Benefits of Multi-Year Two-Wheeler Insurance Cover?
Multi-year two-wheeler insurance is quite beneficial for the policyholder. Read to learn how.
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A multi-year two-wheeler insurance policy, also known as long-term bike insurance, is designed to make policyholder’s life simpler by not requiring them to renew their policies every year. Many people forget to renew their two-wheeler insurance plan on time due to several reasons, in such a situation, a multi-year insurance cover is providing them with features and benefits worth considering.
The IRDAI, the insurance regulatory body in India, has made it mandatory for all insurance companies to offer multi-year bike insurance plans. To make a long-term commitment with an insurance policy, you should be aware of its benefits which we will discuss in this article.
Benefits of Multi-Year Two-Wheeler Insurance Cover
There are different types of benefits of long-term two-wheeler insurance cover which are as follow:
1. Peace of Mind
With long term insurance policy with a validity of 5 years, you need not remember the date of renewal every year. This also lessens the risk of policy lapse and being caught driving a two-wheeler without an active insurance policy or spending money from your own pocket to pay for the repair and replacement of a bike in an accident. In simple terms, the one-time premium payment can bring you peace of mind in different aspects comprising policy renewal, legal compliance and financial protection for a long time.
2. Saving of Money
A multiple-year insurance plan can help you save money in different scenarios. When you pay the premium for a long term insurance policy, it stays valid for 5 years that reduces the chances of its expiration due to no renewal in due time. It could have increased the premium or raised the need for a new policy, but you do not have to face all these with a long term policy. Also, you become insulated from any type of premium price fluctuations such as IRDAI revises the third party base premium, etc. Now, it can’t impact you till the validity of your policy.
3. No Claim Bonus (NCB)
No Claim Bonus (NCB) is a reward provided by the insurance companies to their customers for not raising any claim request during a policy term. This benefit is like a discount which you can avail of on the premium of the next year for being a responsible and safe rider. When it comes to a short-term policy or an annual policy, the NCB can become nill on making a single claim during the policy term, while in a multi-year insurance policy, the NCB benefit does not get terminated but get reduced to the last slab of percentage but the benefit remains intact.
4. Refund on Cancellation
Purchasing a long term bike insurance cover does not end the flexibility of policy which means you need not feel to be bound by the multi-year nature of your policy. This goes to show that you will still be free to cancel your insurance plan anytime you require or want. On the cancellation of a policy, you will be entitled to get a refund for the unutilised term of your bike insurance policy. However, you should keep in mind that this benefit of cancellation refund is available only with a multi-year bike insurance cover.
Conclusion
The multi-year two-wheeler insurance plans come with a range of benefits. However, they may cost a little higher, but with a diverse range of advantages, they manage to hold their importance. You can purchase multi-year plans through the website of an insurance company or online insurance brokers. Also, you can upgrade your annual insurance cover to a multi-year insurance policy at the time of renewal.
Also Read:
How to Find the VIN, Chassis Number and Engine Number of Two Wheeler
Purchasing A Used Bike From A Different State? Keep These Things in Mind!
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
