Benefits of Multi Year Two Wheeler Insurance Policy For Long Term

Why Buying a Multi-Year Bike Insurance Policy Is a Wise Choice?

While purchasing a bike is an investment worth making, it is equally important to purchase a bike insurance policy that saves your hard earned money from getting wasted on its repairs. Therefore, when you take home a bike, you must get an insurance policy too that protects it against fire, theft, any impact damage, natural calamities, etc along with third party liabilities.

Like any other insurance plan, a bike insurance plan also comes with a fixed validity period after which it needs to be renewed. Getting a bike insurance plan renewed annually can be taxing sometimes and to get rid of this responsibility for a longer period of time, you can buy a multi-year bike insurance policy. A long-term bike insurance plan takes away this little burden of renewal off your mind for at least 3 to 5 years.

Also, it is important to note that as per the Insurance Regulatory and Development Authority of India (IRDAI) guidelines, a 5-year multi-year insurance is mandatory for new two-wheelers.

Benefits of Multi-Year Bike Insurance Plans

  1. Lesser Premium: You will be charged a lesser premium relatively if you purchase a bike insurance policy for 3 years or 5 years instead of an annual policy. Also, purchasing it for multiple years keeps you immune to the rise in third party premium rates which may increase upto 10-12% annually. But if you purchase the policy for a longer period, then you can lock the lower premium rates for the subsequent years as well.
  2. Avoid Non-Renewal Related Risks: By purchasing a multi-year policy, you can avoid certain non-renewal related risks until you get your bike insurance policy renewed. For instance, if your bike gets stolen or meets an accident when the policy is not in force, then you will have to bear all the financial loss by yourself. But you can avoid this by purchasing the policy for a longer term say 5 years.
  3. Convenience: Multiple-year bike insurance policy saves you from the hassle of renewing your policy after frequent intervals which might be a cumbersome task to keep a track of expiry date specially when you owe more than one policy. However, keeping a track of policy dates will be easier if you opt for a long-term bike insurance policy.
  4. Avoid Penalties And Fines: Riding without a relevant bike insurance policy is a punishable offence in India. And an expired policy may land you in trouble of paying hefty fines if caught by the cops. Also, you may fail to make claims in case of a mishap. So, to ride hassle free for a longer period of time, purchasing a multi-year policy is a wise choice.

Also Read

How To Claim Third Party Insurance for Your Bike

Difference Between Comprehensive and Zero Depreciation Bike Insurance Policy

Conclusion

Riding a bike can be fun. Also, one cannot doubt the convenience that it offers a traveller in commuting easily. But at the same time, riding a bike makes you vulnerable to road accidents, and may result in third party damages or other unexpected damages. Therefore, you must not compromise on its protection, but purchase a multi-year insurance policy and enjoy a hassle-free ride for a longer period of time.

"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."

Add-ons For Your Bike Insurance Policy

  • Zero Depreciation

    Like other assets, the value of your bike also depreciates constantly with time and the liability of this expense by default rests with the policyholder. A zero depreciation add-on protects you against the depreciation expenses incurred by your bike. Thus, if you opt for a zero depreciation cover, depreciation expense of your bike is not deducted from your claim amount at the time of a claim settlement. This add-on is available with comprehensive bike insurance plans as well as standalone bike insurance plans. This is one of the most popular and recommended bike insurance add-on covers.

  • Invoice Protection

    In case of total loss (more than 70% damage) or theft of your bike, the insurance company pays you the Insured Declared Value of your bike as compensation. However, this Insured Declared Value (IDV) is less than the invoice price which you pay at the time of purchasing your bike. The Invoice Protection add-on cover helps you claim the Invoice Price, i.e. total ex-showroom price of your bike plus taxes plus registration charges, of your bike in case of total loss or theft of your bike.

  • NCB Cover

    No Claim Bonus is the reward which is given to the policyholder for not making any claim during the policy period. This reward is offered by the insurer in the form of a discount on the own-damage premium of the bike insurance policy at the time of policy renewal. The NCB ranges from 20% to 50% of the own-damage premium depending on the number of claim-free years. However, if you make even a single claim during the policy period this NCB gets lost. But, with the NCB Cover, you can keep your NCB intact even after making a claim during the policy period.

  • Engine Protection Cover

    The damages incurred by the engine of the bike are by default not covered under a bike insurance policy. However, if you opt for an Engine Protection Cover, the insurer will be liable to compensate you for damages incurred by the engine of your bike such as damage due to leakage of lubricants, water ingress, hydrostatic lock, damaged gearbox, broken crankshafts or pistons and cylinders. The repair cost of the internal engine parts is often high and can sum up to thousands of rupees or more. Thus, addition of this add-on to your comprehensive or standalone bike insurance policy can save you from these expenses.

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