A recent General Insurance Council (GIC) report has thrown light on the fact that 60% of vehicles in India are uninsured. Most of these uninsured vehicles were identified as two-wheelers. In order to encourage people to purchase/renew their two-wheeler insurance, Insurance Regulatory and Development Authority of India (IRDAI) introduced the multi-year two-wheeler insurance policy. Now, you have the option of insuring your two-wheeler for three years in one go. A multi-year policy has several benefits over purchasing a single-year policy.
Read ahead to know 6 reasons why you should consider a multi-year bike insurance policy.
- 1. Convenience
- 2. Avoid Non-renewal Implications
- 3. No Claim Bonus
- 4. Break-in Policy
- 5. Discount
- 6. Standard Rates
- Online Bike Insurance
Purchasing a multi-year two-wheeler insurance policy is a convenient way of insuring your bike. It is better than going through the process of renewing your bike insurance policy every year. Although it has become extremely easy to buy or renew bike insurance online, why would you want to go for it three times when you can do it once for three years?
2. Avoid Non-renewal Implications
Riding your two-wheeler without a valid insurance of bike is a punishable offence as per The Motor Vehicles Act, 1988. Note that an expired policy is as good as having no policy. You can be fined or imprisoned as well for riding a bike without valid insurance. Moreover, if an uninsured bike is involved in an accident, it can result in huge financial losses for you.
3. No Claim Bonus
Bike owners who have opted for Comprehensive insurance of their bike, receive a No Claim Bonus for every claim-free year. There is a 90-day grace period provided after the expiration of your insurance policy period to renew your bike insurance and still retain the NCB. Your accumulated NCB will lapse in case you fail to renew your two-wheeler insurance policy within the grace period. With a multi-year policy, you won’t be required to keep a track of this every year. Also, the calculation of NCB might be slightly different for a multi-year policy as compared to a single-year policy.
4. Break-in Policy
Insurance companies might want to inspect your bike before renewing its insurance if there has been a considerable gap between policies. Such policies are called as Break-in policies. They might increase your bike insurance premium. With a multi-year policy, you ensure that there will not a be a break in your policy, at least for a three-year period.
Some insurance companies might provide a discount on their comprehensive policy in case you opt for a multi-year plan. A long-term policy means that they gain the customer for a period of three years. Thus, they spend less on customer acquisition and other expenses, and extend that advantage to their customers in the form of a discount.
6. Standard Rates
The cost of a Third-party Liability policy is determined by IRDAI. This cost often increases annually. Insurance companies might also increase their premium rates over a period of one year. However, with a multi-year policy, you will not be affected by the rise in premium prices as the premium you pay will be applicable for a three-year period.
Online Bike Insurance
You do not need to visit your insurance provider’s office to purchase a multi-year two-wheeler insurance policy. It can be purchased easily by visiting your preferred insurance provider’s website. The purchase process is easy to understand and execute. In fact, it is similar to the process you follow while transacting on any of the popular E-commerce websites. Make sure to read the inclusions and exclusions of your long term bike insurance policy before making the payment. Clear your doubts by getting in touch with the insurance company via call or email before purchasing the policy.