Is long term two wheeler insurance plan beneficial?
Is long term two wheeler insurance plan beneficial?
Published on June 26, 2019. EST READ TIME:5 MIN
The importance of having a valid two wheeler insurance policy cannot be stressed enough. India, being one of the largest markets for two-wheelers in the entire world is equally unsafe too. Regardless of the mandate of having a third party insurance policy by the government of India, as high as 50 percent of motor vehicles in India are still insured, the majority of them being two wheelers.
One of the major reasons for this is the hassle associated with renewing the insurance policy once it is expired. Remembering renewal date year after year is difficult and even if your two wheeler insurance renewal is late by a day, the process becomes long and cumbersome. The tedious task of taking the bike to the garage for inspection, the unnecessary paperwork and of course the premium is feared by one and all.
Thankfully, insurance companies like HDFC ERGO have now come up with long term two wheeler insurance plans that insure your vehicle for three years.
In addition to providing two wheeler insurance for 3 years in one go, it saves you from the unnecessary hassle of annual renewal Here is why having long-term insurance plan is beneficial:
Advantages of Long Term Two Wheeler Insurance
Convenience
In addition to saving you from the massive task of renewing your policy annually, long term two wheeler insurance policies bring along many other conveniences for the vehicle owner. If you opt for an annual renewal policy, it means you will need to renew the policy annually However if, you buys a long term policy then you save yourself from the hassle of annual renewal.
Minimal Financial Risk – What do we mean by this?
Regardless of how regular you are with your premiums, there might be a time when your policy is relapsed before you could renew it. And if there are some happenings during that time, your vehicle will not be covered under any insurance policy. This not only involves a massive financial risk but also legal implications considering that third party insurance is mandatory in India under Motor Vehicle’s Act.
Monetary Gains
Long term insurance policy also provides you with monetary benefits. First of all the third party premium rates are frozen and are free from the average annual hike of 10-15 percent.
Simple Cancellation Process for Policy
If you are not happy with your current long term insurance policy, you can opt to cancel it at any time of the policy period. Based on the terms and conditions of the insurance policy, you can get a refund for the unutilized time period. However, it is important to purchase a new insurance policy and activate it before you opt for cancelling the old one.
The existing policy can be cancelled only if you have a valid third party two wheeler insurance policy for similar policy duration and this is required by the insurance company to process your request
You can ask your current insurer to provide an NCB certificate, which can also be used to claim NCB with your new insurance company.
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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