India is populated with two-wheeler riders. The busy roads and increased traffic make it the preferred vehicle for many. It offers flexibility and speed, unlike automobiles. However, you are at a greater risk of accidents and damages as a bike owner. Hence, the Insurance Regulatory and Development Authority of India (IRDAI) mandates having Bike Insurance. The policy secures you and your vehicle against unwarranted threats.
The extent of coverage depends on your selection between Third-Party Liability and a Comprehensive Plan. The former covers only liability, whereas the latter offers its damage cover too. Consider your needs and select based on your affordability and needs. A Liability-Only Policy is a minimum requirement. It comes with one-year validity.
However, you get to extend it to three years with a Multi-Year Insurance Plan. Doing so opens up a range of benefits like:
Avoid unnecessary loss
You never know when a mishap may occur. Theft, natural calamity, accidents, fire, etc., come without warning. So, letting your policy lapse results in a risk of loss. You face the financial burden when there is a sudden occurrence. Also, if the traffic police spot you without Two Wheeler Insurance, you pay hefty fees. A Multi-Year Plan prevents you from getting into these unnecessary losses.
With standard policies, renewal happens every year. Hence, you pay the premium rates prevailing at the time. This proves costly as IRDAI revises the rates annually. You end up paying a slightly higher premium regardless of the Policy type. This issue gets solved with a Multi-Year Policy. It locks the cost for three years which helps you avoid annual renewals. Besides, insurers also provide an upfront discount with the Multi-Year Policy.
Safeguard No Claim Bonus
It is the most appealing element in Two Wheeler Insurance. You get it as a reward for raising zero claims for a year. The typical rate is 20% to 25% of the premium amount. But you get to extend it up to 50% if you have five consecutive claim-free years. The only catch is you must raise zero claims. This means, even if there is a minor claim during this period, you lose out on NCB. A longer-term policy helps you avoid this as you need not track NCB each year.
Eliminate renewal hassles
Unfortunately, getting Motor Insurance is not a one-time solution. You need to renew it every year to keep it active. Or else, you face a penalty and have to buy a new one if it is too late. This appears like a hassle to most people. Despite the digitised process, renewing before expiry becomes a task. You get rid of this hassle for three years with a longer-term. The reduced regularity makes renewal bearable.
When you lapse your policy or delay the renewal, there is a considerable gap. This period may affect your motorbike’s condition. Hence, insurers inspect before you renew the plan. This lets them readjust the insurance terms and change the premium if needed. Therefore, it is a good idea to prevent this inspection altogether. You do this by opting for a three-year online Bike Insurance.
Buying long-term Motorbike Insurance does not mean you are bound to it. You still have complete flexibility to cancel the plan anytime, like a single-year policy. Upon doing so, you get a refund for the unutilised time. However, you must ensure to buy a new policy before terminating the Multi-Year Plan. You are allowed to collect the NCB earned on the same to lower the premium.