Is Two-Wheeler Multi-Year Insurance Beneficial?
Updated On Apr 26, 2022
It is required by the Motor Vehicle Act to have at least third-party bike insurance.
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It is required by the Motor Vehicle Act to have at least third-party bike insurance. Ensuring your bike will protect you not only from the financial risks that come with having a bike but also from the hazards that come with owning a bike. Depending on the policy you pick, your bike insurance can cover you not only from the expenses of bike repairs, but also against third-party losses such as bodily injury, disability, death, or property damage caused by an accident involving your two-wheeler. A policy with a period of more than one year is known as a multi-year insurance policy. Different firms provide different alternatives for the number of insurance years.
Benefits Of Buying A Multi-Year Bike Insurance Policy
It's vital to renew your bike insurance on a regular basis once you've purchased it. Every year, standard insurance coverage should be renewed. Failure to renew your insurance coverage may result in legal consequences, since having at least a third-party insurance policy for your motorcycle is required. A long-term bike insurance coverage will save you money while also providing you with a number of other advantages, such as:
Renewal Doesn't Have to Be a Pain
Because it covers you for a longer length of time, multi-year bike insurance eliminates the need to renew your policy every year. It takes time and effort to gather papers and renew them every year, and it may be tedious. In this case, long-term insurance has a clear benefit over short-term insurance coverage.
In Multi-Year Bike Insurance, There is a No-Claim Bonus
Short-term bike insurance policies offer a lower No Claim Bonus than multi-year coverage. The no-claim bonus is still granted to the policyholder under a multi-year insurance policy even if the policyholder claims insurance throughout the policy's length. The corporation will not pay a bonus if the number of claims submitted surpasses three. NCB is even offered on a sliding rate by some insurance firms. The amount of the discount is decided by the policyholder's number of claims.
Bike Insurance Premiums for Multiple Years
The IRDAI (Insurance Regulatory and Development Authority of India) boosts third-party insurance prices every year. You may save money on your bike insurance cost by purchasing long-term coverage because you will only have to pay one payment. As a consequence, when you renew your insurance each year, you won't have to pay the increased premium cost.
Cancellation of a Multi-Year Bike Insurance Policy
Depending on the terms and circumstances of your bike insurance policy, you may be eligible for a full or partial refund if you cancel your long-term insurance coverage. In most cases, single-year insurance does not contain this benefit.
Prevent Policy Irregularities
It is prohibited to ride a two-wheeler without having valid third-party or comprehensive insurance coverage. It might lead to serious repercussions, including imprisonment. Furthermore, after the insurance has expired, you will have to acquire a new policy and repeat the full paperwork and inspection procedure. All of this may be prevented with the aid of multi-year insurance coverage. With only one purchase, it protects you from the grave consequences of insurance lapse for many years.
A five-year long-term third-party bike insurance coverage is not required for all new bike owners. If you expect to sell your bike within three years, long-term coverage is not appropriate. For bikes that are brand new or that you wish to keep for more than three years, multi-year bike insurance is a good idea. Make sure you thoroughly assess your demands and ride safely before negotiating the terms of your bike insurance.
Also Read: Renewal Benefits for Two-Wheeler Insurance