Best Benefits of Multi-Year Two Wheeler Insurance 2022

Benefits of Multi-Year Two Wheeler Insurance

Choosing a multi-year two wheeler insurance policy is really beneficial: a long term policy for long run riders

You can save 20-40% upfront on premium: IRDA increases the third party liability portion of premium by up to 20% every year. Multi-year insurance protects you against third-party premiums as well as service tax hikes. So, compared to a one-year policy, you save a lot more with a multi-year two wheeler insurance policy.

Eliminates the hassle of annual renewal: Renewing your policy once for three consecutive years is stress-free as compared to renewing annually. Having a policy that has lapsed within a day can prove to be a disaster as it is dangerous to take your bike on the road in such a condition.
In case of an accident, you cannot even claim.

Your insurer may require a vehicle inspection prior to renewal. You may have a difficult time finding a new insurer. The chaos will not stop.

Having a long-term two-wheeler insurance policy will kill the risk of all such complications.

Security for long term: Enjoy long term financial security of your vehicle for up to three years. Ride safe and sound knowing you don’t have to worry about third-party liability or own damage costs for the three-year term. Also, you get a policy document that is valid for three years.

Policy cancellation is very easy: Some insurance companies have designed multi-year insurance products to facilitate policy cancellation/termination. In one year plan, if you claim in case of theft/loss, you are not eligible for premium refund.
However, in a multi-year plan, you can receive a certain percentage of the premium for all the unlimited years. The refund depends on the tenure of the policy availed. Although refund terms and conditions vary from one insurance company to another, they should be reviewed before purchasing a policy.

Offers attractive discounts: Sometimes, insurance companies offer upfront discounts on multi-year two-wheeler insurance policies.

Features of Multi-Year Two Wheeler Insurance

Third-Party Liability Cover: This insurance plan covers you against expenses arising out of damages and losses faced by a third-party in case an accident was caused by your vehicle.

Own Damage Cover: Apart from third-party liability, some insurers also offer own-damage cover that protects your own vehicle against theft, accidental damages and losses caused due to natural and man-made disasters.

Personal Accident Cover for owner/driver: In case of death or total disability due to accident caused by own vehicle, the owner/driver is compensated up to a certain amount with the personal accident cover.

Co-passengers can also avail personal accident cover: At a little more premium, co-passengers too can get financially protected with a personal accident cover.

Cashless claims can be availed at selected partner garages: Arranging funds for bike repairs and then waiting for claim reimbursement can be troublesome. But, some multiyear two wheeler insurers allow you to easily make cashless claims at authorized network garages.

Quick issuance of policy online: No hassles of paperwork. Documentation and issuance process of policy is easily and quickly done online. You receive one policy document for complete three years.

Option to port your two wheeler insurance from one insurer to another: Once you complete your policy tenure of maybe three years with a multi-year two wheeler insurance, you can easily port your insurance policy from one insurance company to another.

Read Also: Best Car Insurance Renewal 2022-2023

Multiyear Two Wheeler Insurance

If you have a two wheeler, two wheeler insurance is a must.

Although vehicle insurance is mandatory under the Motor Vehicle Act, 1988, about 75% of bikers ride uninsured two-wheelers.

Some do not want to invest much in their vehicle. While others find it difficult to remember renewal dates.

That is where a multi-year or long-term two wheeler insurance policy jumps to your rescue._

What is multi-year two wheeler insurance?

While common two wheeler insurance plans are designed for one year and have to be renewed annually, a multi-year two wheeler insurance policy is unique. This policy allows two-wheelers to be insured for three consecutive years at a time. Policyholders do not need to renew the insurance contract every year as they get a policy certificate for a maximum of three years of cover.

Benefits of taking long term two wheeler insurance for 3 years

Two-wheeler insurance for 3 years offers many benefits over regular ones. Below we have listed the most important of them to make it easier for you to choose one:

1. Avoiding the effects of non-renewal

The period between the lapse of your insurance policy and its renewal can expose you to many risks. For example, heavy fines due to traffic violations as well as financial liabilities of any accident during the period can lead to huge losses.
With bike insurance for 3 years, you can reduce these risks to a great extent for at least 3 years of the policy term.

2. Convenience

In most cases, two-wheeler owners forget to renew their insurance policy after the expiry of their 1-year policy. With 3-year plans, you can actually forget about renewing your policy for 3 years.
This is why these plans are more convenient as they prevent the need to renew your third-party insurance policy every year.

3. Less expensive in the long run

With a 3-year insurance policy, you have to pay the premium for 3 years at once. But in exchange for this one-time cost, you’ll save a lot on your premium payments in the long run.
This is because insurance providers annually revise and impose increases in premium rates for their insurance policies. This increase in premium rate may go up to 10-15% due to inflation.

If you have a 3-year policy, you can save yourself from paying higher premiums till the policy expires. This way, your policy becomes much cheaper in the long run.

4. Get high IDV

Insured Declared Value or IDV is the total sum insured promised by the insurer against the total loss of the vehicle.
IDV = Manufacturer’s Registered Value – given by vehicle depreciation. The value is revised when you renew your insurance policy taking into account the depreciation of your two-wheeler.

Now, when you avail a 3-year insurance policy, your IDV remains unchanged for a period of three years, allowing you to get a higher sum insured against the total loss of your vehicle.

5. High no claim bonus

A no claim bonus is a discount you can get on the premium you pay for your insurance policy if you have not made a claim in the previous year.
With three-year two-wheeler insurance policies, you can enjoy your no claim bonus over single-year policies.

For example, if your previous policy has 20% NCB when you avail a 3-year policy, this 20% NCB will apply to the premium you have paid for all 3 years.

Additionally, few insurance providers offer higher NCB at the end of their long-term policies as compared to one-year policies to increase policyholders’ incentives in this regard.

6. Attractive discounts

In an effort to urge more two-wheeler owners to consider long-term insurance policies, insurance companies offer attractive discounts on them. This discount can make it very beneficial for vehicle owners to avail insurance cover.

7. Break-in Policy for Insurance Renewal

Sometimes the gap between your insurance renewal can warrant an inspection of your two-wheeler before insurance providers agree to renew your policy. This is known as a break-in policy and can lead to higher premium payments later.
When you avail a 3-year long-term insurance policy, you can avoid break-ins with your policy and move forward later without any additional increase in your premium.

With such benefits and more, these multi-year two-wheeler insurance policies are a better option when it comes to protecting yourself from unforeseen financial risks involving your two-wheeler.

As most of the leading insurance providers in India have welcomed this move by IRDA in terms of implementing long term insurance cover, you can avail of several options to choose from.

So quit stalling! Insure your two-wheeler under a 3-year policy today!