Is Multi-Year Two-Wheeler Insurance Beneficial?

- Advertisement-

While two-wheelers are the most popular and preferred mode of transport, there are also a lot of risks involved. To protect them and to ensure road safety, the Government of India has mandated the possession of at least basic third-party insurance for all vehicle owners. Most of us opt for the one-year policy, as we are not aware of the endless benefits of multi-year policies which can last up to 3 or 5 years. We have put together a list of benefits of the multi-year two-wheeler insurance to help you make a wise choice on your next renewal. 

Benefits of Multi-Year Two-Wheeler Insurance:

1. Save Money on Premiums:

Most of us opt for basic third-party liability insurance for bikes, due to its reasonably priced premiums. This is because the IRDAI or the Insurance Regulatory and Development Authority of India fixes the standard price for the basic policy. But, did you know that the prices are hiked up by 20% every year? Yes, you heard it, right. However, with long-term insurance in place, you can escape the price hike and continue enjoying the benefits of your two-wheeler insurance policy on lower premiums.

2. Cancel Policy Anytime You Like:

One of the major reasons why most of us do not purchase a multi-year policy is due to the fact that it is a long-term commitment. We are weary of the insurance providers and worried that we might be stuck with them if their services do not meet our expectations. To evade this, insurance providers have made a provision for multi-year policy-holders to cancel their policy anytime they like. With this, they can switch to any other insurance provider and get their unused premium amount and even NCB transferred. 

3. Evade Policy Renewal:

The policy purchase and renewal processes have been made a lot easier and convenient, thanks to technological advancement. But, we still continue postponing renewing our two-wheeler insurance policies till the last minute. With long-term insurance in place, we don’t have to deal with annual policy renewals and be insured for 3 or 5 years.

Also Read: Best e-bikes for Senior Generations

4. Losing NCB:

The NCB or No-Claim Bonus is awarded as an incentive to drivers who have not made a single claim during their policy tenure. You can either redeem them at the next policy renewal or carry them forward for up to 5 years. You can avail of a 10% discount on your premiums with NCB for the first year and can save up to 50% by the fifth year. However, if you make a claim at any point in time or fail to renew your policy, you will lose all your benefits. With multi-year insurance in place, the NCB structure is different and can provide you with better discounts.

5. No Worries of Policy Lapse:

In India, all vehicle owners are expected to own and possess a valid license and insurance policy. Failing to do so can lead to severe punishments. While insurance companies make it a point to remind their customers to renew their policies on time with message alerts, it is up to us to make the payment. If the policy expires or lapses, you not only lose all out on your coverage and accumulated benefits but also are vulnerable to legal action. A multi-year policy saves you from this hassle and keeps you safe and protected for a long period of time.

Follow Us on Instagram (@uniquenewsonline) to Get Regular News Updates for Free

Related Articles

Back to top button