Insurance is like a spare tyre. You may not require it, but not having one is not an option.
Check your Eligibility

Two Wheeler Insurance for Three Years

Two wheelers are among the cheapest and easiest mode of transport considering the extremely busy roads in India. They account for almost 70% of the vehicles and a majority of these are uninsured. It is mandatory for the users to apply for a two wheeler insurance policy when they buy their vehicle. A lot of the two-wheeler users fail to renew their annual insurance policies after it expires and to avoid this problem, the Insurance Regulatory and Development Authority (IRDA) has introduced a third-party insurance policy for a period of three years for two wheelers.

The importance of two-wheeler insurance cannot be underestimated in current times. A vehicle owner cannot assume end of responsibility once they insure their vehicle. They must also renew their policy in a timely manner to remain protected against a variety of mishaps involving their two-wheeler and themselves. However, most people in India do not renew their bike insurance on time as they find it hard to remember the date of policy expiry. The thought of renewing the insurance policy slips out of mind while keeping up with the daily hustles and bustles of life.

In India, riding without a valid insurance is a punishable offence. From a legal perspective, a two-wheeler insurance is compulsory in India under the Motor Vehicles Act, 1988. Riding without a valid insurance may result in a penalty of up to Rs.1000 or up to 3 months imprisonment or both. Also, riding on the Indian roads is not a wise option without having an insurance policy.

What are the Coverage of 3 years 2 wheeler Insurance?

A two wheeler insurance policy covers own and third-party damage.

Third-party liability - Here, the loss or damage caused by the two-wheeler to someone else’s life or property is covered by the insurance company.

Own Damage - Here, the loss or damage caused to one’s own vehicle is covered by the insurance company. This damage be man-made or natural.

Every policy covers the third party liability but the long term two wheeler insurance policy for being discussed here only includes third-party liability. In case of own damage, the user has to renew the insurance policy on a yearly basis.

What is the Premium for 3 years Bike Insurance?

Two Wheeler Insurance Online

The premium for the two wheeler third party insurance for 3 years is supposed to be 3 times the annual third party premium and should be paid in a single installment. This premium cannot be revised during the 3 year period, whatsoever. Also, the stand alone third party cover cannot be cancelled except in a situation of total loss, wherein the full premium for the unexpired years has to be refunded.

Apart from the premium, all the other terms and conditions for this new policy are the same as the one year two-wheeler insurance policy. The information about the same can be found with any company providing two-wheeler or motor insurance.

This move by the IRDA serves as an advantage for insurance companies as they will be able to collect the premium for three years in one go saving on administrative charges. New India Assurance is offering a 30% discount to people applying for 3 year third-party two wheeler insurance along with benefits on no-claim bonus. A consumer of New India Assurance long term two-wheeler insurance policy can avail up to 50% discount on no - claim bonus at the time of renewal.

The 3 year two wheeler insurance policy is a boon for two-wheeler users as it frees them from renewing the third-party liability policy every year. The fixed premium during the policy period saves them from the annual rate hike. Apart from this, they also get a benefit from the above mentioned discounts.

Insurance companies have welcomed this new step and certain banks have already introduced the same. For example, ICICI. IRDA plans to launch a similar long term policy for other vehicles soon.

How Safe Is To Ride Without An Active Bike Insurance?

According to the General Insurance Council (GIC) findings for the year 2015-16, about 60% of the 19 crore registered two-wheelers in India are riding without an insurance. Also, two-wheelers are involved in most number of road accidents that take place in India. This is certainly not a good sign as millions of bike owners in India lack sufficient coverage against incidents that may cause losses or damages to the vehicle or injuries to the riders.

Why Long-Term Two-Wheeler Insurance?

The Insurance Regulatory and Development Authority of India (IRDAI) observed that there is a general lack of awareness in India about the importance of insurance. Most people are unwilling to buy an insurance and renew the same every year as they perceive it to be a waste of money as they rarely get a chance to utilise it. What they must realise is that an insurance policy is a contingency plan for an unfortunate incident that you they may encounter without any notice.

To encourage two-wheeler riders to buy motor insurance and renew it on time, the IRDAI has now allowed insurance agencies to provide long-term insurance policies for up to 3 years. Additionally, if you buy a two-wheeler insurance online, there are minimal hassles involved in the process and you can get the insurance done in a matter of few minutes.

Benefits Of A Long Term Bike Insurance Policy

There are several advantages of a multi-year two-wheeler insurance policy. Some of which are explained below:

  1. No Need For Yearly Policy Renewal

    An insurance policy for two or three years can save you from the hassles of remembering the expiry date of the policy and renewing the same going through a tedious process every year. A long-term insurance policy can be convenient as you can ride your vehicle without any worries for a period up to three years.

  2. Lower Insurance Premium

    The per-year insurance premium for a long-term insurance policy is certainly lower than that of an annual insurance policy. On the other hand, the premium rates tend to rise every year due to inflation. By purchasing a multi-year bike insurance policy, you can remain immune from the effects of inflation as you would have already paid the premium for three years in advance. You may also avail various discounts opting for a multi-year insurance policy.

