If you want to remain stress-free while riding your new bike, you should immediately purchase a good two-wheeler insurance for your bike. As per the Indian Motor Vehicles Act 1988, having at least the third-party insurance for your bike has been made mandatory. To get yourself a two wheeler insurance, click here.
But still, many owners think purchasing bike insurance is an added cost rather than safeguarding your vehicle financially and therefore keep neglecting it.
In order to improve the present scenario IRDAI has made it a rule for all vehicle insurance companies to offer multi-year insurance policies. Now let us discuss if having multi-year bike insurance is necessary or not?
Pay Less Premium
This is one of the top benefits of having multi-year bike insurance, as you can save a big amount on your premium rates. It is the Insurance Regulatory and Development Authority (IRDAI) that decides the rates of third-party bike insurance. Although every year the IRDA increases the premium rates by 20%. These hikes can be avoided if while choosing a plan for your two-wheeler insurance, you select a multi-year policy, as premium rates cannot be increased within a policy tenure.
With a multi-year two wheeler insurance policy, you can easily save extra money through premium discounts.
No More Hassles of Policy Renewal
Renewal of policy every year might be a tedious process for many two-wheelers owners, as it involves lots of paperwork and other factors. Overall, it is a time-consuming process for you. You can just select a multi-year plan to avoid it while purchasing your bike insurance. This will help you to skip the hassles of renewing your policy at regular intervals. You can just extend your coverage for 5 years and ride your bike without worrying about the financial expenses for the next couple of years.
Prevent Policy Lapse
Now that having either a third-party or comprehensive bike policy is made mandatory by the law, not having one might cause you legal problems. Do you always check your insurance papers before riding a bike? The answer is probably no because we often tend to overlook these. But if your two-wheeler insurance policy has already lapsed and you are still riding your bike, you might get into deep trouble.
There are serious penalties or legal issues that you might have to face for your negligence. But all these can be easily avoided if you go for a multi-year bike insurance policy.
Safeguard your NCB
As you know that there is a benefit for you to get a discount on your premium amount if you avail the No Claim Bonus or NCB. If you didn’t make any claims for the past few years, there is a chance that you can claim that amount as a discount on your premium.
But you can’t risk losing it if you fail to renew your policy within the stipulated period. Therefore, in order to save the NCB amount, you can just avail yourself of the multi-year insurance plan for your bike where you no longer have to keep a track of the accumulated NCB every year.
Cancel your Policy at Any Time
It might happen at times that you don’t like the services of your current policy and want to purchase some new insurance policy for your bike. Don’t worry at all about your money getting forfeited, as it won’t be so. You can easily shift from your current policy to a new one after getting the NCB certificate from the current insurance company and purchase a new one before the expiry of the term. The unutilized premium amount will be refunded to you.
A multi-year two-wheeler insurance policy also safeguards your vehicle from break-ins in the policy. It might happen that you fail to renew your insurance policy for a year due to some reason and after that, you purchase new two-wheeler insurance. The new insurer will inspect the gap in your policy which might also make him reject your application or charge you with a high premium amount.
Peace of Mind
And finally, the most obvious reason due to which policyholders prefer long-term insurance policies is to remain stress-free. To know that your papers are up to date and require no need to be renewed or updated, you can take your two wheeler out with more confidence. A multi-year policy will make you ride your bike without any tension of legal issues or unforeseen financial expenses for a long period of time.
So if you want to enjoy the above benefits, consider buying a multi-year insurance policy for your two-wheeler. It will free you from the need to frown over the approaching deadline of policy renewal. Reduced expenses and added benefits are only going to make it better for you. Furthermore, it will safeguard both you and your vehicle from the tedious renewal process at regular intervals.