Is Multi-Year Insurance Cover for Two Wheelers Beneficial?

According to the Motor Vehicle Act, having at least third-party bike insurance is obligatory. Insuring your bike will help you safeguard not just your bike, but also yourself from the financial risks that come with owning a bike. Your bike insurance can protect you not only from the costs of bike repairs, but also against third-party losses such as bodily injury, disability, death, or property damage resulting from an accident involving your two-wheeler depending on the policy you choose. 

What Is A Multi-Year Bike Insurance Policy? 

A multi-year insurance policy is one that has a policy term that is more than one year. For the amount of insurance years, different companies offer different options. A multi-year or long-term policy, on the other hand, often lasts 3-5 years. Purchasing a long-term bike insurance policy eliminates the need to renew it each year. Please keep in mind that all new bike owners are obliged to purchase a 5-year long-term third-party bike insurance coverage.

How Is Purchasing A Multi-Year Bike Insurance Policy Beneficial? 

When you buy bike insurance, it's critical to renew it on a regular basis. Standard insurance coverage should be renewed every year. Failure to renew your insurance policy may result in legal issues, as it is obligatory to have at least a third-party insurance policy for your bike. Having a long-term bike insurance policy will save you money and provide you with a variety of other benefits, including:

• Renewal Isn't a Hassle

Multi-year bike insurance avoids the need to renew the policy on an annual basis because it provides coverage for a longer period of time. Gathering documents and renewing every year takes time and effort, and it can be tedious. Long-term insurance offers an obvious advantage over short-term insurance coverage in this instance.

• No Claim Bonus In Multi-Year Bike Insurance

Multi-year bike insurance policies have a bigger No Claim Bonus component than short-term policies. Even if the policyholder claims insurance between the duration of the policy, the no claim bonus is still given to the policyholder under a multi-year insurance policy. However, if the number of claims filed exceeds 3, the corporation will not pay a bonus. Some insurance companies even offer NCB on an increasing scale. The amount of the discount is determined by the number of claims filed by the policyholder.

• Multi-Year Bike Insurance Premiums

Every year, the IRDAI (Insurance Regulatory and Development Authority of India) raises the price of third-party insurance premiums. Buying long-term insurance coverage can save you money on your bike insurance premium because you will only have to pay one instalment. As a result, you won't have to pay the increased premium cost every year when you renew your policy.

• Multi-Year Bike Insurance Policy Cancellation

If you cancel your long-term insurance policy, you may be eligible for a full or partial return, depending on your bike insurance policy's terms and conditions. This benefit is generally not included in single-year insurance.

• Avoid Policy Lapse 

Riding a two-wheeler without a valid third-party or comprehensive insurance policy is illegal. It could result in severe consequences, including jail. Furthermore, after the policy expires, you will need to purchase a new policy and go through the entire paperwork and inspection process all over again. With the help of multi-year insurance coverage, all of this may be simply avoided. It protects you against the severe repercussions of insurance lapse for numerous years with just a single purchase.

Take Away

It is not mandatory for all new bike owners to obtain a five-year long-term third-party bike insurance plan. Long-term coverage is not appropriate for your bike if you plan to sell it within three years. Multi-year bike insurance is beneficial for bikes that are brand new or that you want to maintain for more than three years. Before settling the conditions of your bike insurance, make sure you carefully examine your needs and ride safely.

Also Read: 

How To Choose The Right Pair Of Motorcycle Riding Boots

What Things Should You Keep in Two-Wheeler Safety Kit

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.