Introduction

Just the way your bike has been a reliable companion through all your journeys, two-wheeler insurance is meticulously designed to be your bike's ideal partner. When you buy a vehicle, it is mandatory to apply for a two-wheeler insurance policy.

However, a vehicle owner’s responsibility does not just end at insuring their vehicle. They must also renew their policy timely to remain protected against a variety of mishaps involving their two-wheeler and themselves. However, most people in India do not renew their bike insurance on time as they find it difficult to remember the date of policy expiry.

For the lifestyle we lead today, saving time and getting the work done with minimal effort is important and if it is available at our fingertips then it is even more convenient. This is where long term bike insurance comes into picture and saves the day.

Why Opt for Long Term Two-Wheeler Insurance?

Today, insurance companies are willing to offer discounts on the Own Damage (OD) component of the policy premium for long term bike insurance. With long term policies, insurers are able to cut policy-issuing and administrative costs. These savings are then passed on to the customers as a discount.

Motor laws in India make third party insurance cover mandatory as it covers the liability of a third party in case of an accident. The two-wheeler insurance plans available on Finserv MARKETS protects you against the financial losses that could occur due to unforeseen accidents and medical treatment expenses. Being financially prepared even for the worst-case scenario will give you a sense of peace in the future.

Benefits of Long Term Two Wheeler Insurance

  • Skip the hassle of annual renewal

  • Comprehensive insurance policies available for all major two-wheeler brands

  • Save up on money in the long term

  • Additional benefits on No Claim Bonus (NCB)

  • Zero breaks in a policy renewal

  • Avail attractive discounts on long term two-wheeler insurance premium

Coverage of Multi-Year Two Wheeler Insurance

In a long term 2 wheeler insurance plan, you will have third party insurance cover. Whether it is loss or damage, the insurance company will bear the expenses saving you from paying from your own pocket. The most important thing is, you can save yourself from renewing the lapsed policy every year and you can enjoy all the benefits for a longer period. The two components of long term two-wheeler insurance online are:

  • Third-Party Liability

The loss or damage caused by the two-wheeler to someone else’s life or property is covered by the insurance company.

  • Own Damage

Damage to one’s own vehicle is covered by the insurance company. Whether it’s caused due to man-made or natural calamities, fire, unfortunate mishap, theft, etc. are covered.

Inclusions of Long Term Two Wheeler Insurance

Here are some key aspects that are covered under multi-year two-wheeler insurance:

  • Theft of Vehicle

Finding out that your bike has been stolen can be quite stressful. Though insurance cannot bring back your two-wheeler, it can surely offer you the rightful compensation. The total loss incurred due to the theft of your bike is covered under the policy.

  • Damage due to Natural or Man-Made Disasters

Natural calamities and man-made disasters can easily leave you paying hefty repair bills for your vehicle. But on purchasing long term bike insurance, you can rest assured as your insurer covers the expenses incurred on repair or replacement.

  • Third-Party Liabilities

Yes, mistakes do happen which result in unfortunate mishaps. But you can stop worrying because a long term two-wheeler package policy compensates for any third-party liabilities. Be it bodily injuries sustained by the third party, property damage or death of the victim, the insurance policy has got your back!

  • Unforeseen Accidents

Road accidents not only end up leading to third-party liabilities but also cause damage to your own vehicle. A multi-year two-wheeler insurance also offers coverage in case of any loss or damage to your precious bike.

  • Personal Accident

Now that long term bike insurance covers third-party liabilities and own damage, what about injuries sustained by you? The mandatory personal accident cover has you financially secured in case of any injuries resulting from the accident.

Exclusions of Long Term Two Wheeler Insurance

The below-mentioned aspects aren’t covered under a long term 2 wheeler insurance plan:

  • Any natural wear and tear or ageing of the vehicle

  • Mechanical or electrical breakdown incurred by the bike

  • Damage resulting from riding under the influence of intoxicants

  • Loss incurred while riding the two-wheeler without a valid driver’s licence

  • Any damage caused while using the vehicle for other purposes than intended

What is the Premium for Long Term Bike Insurance?

Third-party two-wheeler insurance premium for a tenor of 3 years is supposed to be 3 times the annual premium for a third-party plan and must be paid at once. The premium is not revised during the 3-year span, whatsoever. Also, the stand-alone third party cover cannot be cancelled except in the case of a total loss, wherein the full premium for the unexpired years will be refunded.

The long term two wheeler package policy is a boon for the users as it frees them from renewing the third-party liability policy every year. Fixed premium throughout the policy period saves customers from the annual rate hike. Apart from this, they also get a benefit from the above-mentioned discounts.

Ask your insurance provider for more details on the long-term policy as a few advantages and factors may differ for each company. Many companies offer great discounts on the purchase of long term two wheeler insurance online along with other perks.

