Difference Between Single and Multi-year Bike Insurance Plan

As a bike owner, you must be aware of the legal requirement to buy a two-wheeler insurance plan. Failing to comply with the law can attract steep fines and even imprisonment of up to three months. Despite the regulations, around 75% of bike owners drive without an insurance policy. A bike insurance policy not only comes in handy to ensure you are on the right side of the law but also to protect against repairs and damages. Accidents are unpredictable and a bike insurance policy is what comes in handy to safeguard against legal liabilities as well as the repair costs of your bike. Thus, the importance of a bike insurance plan can be explained well beyond the regulatory mandate. When buying a bike insurance plan, you face two choices — to buy a single-year policy or a multi-year policy. Here’s some helpful information about them to help you choose:

Single Year Bike Insurance Policy

As the title suggests, a single-year policy is valid only for one year. While vehicle insurance plans must be consistently renewed to keep the coverage active, a single-year plan requires you to renew the plan for each policy period. While it may be a hassle for some, it has the advantage of giving you the choice to switch to a different insurance company at the end of its tenure.

Multi Year Bike Insurance Policy

Contrary to a single-year plan, a multi-year policy is a long-term bike insurance plan that is valid for more than one year. For a bike insurance plan, a multi-year policy is valid for five years as per the mandate by the regulatory body, the Insurance Regulatory and Development Authority of India (IRDAI). The IRDAI requires all new two-wheelers registered in the country to mandatorily have multi-year third-party policies. You can visit the official website of IRDAI for further details. Considering the coverage of a multi-year plan extends over many years, the bike insurance price for these plans is higher in comparison to a single-year policy. *

How Does a Single Year Policy Differ from a Multi Year Plan?

Which of the Two Should You Buy?

As per the IRDAI, all new bikes registered need to mandatorily buy a third-party multi-year policy. However, at its renewal, you are free to opt for a multi-year plan or single-year plan. The same is not the case for own-damage covers that are only available as single-year policies. Multi-year plans do offer cost benefits and are hassle-free in terms of renewal each year, while single-year policies allow you to change your insurance company before renewal. You can visit the official website of IRDAI for further details. So, if you are looking for a convenient and cost-effective alternative, a multi-year policy may suit you right, whereas if flexibility is your priority, a single-year policy would be right for you. To compare the differences between premiums of these plans, you can make use of a two wheeler insurance premium calculator which is a free tool offered by insurance companies. *

Conclusion

When choosing between multi-year and single-year bike insurance, consider your long-term goals and convenience. A multi-year policy offers cost savings, stability in premiums, and avoids annual renewal hassles. Meanwhile, a single-year policy provides flexibility for short-term needs. Both have their advantages, but for consistent coverage and savings, a multi-year policy often proves to be the better option. Evaluate your priorities to make the right choice for your two-wheeler insurance. *Standard T&C Apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.