Insurance is mandatory for vehicles on the Indian roads. Still, people dont always renew their two-wheeler insurance on time. The Insurance Regulatory and Development Authority of India(IRDAI) mandated a multi-year or a five-year-long third-party insurance policy for two-wheeler vehicle policyholders. Not many are aware of the multi-year insurance policy that is available. It is mainly because some people still see buying two-wheeler insurance as a tedious, time-consuming task. However, it is important to look at it as a safety measure rather than a mandatory clause.
A multi-year policy saves energy and time and has the the long-term benefit of annual policy renewal. Multi-year insurance has other advantages over a single-year insurance policy. A multi-year two-wheeler insurance cover has the following benefits:
Annual renewal not required: Since the policy is for a longer duration of time, you need not renew the policy every year.
Premium hikes: The premiums are revised every year during the time of policy renewal in the case of regular bike insurance, and the annual revised premiums are usually inflated. But in the case of multi-year two-wheeler insurance, the premium is locked for up to five years. It means that price fluctuations do not affect the premium. When you avail of a multi-year two-wheeler insurance, you lock in the policy premium and avoid the price revision cycle.
No-claim Bonus(NCB): An NCB is a reward given to the policyholder by the insurance company for the number of claim-free years. Usually, for a normal insurance policy if you make a claim in a particular policy year, the no-claim bonus will be nullified. While, in the case of multi-year two-wheeler insurance, the NCB is not nullified when a claim is made, but it is only reduced.
Easy cancellation: When you decide to cancel your regular bike insurance, there will be no refund if you had made a claim. On the other hand, you will be entitled to a proportional refund, based on the remaining period of your Multi Year two-wheeler insurance policy.
A multi-year policy reduces your paperwork and helps you save the money and time spent on renewals every year. So, you must go for it.
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