Difference Between Long Term Two Wheeler Insurance & Short Term Insurance

Parameters

Long Term Bike Insurance

Single Term Bike Insurance

Coverage Term

The policy period consists of 2-3 years

The policy period consists of one year

Renewal Frequency

As the long term bike insurance has a longer tenor, you don't have to renew the plan annually

Short term bike insurance has to be renewed every year

Impact of Premium Hikes

Third-party premiums of long term bike insurance experience no impact

Third-party premium increases each year

Refund for Mid-Term Cancellation

A proportional refund facility for uninitiated policy terms is available even after making a claim

No refund facility is available if you have made a claim

No Claim Bonus

Additional NCB reward is provided during policy renewal

NCB reward is available as per tariff

NCB Benefit After Claims

NCB reward gets reduced but doesn't become zero

NCB reward becomes zero after a claim

How Safe is it to Ride Without a Two Wheeler Insurance?

Purchasing a bike insurance policy is a must since it offers coverage against various expenses that you might have to incur in case of an untimely eventuality. Riding a two-wheeler without a valid two-wheeler insurance policy is a punishable offence in India.

Based on your needs, you can choose to purchase either a third-party liability insurance policy or a comprehensive two-wheeler insurance policy since it offers enhanced coverage to policyholders.

The only time when your bike does not need an insurance policy is when you stop using it. However, never take risks by not opting for a two-wheeler if you are still using your bike. Here are the four types of hurdles that you could face if your bike does not have a valid insurance policy.

  • Penalty

Each and every vehicle must have insurance to ply on Indian roads. If you are caught driving without an insurance policy in place, you must be ready to pay a heavy fine or worse, face imprisonment of up to 3 months. This rule is enforced by the Motor Vehicles Act, 1988.

  • Loss of NCB

When you don't file a claim for years, the benefits are accumulated in the form of a No Claim Bonus on your bike insurance. Customers are eligible to get a No Claim Bonus after a particular period of time. The No Claim Bonus can also be transferred to your new bike if you are buying one. However, one cannot transfer it if the policy lapses.

  • Legal Liability

If your two-wheeler is damaged when your policy lapses, the entire cost of repairing your two-wheeler has to be borne by you. If you meet with an accident on your two-wheeler, you could be framed for a couple of reasons; the first one is for negligent driving and the second one is for your lapsed policy. You bear a huge financial loss which could ruin the peace of mind of your family.

  • Lengthy Process

If you want to make your lapsed policy active, you have to go through a time-consuming process. The procedure of renewing a lapsed policy is as good as buying a policy. The insurance company may charge a higher premium to renew a lapsed policy or may even reject the insurance proposal.

Parting Thoughts

Now that you understand the benefits and features of long term two-wheeler insurance, you can compare and choose the right bike insurance plan for your bike. Buying a comprehensive bike insurance plan is highly recommended as it saves you from the task of renewing your policy annually.

At Finserv MARKETS, you can buy a bike insurance policy that offers extensive coverage at a reasonable premium. You also get to access benefits such as quick claim settlement, cashless services and round the clock assistance.

To know how much you need to pay for your insurance plan, use our bike insurance calculator today!

FAQs

  • ✔️What is bike insurance?

    A third party bike insurance is mandatory by law under the Motor Vehicle Act. Bike insurance offers protection to your two-wheeler in case of damage, theft, or loss incurred due to man-made and natural disasters. In simple terms, it covers the financial loss incurred in case of unfortunate events.
  • ✔️What types of bike insurance plans are available in India?

    There are two types of bike insurance available in the market - Third Party Bike Insurance - It only covers third-party liabilities and is mandatory by law Comprehensive Bike Insurance - Along with coverage for third-party liabilities, it covers damage incurred by your vehicle in an accident.
  • ✔️What are the different long term plans available for bike insurance?

    The following are the long term bike insurance plans that you can choose from - Liability only plan for five years - It covers all the third-party liabilities. Package plan for five years - This plan extends coverage to your vehicle in case of damage, theft, or loss incurred due to natural and man-made disasters. Also, it covers all the third-party liabilities. Bundled plan for five years - This plan provides comprehensive coverage for one year and covers the third-party section for five years.
  • ✔️Can I renew my expired bike insurance plan?

    Yes. You can easily renew the expired bike insurance at Finserv MARKETS online.
  • ✔️Can I retain/avail my No Claim Bonus when renewing an expired bike insurance plan?

    The No Claim Bonus (NCB) is valid for 90 days after policy expiration. Hence, it is essential to new bike insurance within 90 days after the policy expiry date. You cannot avail/retain the benefits of the No Claim Bonus if you fail to renew the policy within the stipulated period.