In our everyday running around, we forget so many things, renewing your bike insurance being one of them. We remain oblivious to the fact that our insurance has even expired, until the day our friendly neighbourhood policeman gives us an awakening ☹ To prevent this and reduce the number of road accidents, the insurance regulator IRDAI mandated that for a two -wheeler, policy holders need to have a multi-year or a 5 year long third-party insurance policy.
Surprisingly, not many are aware of a two-wheeler ‘Multi Year’ insurance policy. Many of us have got so used to just renewing our two-wheeler insurance once a year and getting done and dusted with it. The insurance regulator mandated that for every new bike, the policyholder should have a third-party insurance of 5 years. What it essentially means is that, if you take a third a party policy today, that policy is valid for the next 5 years.
In case of a Comprehensive Insurance policy, there are two options that have been kept open for policy holders
- A third party policy for 5 years plus an own damage policy of one year
- A third party for 5 years plus an own damage of 5 years
Now, you must be thinking which policy to opt for. Well the obvious answer is, policies that offer you coverage for multiple years. Why?
The obvious answer is because its validity period that is up to 5 years! In all probability, you would might have even upgraded your two-wheeler before your insurance has expired😊! Like the iconic tagline of a yesteryear’s motorcycle that gave exceptional mileage goes- ‘Fill it, shut it, forget it’! The same applies to Multi Year two-wheeler insurance too😊
Anyways, apart from the convenience of the ‘long term’ benefit between renewing your insurance policy, Multi Year Insurance does have other advantages over a single year insurance policy. Let’s take a look the ‘by and large benefits’ of Multi Year two-wheeler insurance:
Premium hikes: In case of regular bike insurance, the premium will be revised every year at the time of policy renewal, but in case of Multi Year two-wheeler insurance, the premium is locked for up to 5 years, and not affected by any price fluctuations. By availing Multi Year two-wheeler insurance, you lock the policy premium and avoid the price revision cycle.
NCB (No Claim Bonus): In case of a Multi Year two-wheeler insurance, the NCB is not nullified when a claim is made, but only reduced.
Cancellation: When you decide to cancel your regular bike insurance, there will be no refund if you had made a claim. On the other hand, you will be entitled to a proportional refund, based on the remaining period of your Multi Year two-wheeler insurance policy.
So, all in all what does a Multi-Year or Long-Term Insurance Policy offer?
- Zero Headaches
- Savings on Premium
- Flexibility of cancellation
- Smooth NCB transfer
At the end of the day, which 2 wheeler insurance is better? Guess you’ve already got your answer!