Skip to main content

Insure two-wheeler with Long Term Policy

    Invest in Best SIPs Online 

Insuring your two-wheeler - Why you should go for a long term policy

The Motor Vehicles Act of India has made it compulsory for every two-wheeler owner to get a valid insurance cover. So, make sure you get the right cover for your two-wheeler before you start riding on the roads.


Whether you live in a city or in the countryside, a two-wheeler is something that you invest in at some point in life. It is an economic vehicle which you can ride easily through narrow roads, but there are a few things like mandatory insurance that you must keep in mind to ensure a stress-free ride. The Motor Vehicles Act of India has made it compulsory for every two-wheeler owner to get a valid insurance cover. So, make sure you get the right cover for your two-wheeler before you start riding on the roads.

However, the statistics say a different story. According to the latest figures, out of all the motorbikes on the roads, only 30% are covered by motor insurance. A prime reason behind this is that the insurance sold to the buyers for a new vehicle is usually valid for one year and if not renewed by the owner automatically lapses. In the wake of this scenario, Insurance Regulatory and Development Authority of India (Irdai) allowed insurers to launch a long-term two-wheeler insurance policy which lasts for two to three years depending on the plan you choose.

Now, this leads to another important question—when it comes to two-wheelers, should one buy a long-term policy or just a one-year policy? If you are going through a similar dilemma, here are some scenarios to help you clear the clutter.

Scenario 1: A newly purchased two–wheeler

If you have purchased a bike recently, then it is quite possible that the dealer has sold you a one-year policy for your vehicle. The chances are high on such policy sales because not many channels/dealers have moved towards long-term policies. Probably a part of it is because the person purchasing the bike looks at the on-road price and the dealer has to keep it low at all times.

Buying long-term vehicle insurance has many benefits. It will not only save up to 27% on your own-damage premium but will also free you from the hassle of renewing your policy every year. For example, for a Bajaj Pulsar 150 (electric start) registered in 2016, the premium for one-year comprehensive policy is Rs 1,489 and premium for the three-year long-term comprehensive policy is Rs 4,017. Hence, you should make a mature decision by exploring more options available in the market before you buy insurance.

Scenario 2: An old two-wheeler

There is no denying that many of us often keep a motorcycle for a long period, sometimes for more than 15 years also. Renewing your insurance policy is very economical as the IDV gets very low and so does the premium, and going for a one-year insurance policy is the only choice you will be left with. The reason behind this is that most of the insurers do not sell long-term insurance policy once the bike is more than 10 years old.

Insurers like New India Assurance only provide long-term insurance cover with zero-depreciation add-on for the first three years and without zero-depreciation add-on for six years. Hence, if you have an old bike opting for a standard one-year policy is the only option you are left with.

Scenario 3: Planning to sell bike

Plans to sell an old bike would usually mean that you need insurance only for a couple of months because once you sell it, the insurance will either be ported to the new owner or the new owner will have to buy a new insurance policy as per his/her needs. In such a situation, buying a single year policy is best and it also saves the money you would spend on buying a long-term policy.

Insurance is something that can be of great help when purchased thoughtfully. Hence, it is very important for you to analyse your needs before buying it. After all, it should fit your needs, not just for the short term but for a longer period too



Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...

What is Financial Freedom?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     There were many things common between our Freedom fighters. All had the Single vision (Free India), common goal (independence) and had a disciplined and focused approach. They were ready to do anything and everything and had made so many sacrifices to see India free . But the road to freedom was not easy .They had faced lot many hardships, went to jail so many times and even confronted physical and mental torture from the British. There was one more thing which proved to be an advantage to our fighters that most of them were professional lawyers. The knowledge of legal issues and its impact on our country at large has helped them counter various bills and proposed new laws by the then government. It is due to their continuous effort that we are able to achieve the goal of Independent Indi...

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now