  3. Reduced Risk of Policy Lapse

    Policy renewals, especially through the offline channels can sometimes get really complicated. The policyholder has to state a new IDV (Insured Declared Value) of the vehicle after getting the vehicle inspected. The whole process takes up a considerable time and the insured person may be required to spend more on the insurance due to the yearly rise in the rate of premium. A long-term two-wheeler insurance reduces the risk of policy lapse for 2-3 years and you can ride protected at a lower premium for a longer period of time.

  4. Avail No Claim Bonus

    Whenever you renew your bike insurance policy online or offline, do not forget to avail the No Claim Bonus (NCB) if you have not made any claims on your policy in the preceding year. The NCB is the discount given by your insurance provider for adopting safe riding practices. A policyholder may avail an NCB of 20% while renewing the policy. It will also be applicable for the subsequent years in case you are buying a multi-year insurance policy.

  5. Avoid Penalties And Fines

    In India, it is a punishable offence to drive a motor vehicle without a valid insurance. Even if you ignore the legal implications of a bike insurance policy, you must realise that an insurance policy can be of great support in times of emergencies that are unpredictable in nature. In the absence of an active insurance policy, you will not be able to file the claims on your policy. A long-term policy saves you from running into the risk of policy lapse for a longer duration. It will also save you from paying unnecessary fines and penalties.

  6. Trouble-Free Policy Cancellation

    A long-term motor insurance policy does not bind a policyholder to continue with the same policy till its validity ends. They may choose to withdraw from the same whenever they wish to and they would receive a refund of the unutilised premium. However, it is important to buy a new insurance policy before withdrawing from your existing policy. Also, do make sure that you retain the NCB when you buy a new insurance policy.

  7. Drawbacks of A Multi-Year Insurance Policy

    A multi-year insurance policy can save you from the rise in premium rates as a result of inflation. But in case there is a deflation in the premium rates, you will not be able to take any advantage of the same. You may also incur a certain financial loss if you sell off your vehicle during the tenure of the policy.

Conclusion

The benefits of a long-term bike insurance policy tops its drawbacks. There are rare chances of deflation in premium rate. And if you don’t plan to sell off your vehicle in another 2-3 years, a multi-year insurance policy can be one of the best form of protection you can get. You can easily buy a long-term motorcycle insurance online.

Read More Related Guides

News About Two Wheeler Insurance for 3 Years

  • Aprilia SR 150 bags the ‘Best Scooter of the Year’ in 2016 at the India.com Auto Awards

    Whoever said gearless bikes can’t provide the same sense of adventure that a geared bike does, has clearly not taken the Aprilia SR 150 out for a spin. After winning the title of ‘Best scooter of the Year’ at the India.com Auto Awards, the SR 150 has the phones of booking agents ringing constantly. This powerful 150cc bike brings power to the rider with its sharp looks and stability making it an ideal scooter for Indian roads. Delivering 11.4bhp of power at 6,750 rpm and 11.4 Nm of torque at 5,000 rpm, the SR 150 makes urban commute fast and easy and all of this comes at a reasonable price of Rs.65,000 (ex-showroom Delhi). Taking out a two-wheeler insurance on a vehicle like this is a good safety net to procure. When you have a vehicle that looks this good, it’s bound to attract a few unnecessary elements especially with the recent rise in bike thefts.

    Two-wheeler insurance is an ideal solution to minimise any sort of expenditure that could be incurred due to any unforeseen circumstance and also provides a sense of safety knowing that if anything does happen, a payout will be on its way.

    11 January 2017

  • Scooter sales in India declined post demonetisation

    Scooter sales in India debilitated in November, post the demonetisation process. Out of the total 3,88,692 units sold across the country, Honda Activa topped the list of Top 10 Scooters in November, 2016, with a sale of 1,80,811 units, followed by TVS Jupiter with 54,838 units. Hero Maestro came in 3rd with a sale of 26,320 units. Suzuki Access occupied the 4th place with 24,825 units, followed by Hero Duet at 16,741 units, and Yamaha Ray at 14,844 units. The Honda Dio was at the 7th spot with a sale of 13,383 units. Yamaha Fascino sold 13,019 units, while Hero Pleasure sold 10,349 units. The list of Top 10 Scooters in November 2016 ends with TVS Scooty, with a sale of 7,292 units. Hopefully, by the end of December, the scooter sales will pick up once again.

    10 January 2017

  • Kawasaki KX100 and KX250F To Be Launched In 2017

    Indians will soon get their hands on Kawasaki KX100 and KX250F as it is scheduled to be launched in the 2017. However, these are motocross bikes which is not meant for roads. The ex-showroom price of Kawasaki KX100 is Rs. 4.69 lakhs and the ex-showroom price for KX250F is Rs.7.14 lakhs. As there is no road registration and other taxes to be paid, these bikes will not have a great difference between the ex-showroom price and on-road price. Many leading banks and financial institutions have come forward to extend loans for these bikes.

