Long Term Two Wheeler Insurance for 5 Years

Insurance Regulatory and Development Authority of India( IRDAI) made it mandatory for all the new two-wheelers sold after September 2018 to have a 5-year insurance cover following the ruling by the Supreme Court. This was done to make sure that a large number of bike owners remain insured and also to reduce the cases of expired bike insurance policies in India.

5-Year Third-Party Bike Insurance Policy Premium Rates

(*Source: Insurance Regulatory and Development Authority of India)

Features of Five-Year Two Wheeler Insurance Plans

A five year bike insurance plan comes with the features given below:

1. Long Term Validity

With a multi-year bike insurance policy, there is no need to renew your policy on a yearly basis as it ensures long-term protection for your insured vehicle.

2. Feasible Insurance Policy

Buying a multi-year bike insurance plan is much more feasible and economical as compared to getting the same plan renewed every year.

3. Easy Portability Option

In case the policyholder wishes to change their insurance company during the duration of 5-year bike insurance policy, then they can easily opt for a portability option.

4. Transfer of No Claim Bonus

If the policyholder decides to sell their bike or purchase a new one during the policy duration, then the NCB that has been accumulated over the years is transferable to a new bike in order to get the benefits of discounted premiums in the future.

Highlighted below are some of the advantages of a five year bike insurance plan:

1. No Price Hike

With a five-year bike insurance plan, just a one-time premium payment is to be done and the policy stays valid for a duration of 5 years. As there is an increase in the base premium rate yearly by IRDAI yet due to the lock-in period of 5 years you remain unaffected from the hike in premium amount.

2. No Yearly Policy Renewal

Since your bike insurance policy will be valid for the long term i.e up to a duration of 5 years, so there is no need for you to worry about the due date of the policy for yearly renewals. With the multiple-year bike insurance policy, the risk of getting caught with an expired bike insurance policy reduces.

3. Protect Your No Claim Bonus

NCB is a benefit that a policyholder gets if there is no claim made during your bike insurance policy period. As per the rule followed, even if you make a single claim during the 1-year policy tenure, you lose out on your NCB completely. However, with a long-term bike insurance policy, the benefit from NCB does not become nil.

4. Refund Gets Initiated If policy Gets Terminated

Just as the policyholder does not lose out on the entire NCB benefit after making a claim, a long-term 5-year insurance policy also makes sure that a policyholder does not lose out on the entire premium amount if the policy gets terminated. If a policyholder decides to terminate a 5-year bike insurance policy due to some valid reason, then some portion of the paid premium amount will be returned for the unutilized policy tenure.