Getting a two wheeler insurance for your bike is mandatory under the Indian Motor Vehicle Act. Yet, you will find several vehicles on the road that are uninsured. A major reason for this could be the unawareness of people about this law or a lack of concern to renew their two wheeler policy.
With a view to improve the scenario of this dwindling two wheeler insurance statistics and save the consumers from hassles of yearly insurance renewals, you can now buy a policy with multi-year insurance coverage.
What is Multi-Year Insurance Cover?
Multi-Year Insurance cover is a ruling given out by the Supreme Court of India, under which the IRDA (Insurance Regulatory and Development Authority) has ordered all vehicle insurance providers to offer multi-year insurance coverages. The main objective of offering a multi-insurance coverage is to encourage vehicle owners to insure their vehicle and reduce the instances of vehicle insurance policies being lapsed. As per the Supreme Court’s mandate, all vehicles bought after 1“September 2018, can enjoy the multi-year insurance cover. Thus, if you are planning to buy a two-wheeler or planning to renew your bike insurance, you can enquire about this facility your insurance provider.
Benefits of Multi-Year Insurance
No hassles of yearly renewal
The major benefit offered by multi-year insurance cover is the extension you get on your two wheeler insurance policy. A bike owner can now insure his/her vehicle for a tenure of 5 years under this facility. This saves a lot of hassle to annually apply for the policy renewal and re-submit all the documentation and proofs.
Savings on the Premium Amount
Most insurance providers offer discounts on premium under the multi-year insurance policy. As a result, a policyholder saves a lot on the premium amounts. Longer the insurance policy term, higher the money saved. For instance, with a 5-year policy term, a policyholder can save anywhere between 20%-40% on the premium amount.
Easy Online Application
Today, you can buy bike insurance as well as renew your policy while sitting at home. This eliminates the hassle of standing in long queues to get your application accepted or get your vehicles inspected.
Safeguarding Your No-Claim Bonus
NCB in bike insurance is a discount awarded on your premium at the time of policy renewal when you have made no claims during your insurance term. When you renew your insurance policy on an annual basis, you become eligible for 5% benefit on each renewal. A major drawback of this is that any small claim that you make can bring the entire accumulated NCB balance down. However, with a multi-year insurance coverage, making a claim does not necessarily bring down the NCB. In fact, a policyholder can avail up to 40% NCB under the multi-year insurance coverage at the end of 3 years. This is significantly profitable than the 35% benefit in a single-year policy.
Rather than viewing a two wheeler insurance as a liability, you should start looking it as financial security for your vehicle against unforeseen and unfortunate future circumstances. A multi-year insurance coverage will not only help safeguard your bike financially but also save a lot of time and efforts from bothersome yearly renewal processes.
If you are planning to buy a two wheeler policy online, visit our platform today. The comprehensive, as well as third party two wheeler insurance plans, available with us come with attractive premium rates. We offer round the clock assistance on all your insurance queries. While renewing your two wheeler policy online, you can also opt for the top-up cover on bike roadside assistance.
Apply for bike insurance today and avail benefits such as cash-free servicing of your two-wheeler across our large network of garages. To know more about the application and claims process of insurance policies, visit the Finserv MARKETS website, today!
Read our top blogs to know more about bike insurance in India:
“Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere”!