Dear Hanif,
Buying a longterm 2 WH insurance would not only be beneficial in terms of cost saving, but also having a continuity in insurance coverage. Assuming that the vehicle is insured for a 2 year term, the saving would be in terms of premium escalation which can be attributed to claim during policy, increase in the TP premium (which currently is at 15% each year) and also increase in service tax. In case of no claim scenario, the insured would have a 9% saving in premium (considering only the TP increase), and in case he has a claim, considering that the insured would have had Zero NCB on renewal which would increase the premium, here in the 2 year long term policy, he would have the same premium during the term and would benefit with 17% saving.
