Why Should Two-Wheeler Owners Consider a Multi-Year Insurance Plan?

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Updated on Nov 14, 2022

As the saying goes, with power comes responsibility. Owning a two-wheeler ensures you with the position of being the owner of a personal vehicle, but you need to maintain certain protocols for enjoying hassle-free ownership. Maintaining a valid two-wheeler policy is one such essential step. It is compulsory as per the current Motor Vehicles mandate. A multi-year bike insurance plan has become quite popular these days. This means a policy plan that insures a particular bike for three consecutive years. 

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What is a multi-year bike insurance plan?

From September 1st, 2018, according to the Motor Vehicles Act, a new bike needs to mandatorily have a 5-year third-party insurance plan. So, if you purchase a new bike, you have the option of selecting:

  1. Long-term third-party only insurance plan of only third-party liability coverage for 5 years.
  2. Bundled Insurance Plan of 1+ 5 years, i.e. own damage coverage of 1 year along with third-party liability coverage of 5 years.
  3. 5-year comprehensive insurance plan which provides both own damage and third-party liability coverage for 5 years.

Features of bike multi-year insurance plan:

  1. Third-party liability coverage: This type of insurance plan ensures third-party liability coverage during any accident caused by your vehicle.
  2. Own damage cover: Some companies even offer their own damage cover along with third-party liability. This ensures the protection of your vehicle against theft, loss/damages caused because of natural and man-made disasters.
  3. Personal accident cover and co-passenger protection cover: During accidental occurrences of your own vehicle, leading to complete disability or death, this plan offers compensation up to a certain extent. Moreover, co-passenger protection coverage is also ensured at a slightly higher premium.
  4. Cashless claims: Multi-year bike plan ensures easy cashless claim settlement at the listed garages. This saves you the delays and troubles of reimbursement.
  5. Rapid issuance: With just a few clicks on your mobile/laptop, you can easily purchase a multi-year bike plan online. 
  6. Easy porting: Once you complete the tenure of the plan, you can easily port your plan from one company to another in case of any dissatisfaction or better offer.

Benefits of bike multi-year insurance plan:

  • Low premium

    This sort of bike plan earns you a profit of at least 20-40% when compared to a single-year policy. It saves you from the yearly hike of the third-party policy and service tax, as managed by the IRDA.
  • Avoids the risk of policy lapse

    Once you buy a multi-year plan, you are saved for three consecutive years. It saves you from the obligations of yearly renewal and the risk of policy lapse. Moreover, the insurer may choose to inspect your vehicle before renewing your plan. A multi-year plan has no scope for all such hassles.
  • No Claim Bonus

    No claim Bonus refers to the incentive that you receive for a claim-free year. This is a reward from the insurer for being a responsible citizen and driver. In the case of a multi-year plan, you can get an NCB of 20% during renewal. 
  • Reduction of losses and penalties

    A multi-year bike policy ensures a significant reduction in losses and penalties. It keeps your vehicle safe from legal obligations and hefty penalties. 
  • Easy cancellation

    If you are dissatisfied with the performance of your insurer, or you can enjoy better benefits with another company, you can easily port your plan from the current company to another with no hassle. A refund of the premium would also be given in case of cancellation or porting.

Because of all these factors, the two-wheeler owners prefer a multi-year plan over a single-year policy. So, next time when you are about to renew your bike plan, you can safely go for a multi-year plan to enjoy these benefits. 

Also read: Best Two-Wheeler Insurance Plans in India to Buy in 2022

Sep 03, 2021
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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.

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