3 min read
Updated on Nov 21, 2022
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?
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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.
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.
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.
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.
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.
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.
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