No matter which vehicle you own, having a valid motor insurance policy for your vehicle is very important for your safety and that of the vehicle at the same time. The Motor Vehicles Act of 1988 has made it mandatory for every vehicle to be insured. Yet among the 120 million registered two-wheelers which run daily on the roads of India, almost 75% of them do not have an insurance. The immediate causes may include lack of interest for further investments, trouble of remembering renewal dates etc. This is where a multi-user or a long-term two-wheeler insurance policy jumps to your rescue.
Unlike the traditional motor insurance policies, which are designed typically for one year and have to be renewed annually, a multi-year policy is unique in its form. Like the name suggests, it is an insurance plan with a tenure for more than one year, and authorizes your bike insurance up to three years consecutively at one time. Policyholders don’t have to renew their two wheeler insurance contract each year as they receive a policy certificate for a cover of maximum three years.
Features of Multi-Year Two-Wheeler Insurance Policy:
- 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.
- Personal accident cover for co-passengers: 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 multi-year 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 can be done online.
- Option to Port your Bike Insurance from One Insurer to Another: Once you complete your policy tenure of maybe three years with a multi-year insurance, you can easily port your insurance policy from one insurance company to another.
Benefits of Multi-Year Two-Wheeler Insurance Policy:
Purchasing a multi-year insurance is indeed advantageous. Here is a list of the various benefits provided by this policy.
- You Can Save up to 20-40% Upfront on Premium: IRDA hikes the third-party liability portion of the premium by up to 20% each year. Multi-year insurance saves you against the hike of third-party premium as well as service tax, hence more beneficiary over a single-year policy.
- Eliminates the Hassle of Early Renewal: As compared to yearly renewals, renewing your two wheeler insurance policy once for three continuous years is much stress-free, for it would eliminate all threats of any arising complication.
- Protection for Long-term: You can now enjoy long-term financial protection of your vehicle for three years without worrying about third-party liability or own damage expenses for the entire tenure.
- Cancellation of Policy is Easy: In a single year plan, if you make a claim in case of theft/loss, you are not eligible for premium refund. However, in multi-year plan, you can get a certain percentage of the premium for all un-expired years.
- Lucrative Discounts Offered: Insurance companies often offer certain upfront discounts on multi-year bike insurance policies.
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Just like motor insurance, two wheeler insurance is also very important. Insuring your bike with a multi-year insurance plan frees you from the hassle of renewing the insurance policy year-on-year. You pay once and stay free from renewals for the next three years. You also protect yourself from revisions in third-party premium rates, which increase as per IRDA regulations. You can also avail the benefits of no-claim bonus during the three-year long tenure, even if you make a claim during the policy period.