Raju was riding on his bike when he was stopped by traffic police days after the recent enactment of the Motor Vehicle Amendment Act. Though initially unfazed, since all most of his documents were in order, he noticed that his insurance for bike had expired two weeks ago. Sheer forgetfulness cost Raju a dime. Hearing out Raju, the traffic police advised him – that if he tends to forget things, he should preferably get a multi-year insurance done.
A multi-year insurance, as the name suggests, is an insurance copy that is valid for more than a year, usually three or five. The Insurance Regulatory and Development Authority of India (IRDAI) saw unwillingness and unawareness and for insurance renewal as one of the main reasons for non-compliance. Hence to combat the same, a multi-year two wheeler policy was allowed by the authority.
Especially after the passing of the recent Motor Vehicle Act, most individuals are apprehensive of shedding large sums, if caught with invalid documents. If you are like Raju, multi-year insurance fits right for you. Buying a single year or multi-year policy like Bajaj Allianz Bike insurance plans online at Finserv MARKETS saves you from the hassles involved in the physical process. Moreover get the best two wheeler insurance online, as it takes only a few minutes and is available at a minimal cost.
Other advantages of multi-year insurance over single year insurance are:
- Convenience: Multi-year insurance saves you from the trouble of renewing your policy every year. Often, tracking your renewal date in today’s busy living is an intractable activity, especially when you own multiple vehicles. Further, even after remembering the renewal dates, you might not be able to renew the policy owing to some other important work. Such a problem can be solved by opting for a long-term insurance for bike or scooter.
- Stable premium for three years: Multiyear insurance also saves one from the routine annual hike in premium rates – usually 10-15% per annum on an average. Moreover, insurance companies may also increase the Own Damage Premium from time to time. Buying a multi-year two-wheeler policy keeps you protected from such volatility and keeps you tension free. Thus you can enjoy the protection of a comprehensive insurance policy at a stable cost of premium.
- Avoid problems of renewing a lapsed policy: A few of the insurance groups, insist on getting the vehicle inspected after policy has lapsed to determine its real condition. Fixing an appointment and getting the vehicle physically checked might demand taking a day-off from your work. However, buying a multi-year two wheeler policy helps avoid being in such a position.
- Refund: Obtaining a multi-year policy doesn’t mean that you have to unnecessarily be stuck with the same. You can opt to cancel out the multi-year cover, just like a single year policy, at any time during the policy period. You can even get a refund for the unused time as per the norms of your insurance company. However, make sure you have purchased a new insurance policy, before you cancel your previous one only to smoothen things up.
- No Claim Bonus: In multi-year two-wheeler insurance, the ‘no-claim Bonus’ does not fall back to zero, once you ask for a claim.
Though multi-year insurance since its launch has seen many buyers, it holds certain drawbacks than once must be aware of before purchasing. In case of a long-term two-wheeler policy you are insulated from the fluctuations in premium every year, you are unlikely to get any benefit if the premiums decrease in the future. Further, if you plan on selling your vehicle the remaining insurance period will benefit the buyer, and the seller suffers losses on the remaining insurance time period.
If you are comfortable with your annual two wheeler policy and the additional benefit doesn’t seem to be in proportion to your behavioral effort, or if you plan to sell your vehicle in the coming year, there is no problem in sticking with the single-year term policy. You can purchase the best two wheeler insurance of any category on Finserv MARKETS with few simple clicks and even avail extra benefits such as: round the clock assistance, cash free servicing, hassle free renewal, easy claim process.
 Own Damage Premium : The own damage premium is the part of premium fixed as per the Insured Declared Value (IDV) of your vehicle