Not all dates are fun and effortless to remember. You may want to remember your best friend’s birthday or your wedding anniversary, but do you really want to stress over your two-wheeler insurance renewal date? Not that it is insignificant as missing it can cause losses such as fines, late charges, loss of NCBs and more. The good news is that the Supreme Court of India has asked the insurers of bike insurance in India to make the third-party liability policy valid for five years. By getting an online long-term two-wheeler insurance policy for your bike, you can enjoy the benefits of coverage for several years without the risk of default. However, for a comprehensive two-wheeler insurance cover, you must renew the own damage (OD) component every year. The benefits of multi-year bike insurance include:

• No annual renewals

A long-term policy would cover your two-wheeler for five years. You do not have to renew the policy every year, which means no stress of memorising the dates for renewal and paying fines for missing out on renewals.

• Lower premium

Factors such as inflation cause an increase in the premium rates every year. The Insurance Regulatory and Development Authority of India (IRDAI) fixes third-party two-wheeler insurance policy rates. The IRDAI increases the insurance premiums by some percentage every year. So, during every renewal, you pay a higher premium for the same coverage. Securing your bike for the long term prevents the effects of fluctuations as the premium amount gets locked for five years. The premium cannot increase within the tenure of the policy. Also, many insurance companies provide discounts on long-term policies.

• Easy policy-cancellation process

A five-year policy is a long-term commitment. It can happen that after purchase, you no longer like the services of the insurance provider. Or, you may want to switch because the insurer has a complex claim process. In such situations, you can simply cancel your policy and switch to a different insurer. You can cancel long-term two-wheeler insurance whenever you want. There is no rule that you have to complete the entire policy period before you apply for cancellation. You are free to withdraw from the existing plan in case you find a better plan. The insurer will return the unutilised premium amount. Transfer the NCBs from your existing policy to the new plan to avail of the benefits. You should get an NCB certificate from your current insurer and purchase the new policy from a different insurer before cancelling the existing policy. Submit the NCB certificate to the new insurer so that your bonuses are transferred to the new policy.

• Avoid policy lapses

Renewal of an expired policy involves lots of processes such as two-wheeler inspection, IDV calculation, higher premium rates, and additional paperwork. If you do not renew your insurance for two years consecutively and want to go for a new bike insurance policy, the insurer may want to inspect your bike. These are tiring and time-consuming processes. Insurers undertake this method because there is a long gap between the earlier and new policies. These are called break-in policies and can lead to two situations:

• The insurance company may reject your application if the bike is not in an insurable condition, as per them.
• The insurance company may accept your request, but the insurance premium will be high, negatively affecting your bike’s Insured Declared Value (IDV).

In the case of a long-term two-wheeler insurance policy, these problems would not arise. Through a single purchase, you are protected against the serious consequences of policy-lapse for multiple years.

• Avoid penalties

As per Indian traffic rules, you cannot ride an uninsured bike, and if caught, you may have to pay a hefty traffic fine. If you get involved in an accident and lack insurance cover, you can also face imprisonment. If you are a two-wheeler owner, you should have mandatory active third-party insurance. Otherwise, you will face significant financial risks every time you ride your bike. A third party can also raise legal charges against you in the face of a mishap. The five-year compulsory third-party bike insurance policy for new two-wheeler owners provides a solution to the problem by reducing the risk.

In case you have recently bought a two-wheeler, you must get a multi-year third-party policy. It has the advantage of covering you for a long-term without renewals every year. Even if you have valid two-wheeler insurance with one year term, you should consider multi-year insurance. It has many benefits, such as a lower premium, policy cancellations, and reduced chances of policy lapse. Remembering the renewal date is a challenge and missing it can cause you unnecessary trouble. If the date for your insurance renewal is close, you may consider purchasing a multi-year bike insurance plan to enjoy the benefits.