Long Term Two Wheeler Insurance Policy Benefits
Long Term Two Wheeler Insurance Policy Benefits
Published on July 26, 2019. EST READ TIME: 5 MIN
We all are aware that two wheelers are much more vulnerable to getting into road accidents as compared to any other vehicle. To make sure you and your two wheeler are always protected from accidents and other dangers, it is imperative that you buy a two wheeler insurance policy. Even as per law, you need to have a valid liability insurance policy to drive on Indian roads. However, under a liability insurance policy, any damage to your vehicle is not covered. It is recommended to buy a comprehensive or a package policy which provides protection to your vehicle and liability insurance is inbuilt in it.. Not to mention that your vehicle is always protected against unexpected occurrences like theft or third party liability. Hence, going for a comprehensive or a package two wheeler insurance policy is definitely worth it.
Long term two wheeler insurance
Besides having a regular annual insurance for your bike, various insurance providers like HDFC ERGO are offering long term bike insurance to scooter and bike owners. These insurances offer protection up to three years.
HDFC ERGO provides various exclusive plans for customers opting for long term two wheeler insurance. Besides saving on annual third party premium hikes, customers can enjoy benefit of no annual renewal. The company also provides various IDV (Insured Declared Value) options to choose from.
Benefits of long term two wheeler insurance policy
When compared to annual insurance for two wheelers, here is why you should opt for a 3 year bike insurance plan:
Discounts offered
A long term two wheeler insurance lets the policy holder avail various discounts. Since the insurer is able to save on various administrative costs through long term plans, these savings are offered to customers in the form of discounts and incentives.
Long-Term Two Wheeler Insurance Renewals
Having to renew your bike insurance policy every year is not very convenient, especially if you have more than one insurance policy. In case the policy gets lapsed, the policy holder needs to go through numerous hassles to have the policy renewed again. And consider getting into an accident after the renewal date, you will not be able to make a claim in such a situation. In such a situation, you may also need to get your vehicle re-inspected before your policy is renewed or a new policy is issued. Such situations do not happen if you have a long term two wheeler insurance.
Premium Rates for Long-Term Two Wheeler Insurance
There has been a tremendous rise in premium rates every year. There is nearly a 20% hike in third party liability cover premiums every year. So, in case of long term insurance, the premium would not change during the tenure of the policy. Hence, you would save a considerable amount on premiums.
No claim bonus
The biggest advantage that long term two wheeler insurance policy owners have over short term policy owners is when it comes to the No Claim Bonus (NCB). A no claim bonus is basically a discount provided to the policy holder on the premium of next year in case they have not made any claims in the current year.
The slab of no claim bonus is much more favourable in case of long term policies in terms of a higher percentage of discounts.
Cancellation/Termination of Long Term Two Wheeler Insurance policy
Some insurance companies also have provision to offer refunds to policy holders in some cases where the policy is terminated or cancelled. This is a benefit which is provided only to long term insurance policy holders.
No headache
Insuring your two wheeler for three years in one go will ensure that you do not have to worry about insurance renewals for a long time. Dates like your anniversary and your child’s birthday should be more important to remember, not your annual insurance renewals.
It is safe to say that investing in a long term two wheeler insurance policy is not just cost friendly but also better in terms of benefits and overall protection. So, if you have not just purchased one, you can now buy it online on HDFC Ergo’s website.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before going ahead with the sales.
This blog has been written by
S. Gopalakrishnan | Motor Insurance Expert | 40+ years of experience in insurance industry
A veteran in insurance industry. S. Gopalakrishnan is a name to reckon with in the field of reinsurance, he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.
S. Gopalakrishnan recommends "HDFC ERGO for your vehicle insurance needs, it has always put customer’s interest at the forefront, with round the clock assistance to deal with emergency breakdown issues and hassle free claims process. You can be assured of complete and reliable guidance through the whole process".
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