What are the Benefits of Multi-Year Comprehensive Two-Wheeler Insurance Policy?
You know that two-wheeler insurance policies come in two variants of comprehensive plans and third party liability only plans. However, what many of you may not know is that two-wheeler insurance plans are also offered for longer tenures.
Yes, there are single year bike insurance plans as well as multi-year bike insurance plans. Read on to know more about these multi-year policies.
What Are Multi-Year Two Wheeler Insurance Policies?
As the name suggests, multiyear bike insurance plans are insurance policies which are offered for longer duration’s of 2 or 3 years.
You have to pay the premium only once when you buy or renew two wheeler insurance online or offline and the coverage would continue for the specified tenure.
Moreover, as per recent changes, if you have bought a bike on or after 1st September 2018, a compulsory multiyear cover for five years has to be bought for third party liability insurance.
Coverage Under Multi-Year Policies
- Multi-Year policies provide coverage for third-party liabilities. Under such coverage, third-party liability faced if a third party is physically harmed or if the third party’s property is damaged would be covered.
- Besides the mandatory third-party cover, multiyear insurance policies might also provide comprehensive coverage. Under the scope of comprehensive policies, damages suffered by the bike due to natural or man-made causes are also covered. Thus, comprehensive multi-year plans provide better and enhanced coverage.
Benefits of Comprehensive Multi-Year Two Wheeler Insurance Online
Besides having a wider scope of coverage compared to third-party liability only policies, comprehensive multi-year policies also have various other benefits. These benefits are as follows –
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No Hassles of Annual Renewals
The best benefit of comprehensive multi-year policies is that you are freed from the burden of annual renewal of your bike insurance policy. Since the policy runs for a longer period, you get uninterrupted coverage over the specified tenure without having to renew the policy every year.
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No Fear of Policy Lapse
Lapse of a bike insurance policy happens when you don’t renew the plan on time and the due date passes. In case of a lapse, when you renew the plan again, there may be an inspection of the bike before the policy is renewed.
Moreover, the premiums are also increased when renewing a lapsed policy.
This inconvenience is absent in multi-year policies. As the cover runs for some years, there is no requirement of annual renewals and the possibility of lapse reduces.
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Premium Discounts
Long term two wheeler insurance plans also offer a premium discount when you buy the policy.
Since you pay the premium for multiple years thus ensuring loyalty with the insurance company over the said period, you get discounts of up to 10% on the premium amount. The premium, thus, becomes affordable.
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Protection of NCB Even After a Claim
In a multiyear comprehensive policy, if a claim is made in any year, the entire earned no claim bonus is not lost, it is merely reduced.
Thus, while in an annual plan you lose the accumulated no claim bonus in the event of a claim, in a multi-year plan, the no claim bonus is protected even when there is a claim.
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Fixed Third-Party Premiums
When you buy a multiyear policy, the third party premium applicable when the policy is bought, is fixed for the coverage duration.
If in subsequent years, the Insurance Regulatory and Development Authority of India (IRDAI) increases the third party premium, the third party premium of your policy would not increase. It would remain fixed for the coverage duration thereby saving you some money.
Conclusion
So, the next time you buy bike insurance, choose multi-year policies to enjoy the above-mentioned benefits.
Almost all insurance companies offer multi-year policies and so you should compare bike insurance before buying. When you compare bike insurance you would be able to buy the best multi-year coverage for your bike.
