Is it possible to get long term auto insurance for my bike?
Yes IRDAI has introduced long term auto insurance which gives you freedom to relax for a least the next 2 to 3 years on policy renewal. What’s more you can also save on hike in annual premium charges each year for your policy renewal. For example the long term auto insurance policy of New India Assurance offers an assured discount of 30 per cent for three-year policy and 20 per cent for two-year policy.
It is possible to get a long-term Two-Wheeler Insurance policy. Here are the features.
• The premium payable for a 3-year policy is thrice the usual annual amount. This amount does not change during the course of the policy. This means that the premiums can neither be hiked nor cut down, and also that the sum assured remains constant for all 3 years.
• The premium for a long-term policy generally comes with a discount of 20% to 30% of the usual annual premium on the own damage portion, as the tenure of the policy affords the insurance provider benefits that can be passed on to the customer.
• A 3-year Two-Wheeler Insurance policy also means that you do not have to get your vehicle inspected during the period for any change in the Insured Declared Value (IDV). A vehicle inspection is usually undertaken only if you fail to renew your policy on time and go for a renewal or new policy after a gap of even 1 day from your policy expiration.
• Under the long-term policy, you can get either a third-party liability insurance or a comprehensive insurance policy that covers your own damage as well. Either way, you will save on premium.
• As per IRDAI terms, the long-term policy, once issued, cannot be cancelled by the insurance provider for the duration of the policy. The only exception to this is if your vehicle suffers from total destruction.
• No Claims Bonus (NCB) is also accrued in a long-term policy, but in a better way when compared to a regular annual policy. You could get up to 40% NCB at the end of 3 years compared to 35% in a 1-year policy. Many insurers also offer riders that keep the NCB intact if you make only 1 claim in the 3-year period.
Looking for a Two-Wheeler Insurance policy? Click here.