As per the Motor Vehicle Act 1988, a two wheeler insurance policy is mandatory for vehicles in India. Driving a two-wheeler without a valid insurance policy is considered as a legal offence and might land you in trouble.
However, renewing insurance policy every year takes a lot of time and effort which not many people want to go through. Some continue to postpone the process as they can’t take time out off their busy schedules while others miss out on the renewal date. So, what is the solution? To ensure you comply with the legal regulations and get the required peace of mind, it is always a good idea to opt for a long-term insurance policy.
You should go for a long-term comprehensive insurance policy. It is a policy which will cover your vehicle for three years straight, thus preventing you from the hassle of renewing it every year.
The Objective of Long-Term Two Wheeler Insurance Policy
The objective of the multi-year insurance policy is to provide coverage for 3 years and eliminate the hassle of annual renewals so that the ratio of lapsed policies can be reduced. It will prevent the bikers from driving without a valid insurance and can also avoid monetary losses in case of a mishap.
Features of Multi-Year Bike Insurance
Third-Party Liability Cover: It covers you against expenses caused to third party due to an accident that was caused by your bike.
Own-Damage Cover: A comprehensive Multi-year Bike Insurancepolicy also offers own-damage cover. In this policy, the insurance company will cover for theft, accidental damages or damage caused to your vehicle due to collision or natural disasters.
Personal Accident Cover: This policy provides a personal accident cover in case of death or total disability of the owner/driver due to an accident caused by the bike.
Cashless Claims: Some insurance policies have tie-ups with certain garages where you can avail cashless claim service for bike repairs and damage correction.
Here are some amazing benefits of buying a multi-year bike insurance plan:
Safety, Security and Peace of Mind
Driving a two-wheeler without a valid insurance policy is not only illegal, but it can also be risky! If your insurance policy is expired, you won’t be able to make a claim in case of an accident. Also, renewing an expired insurance policy is a long drawn and complicated process where you have to take the vehicle for re-inspection and even a minor scratch can reduce the covered amount.
A multi-year two wheeler insurance policy eliminates the hassles of annual inspection or carrying renewed documents year on year.
Saves Unnecessary Headache
Life is busy where you have so many important things to take care of, such as office work, meetings, grocery shopping, health-checkup, school admissions, birthdays, anniversaries and so on.. This can increase the chances of forgetting the renewal date.
With multi-year bike insurance policy, you can insure your bike for three years in one go which means there the bike is insured for a long-term. There are reduced chances of policy lapse when you need to remember the renewal date once every three years. Also, you don’t have to take your bike for inspection every year or do tons of paperwork year after year. Not to forget, paying once in three years helps you plan your finances in a better way.
It Saves Money
A multi-year insurance policy can save you as much as 20-40% on premium as compared to a regular insurance policy. With a multi-year insurance policy, you get respite from the annual hike on the insurance premium as well as from the service tax incurred on the premium rise. Also, some companies offer hefty discounts on the purchase of a multi-year two wheeler insurance policy. When put together, all these result in significant savings.
No Claim Bonus
If you feel that a no claim bonus (NCB) is applicable only on the regular insurance policy, you are wrong. NCB is applicable in case of multi-year two wheeler insurance policy too! If you make a claim in a given policy year, the NCB in case of regular bike insurance will be zero. However, in the case of multi-year insurance policy, it will offer an NCB discount for the 3 years premium that you pay.
Easy Cancellation Options
If you are hesitant to buy a multi-year insurance policy assuming that you will be stuck with it for 3 years, you are wrong again. You can easily cancel or covert the multi-year insurance policy any time during the three years of the policy tenure.
Most insurance companies also refund you the amount for the unutilized policy period, and part of the premium for the unexpired years is also refunded.
A two-wheeler insurance policy is not a compulsion but a safety shield that ensures you are covered when you hit the road. By opting for a multi-year two wheeler insurance policy, you are saving money as well as getting freedom from the hassles of yearly renewals.