How Multi-Year Insurance Plan is Beneficial for Your Bike?


3 min read

When you set out to compare bike insurance plans, there is a very high chance that you would have come across multi-year insurance plans. It begs two simple questions, what is a multi-year bike insurance plan, and should you opt for one?

Visual stories by PayBima

Multi Year Bike Insurance Policies

The IRDAI made way for multi-year insurance plans for bikes only a few years back. In simple words, you can now for a bike insurance plan that spans over two or three years. This contrasts with the previously available policies which were available only for a year. 

If you haven’t already heard about the multi-year plans, the probability is high that you will come across them when you compare bike insurance plans. Here are some of the benefits that you can avail of, should you opt for a multi-year bike insurance plan.

1. Hassle of Regular Renewal

Having to go through the renewal process every single year, is one of the reasons some bike owners do not renew their policies regularly. The multi-year bike insurance plan comes to the rescue of such bike owners. You can buy the policy once and forget about renewing the same for a couple of years at least.

2. Affordable Premiums

The IRDAI regulates the policy premiums for third-party policies every year. And this almost always results in a 20% increase. One smart way to avoid this regular price hike is to opt for a multi-year policy. When you opt for a multi-year policy, you pay the policy premium for the entire duration upfront. Thereby giving you immunity against any price hikes.

Also Read: Does Two-wheeler Insurance Get Cheaper as Your Bike Gets Older?

3. No Policy Lapse

It is a punishable offence to ride your bike without valid insurance, either third party only or a comprehensive policy. You not only attract hefty fines but also imprisonment in certain cases. Should you opt for a multi-year bike insurance policy, you do not have to worry about a lapsed policy. A single long-term plan will ensure coverage for a longer period without any policy lapse.

4. Keeping NCB Intact

Anyone who has a comprehensive bike insurance policy can stand to benefit from the No Claim Bonus. Your insurance company will award you NCB discounts if you do not make any claims during a policy year. And the discount ranges between 20% for the first year to 50% for the fifth consecutive year. 

However, you can stand to lose the benefit if you do not renew your policy in a timely manner. Having a multi-year plan can ensure that you retain the benefits of an NCB. In fact, a few insurance companies have a slightly different structure for multi-year policies. This would ensure even bigger savings for you.

5. Penalties, Fines, and Financial Perils

Riding your bike without insurance can bring a lot of potential financial perils. Firstly, you will end up paying a hefty fine if caught by a traffic police personnel. More importantly, in the event of an accident, you will end up paying for the damages from your pockets. To avoid all these, you can opt for a multi-year policy. 

When you decide to buy a multi-year policy, you must compare bike insurance plans. Comparison will enable you to not only save a considerable amount in premiums but also get a policy with adequate coverage. To buy two wheeler insurance online, you can visit an insurance company or broker of your choice.

Also Read: How to Calculate NCB for Bike Insurance in India | Importance of first party bike insurance | How much is bike insurance? Cost of bike insurance | Electric/e-Bike Insurance in India: Meaning, Benefits, Things Covered, Not Covered, Renewal Process | Is It Mandatory to Buy Two-wheeler Insurance from Bike Dealers?

Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.

Nov 23, 2021
Author Bio
Author Image

PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

Related Blogs

Would love to hear from you

Share your candid feedback. Your email address won’t be published, we promise!

All fields are required

Find your suitable insurance plan

Speak to our advisor

Latest Posts

Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800

Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).

Insurance is the subject matter of solicitation.

For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.

Copyright © 2024 Mahindra Insurance Brokers. All Right Reserved.

Get A Call Back
Get A Call Back