We lead a hectic and busy lifestyle with perhaps little to no time for ourselves. Most of us tend to have a long to-do list. Given that it is easy for most of us to forget to renew our bike insurance policy. The rude awakening often comes with the traffic policemen giving us a rude awakening. Keeping this in mind and to reduce risky driving, the IRDAI had introduced multi-year two-wheeler insurance policies.
Moreover, the IRDAI has mandated that every new two-wheeler must buy a 5-year compulsory third-party insurance which makes the policy active for straight five years. If you are purchasing comprehensive bike insurance, it would again have the third-party component for five years while the own damage part can be for a single year or five years cumulative depending on your choice.
Benefits of multi-year bike insurance
It definitely raises the dilemma in your mind as to what policy you should opt for. From our part, we strongly recommend the multiyear bike insurance. To cement our recommendation further, we state below several benefits of the move.
The foremost and biggest advantage of multi-year bike insurance is the obvious convenience and zero headaches. You need not renew and research on Bike Insurance every year and thus eliminate the risk of your bike going uninsured. The peace of mind and convenience it offers you is unmatched.
- You need not face the implications of non-renewal
If your bike insurance policy lapses and you are riding on it, you are vulnerable to be punished by the law as the Motor Vehicles Act, 1988 has made it insurance a mandate. Moreover, in case of an accident, you will need to bear all financial and mental stress and singlehandedly.
Additionally, if there is a considerable gap in between the expired and new policy, called as Break-in policies; you will find a sudden spike in premium as your risk factor would have risen considerably. But a multi-year policy saves you from all such hassles and you remain protected and secure.
While renewing the bike insurance, we rarely pay the same premium amount. Every year it increases and we inevitably have to pay a higher premium. But if we purchase a five-year plan; the premium amount remains the same for all five years and we are able to skip the spike. Thus, you save on the premium amount by opting for a long-term insurance policy.
- Can translate to discounted own damage premium
Every time you renew your bike insurance, you have the option to switch to a different insurance provider. But with a five-year plan, you tend to stick to the same insurance provider. Understanding this huge advantage, insurance providers try to beat the competition by offering lucrative discounts to customers deciding to go for a five-years bike insurance policy. It proves a win-win situation for all.
- The NCB advantage remains intact
Most customers are confused about the NCB or No Claim Bonus in a multi-year insurance plan. But there is nothing to be confused about. Even with a multi-year policy, the no claim bonus remains intact for each claim-free policy period. Moreover, even if the policy lapses, most insurers give you a grace period of 90 days within which you can renew your policy without losing the NCB advantage and discount. This advantage is not available with a single year plan which again highlights the advantage of the multi-year plan.
- Flexibility of cancellation
You might want to cancel your bike insurance policy for several reasons like selling your bike, leaving the country for a job or any other reason, etc. In a single year policy, you do not get any refund of you had made a claim. But in a multi-year policy, you get a proportional refund on cancellation of a policy which is decided by the remaining period of the policy.
Disadvantages of long-term two-wheeler policy
Like most policies, multi-year bike insurance policies have a few disadvantages as well. For instance, like inflation, premium deflation can also happen. But one cannot reap its benefits in the long term fixed premium plan like the annual plan. Additionally, you might need to incur some loss if you decide to sell your bike as you will need to bear the investment cost but the buyers stand to gain the advantage here.
Moreover, you get this option only for new bikes and not at the time of renewing the policy.
Undoubtedly, a long-term bike insurance plan offers many advantages. Hence, if you have no intention of selling the bike, it is the course to take for maximum benefits.
I am Daisy Bell and a pro-level blogger with years of experience in writing for multiple industries. I have extensive knowledge of Food, Fitness, Healthcare, business, fashion, and many other popular niches. I have post graduated in arts and have keen interest in traveling.