Nil|
It is often seen that people buy two-wheeler insurance policy just to avoid the fines and penalties from the cops if caught accidentally. But the flipside to this is usually it’s only third-party policy and it will be of no help if your vehicle is damaged and costs huge to repair it or even if it’s stolen. So while it is acceptable that you want to save money on premiums, buying insufficient insurance cover is never a solution. Insuring your two-wheeler with proper insurance like a comprehensive plan is advisable. Buy a two-wheeler long-term insurance if you are looking for higher cover with great discounts and enjoy a tension-free ride.
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