Know 5 Benefits of Buying a Multi-Year Two-Wheeler Insurance Policy. Check out Kotak General Insurance's bike & scooter insurance policy for more information.
A multi-year or a long-term two-wheeler insurance is specially designed to help you retain and enjoy the policy benefits for a longer period without the hassles of renewing it every year. In the hustle and bustle of everyday life, many people tend to forget renewing their bike insurance. However, driving without a valid insurance cover is illegal in India, and a punishable offence.
If you are caught by the traffic authorities, you would be obliged to pay a hefty fine or face imprisonment or both. Besides, driving without a valid two-wheeler insurance would leave you vulnerable to facing severe financial losses if you get involved in an accident.
According to the Insurance Regulatory and Development Authority (IDRA), unawareness of the due date is one of the major reasons why many people fail to renew their bike insurance. Another important reason why bike owners don’t renew their insurance is that they feel it is a futile expense as they hardly get to avail its benefits. However, people don’t realise that accidents are unpredictable and can occur anytime.
So, to encourage bike owners to get their vehicle insured and get financial protection against unfortunate incidents, IRDA has mandated insurance companies to offer long-term or multi-year bike insurance policies for up to three years. A multi-year bike insurance comes as a boon for all as it eliminates the hassles of annual renewal. Also, as many insurers offer online services, renewal is easy; you can complete the process within 2-3 minutes.
• Reduce the risk of policy lapse
Renewing an expired bike insurance can be a cumbersome task. You may have to submit an application form like buying a fresh policy, the insurer will assess the bike’s condition to determine the IDV and premium. The whole process may take time, and you may have to pay a higher premium. A multi-year two-wheeler insurance can help reduce the risk of policy lapse as you can continue to enjoy the coverage and policy benefits for up to three years.
• Lower premium
The premium per year that you pay when you opt for a long-term policy is cost effective compared to one-year policy premium. Also, with the rising inflation, the premium tends to increase every year by up to 10-15%. So, when you buy a multi-year two-wheeler insurance, the premium is fixed for the full policy duration, and you need not worry about increasing premium.
• NCB (No Claim Bonus)
NCB is basically an incentive that your insurance companies give you for not filing a claim in the previous policy year. It is a reward for being a safe rider. In a multiyear bike insurance, the No-Claim Bonus can be availed till the validity of the policy regardless of whether a claim was made during the tenure of the policy.
• Easy cancellation
If you buy a multi-year bike insurance policy, it does not mean you have to continue the policy for its full tenure. You can cancel it anytime, and get a refund of the unutilised premium. However, you must purchase a new policy, before cancelling the existing one.
• Peace of mind
A multi-year bike insurance policy gives you the peace of mind knowing that you have sufficient financial coverage against unfortunate incidents.
Thus, a multi-year two-wheeler insurance offers many benefits. So, get a long-term insurance cover for your bike now from Kotak General Insurance and be assured of financial protection against road accidents. Visit our website's two wheeler insurance page to learn about the long term two-wheeler insurance policy.