Long term two wheeler insurance policy was introduced in India very recently. ICICI Lombard, HDFC Ergo, Bharti AXA, Oriental Insurance, etc. are offering some great deals on two wheeler long term insurance. According to the government record, at least 60-75% of the motor vehicles in India do not have insurance at all. Under the law, having an insurance for any vehicle you own is mandatory. IRDA introduced long-term insurance so that every person can afford to own an insurance.
For the lifestyle we lead today, time saving and getting the work done with minimal effort is important and if it is available at our fingertips then it is even more convenient. Riding a two wheeler on Indian roads is an economical option because it is convenient. To protect your vehicle from normal wear and tear and other mishaps, it is important to insure your vehicle. Now, the question is which type of insurance to buy. There is one standard insurance where you have to renew it annually. The second type is the long term insurance where you have to renew your policy once in three years with a lot more benefits than standard insurance.
Buying an insurance is very easy these days because most of the tech-savvy companies offer all these facilities online.
Premium Payable Under Three Year Cover for Two Wheelers
As the name suggests, it is a long term three year insurance cover for your vehicle. The premium is thrice the amount of annual third party premium and this amount has to be paid in one go. Once purchased, the premium amount cannot be altered during the term under any circumstance.
Benefits of Buying a Three Year Cover for Your Two wheeler:
- In three-year long term cover, you will have the third party liability insurance cover. Whether it is loss or damage the insurance company will bear the expenses saving you from paying for all damages from your own pocket.
- The loss caused to your own vehicle either by you or nature is also covered in this insurance.
- During the first year of your three year cover, the third party liability cover will be frozen. The premium should be paid in single instalment and it is thrice the standard policy annual premium amount. In case of annual premium policy, the insurer can revise the rate of premium at any point in time due to the inflation.
- Due to the rise in inflation, the companies will hike a 10-15% on premiums annually. But if you choose the long term plan, you will save yourself from this risk. Apart from the premium all other terms and conditions remain the same.
- The policyholder can save up to 20% while paying the premiums on subsequent years while renewing the policy.
- It is extremely beneficial while claiming for no claim bonus. If you have not claimed the insurance during the policy period, then you will be eligible for this benefit. The policyholder will be eligible for discounts while renewing the policy.
- Purchasing the insurance online is fast and convenient and you can get some great deals on long term insurance plans.
- It saves you time and money for the insurance provider sparing them from maintaining different records of your policy and renewal.
- You do not have to remember the renewal time unlike the short term plans. The insurance provider will set an automatic renewal date reminder.
- It saves you from paying administrative costs and policy issuing costs. This will in-turn benefit you in the form of discounts while paying the premiums on subsequent years.
- Insurance companies offer discounts on own damage caused by you as a part of the policy which is otherwise not available in the regular policy.
- The most important thing is, you can save yourself from renewing the lapsed policy every year and you can enjoy all the benefits for a longer period.
Buying a three year cover for two wheeler insurance is a yay from us. So if you too want to save yourself from renewing your policy every year, then this is your go to option for all the benefits listed above. Ask your insurance provider for more details on long-term policy as few advantages and factors may differ from each company. Many companies are offering great discounts on purchase of three year third party two wheeler insurance policy along with other benefits.
Most of the insurance companies in India, have welcomed this move from IRDA and are providing the customers with great deal of facilities both online and offline.