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In India, the insurance companies offer two types of bike insurance policies, i.e., single-year insurance and multi-year insurance. Both these policies have unique advantages and if you are a first-time insurance buyer, you must be aware of the difference between the two to make an informed purchase decision. But, first let us understand the importance of bike insurance.

Bike insurance is vital to comply with law and get financial protection

When you purchase a bike insurance policy, you essentially buy a financial cushion against the loss or damages you and your bike may suffer due to accidents, or natural disasters. In India, it is mandatory for all bike owners to have at least a third party two-wheeler insurance. Riding without a valid bike insurance policy is a punishable offence; you may have to pay a hefty fine or face imprisonment for up to three months or both.

What is single-year bike insurance?

As the name suggests, a single-year bike insurance policy is valid for one year. You must renew it every year. Many people consider single-year insurance a hassle, as they have to remember the expiry date and go through the renewal process every year. However, it gives them the option to change their insurance provider after one year if they are not happy with their services and also cusotmise their policy as per their needs.

What is multi-year bike insurance?

A multi-year or long-term bike insurance policy insures your vehicle for more than one year. The actual tenure may vary based on the duration you choose; it can be two, or three years. A multi-year bike insurance allows you to have the coverage for a longer period at the same premium. If you already own a single-year insurance, you can upgrade it to a multi-year policy during renewal.

Difference between single-year and multi-year bike insurance


While buying a bike insurance policy, you may invariably compare the premium of different plans, and choose the one that is affordable, right?

Typically, the insurance companies revise the bike insurance premium every year. Sometimes, IRDA passes a directive to hike the premium price for the vehicle insurances. This means, if you have a single-year premium, you may have to pay a higher premium after each renewal.

On the other hand, when you buy a multi-year bike insurance policy, your premium is set for the full duration you choose; it remains unchanged. As a result, multi-year bike insurance helps you save money on the premium.


Add-ons, also known as riders, are additional coverage options that you can voluntarily buy by paying an additional premium. They help you get protection against specific risks that are not covered under your regular policy.

If you have a single-year bike insurance policy, you can add or remove the add-ons every year to suit your insurance needs. In contrast, if you have multi-year two-wheeler insurance, the flexibility to buy the add-on is restricted.


If you have a single-year bike insurance plan, and have a claim history, you will not get any returns when you cancel the plan. However, if you have multi-year bike insurance, you will be eligible to get reimbursement based on the unused portion of the policy.

Single-year or multi-year bike insurance – which is better?

As evident, multi-year bike insurance has a distinct edge over single-year policy. They may be a tad expensive but they offer a wide range of benefits that you won’t get with single-year insurance. If you are looking for the best long-term two-wheeler insurance, you can consider buying the Two-Wheeler Secure Policy from Kotak General Insurance.

This policy gives you the flexibility to choose the duration; it can be up to three years. It is a comprehensive policy that covers both third-party liability and own damage.

Disclaimer: The content provided is for education and informational purpose only, none of the information contained in our blog amounts to any form of opinion or advice. Please go through policy related documents carefully or consult an expert before making any insurance-related decisions.


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