    28 December 2016

  • Kawasaki to launch three more bikes in January 2017

    With the Japanese manufacturer already launching the W800 this month, it looks to cement its place in the Indian market by launching three more bikes next month - the Ninja 650, the Z650, and the Z900. Looking to raise the bar after the launch of the ER-6N and Ninja 650, that saw a lot of takers in the Indian market, Japanese bike manufacturers look to lure even more bike enthusiasts with their latest four new models. That said, the price of these new machines looks to be a little more than the ER-6N and the Ninja 650.

    16 December 2016

  • British Motorcycle Manufacturer Norton Unveils V4 SS & V4 RR

    British motorcycle manufacturer, Norton Motorcycles, has recently launched two new models of the V4, its new superbike. The V4 RR and the V4 SS are the two new variants now available, which will sport a 1200cc engine, delivering max power of 200bhp and peak torque at 130Nm. While both the motorcycles have been launched as a part of a limited edition all units, 200 of them, of the V4 SS have already been sold. The V4 SS was priced around the range of Rs 38 lakh, while the V4 RR , which is also unveiled as a part of a limited edition, is expected t be priced around Rs 24 lakh.

    1 December 2016

  • Mahindra officially starts with the designing of new BSA bikes

    Mahindra & Mahindra has officially begun with the designing of new BSA bikes. Mahindra took over the legendary motorcycle firm, through its subsidiary Classic Legends, for Rs.28 crores. And has started off on a plan to re-introduce BSA into the market.

    The new bikes are expected to have a displacement range between 500cc to 750cc and are likely to hit the market in 2019.

    Mahindra, which has also taken over the licensing rights from another iconic brand, Jawa, will use both the names when marketing its new lineup of bikes.

    Speaking on the issue, Rajesh Jejurikar, CEO of Mahindra Two Wheelers has said that the company, through Classic Legends, is looking to reacquaint the world with these classics. He also said that Mahindra Two Wheelers is looking to move into a premium and niche segment.

    The company, which has production facilities both in India and France, has started with the designing by taking inputs from its Italy-based racing division. Also, the legendary design company Pininfarina is expected to work on bringing the vehicles into fruition.

    As of now, though, no updates on the mechanical capabilities of these bikes have been revealed.

    29 November 2016

  • Piaggio confirms the launch of new scooter from the SR lineup

    After close to two months of the Aprilia SR 150 launch and its subsequent success, Piaggio, the parent company has said that the company is all set to launch a new bike.

    This bike, as suggested by the company, will bear the same SR branding and will most likely have a more peppier feel.

    Stefano Pelle, Managing Director of Piaggio India, spoke about the same and said that the company is working towards a new design for the upcoming SR scooter which will hit the market in 2017.

    Mr. Pelle further said that the bike will be designed and engineered at Piaggio India’s plant in Baramati, Maharashtra. The new scooter that is expected to come will most likely be a lighter, 125 cc variant of the SR 150 and will be priced around Rs.65,000.

    You can watch this space for more news about the same.

    28 November 2016

  • Factors to Consider When Purchasing 2000cc Bikes in India

    When purchasing a 2000cc bike in India, there are few things you must consider. They are as follow:

    1. Brand: A brand of the company reveals just how well it is trusted in the market. Brands like Bajaj and Hero are likely to offer reliable vehicles while the smaller brands may not offer the same level of reliability.

    2. Price: The price of a bike must also be taken into consideration. If the price is high, make sure that you avail comprehensive feature and value for money.

    3. Mileage: Another crucial factor to consider is the mileage. Regardless of the initial investment cost, the mileage will determine how much money you will be spending over the course of the vehicle’s lifespan.

    Giving enough consideration to these three factors will help you make an informed purchasing decision.

    28 November 2016

  • Next Aprilia SR Scooter to be Released by Piaggio in India Come January 2017

    When the 70th Anniversary edition of Vespa and the 946 Emporio Armani scooters were released in India, the CEO and managing director or Piaggio India, Stefano Pelle, revealed that the company will be launching the next Aprilia SR scooter in India come January 2017. The scooter is expected to be a peppier version of the model that already exists. The Aprilia SR 150 was launched in the country a few months ago at an introductory cost of Rs.65,000, and the new model is anticipated to be an upgrade on the previous bike.

    24 November 2016

  • Bajaj Begins Production of The Dominar 400, Launch Expected In A Month

    In a rather historic moment, Bajaj has recently announced the beginning of the production of the very first Bajaj Dominar 400 (CS 400) motor bike from a production assembly unit which is managed by an all-women team. The manufacturer has also shared a of the celebratory occasion which took place at Bajaj’s manufacturing plant at Chakan.

    The President of Bajaj Auto’s motorcycle business, Mr. Eric Vas, spoke on the occasion, mentioning the historic moment which had taken place at the Chakan plan where an all-women assembly line team has rolled out the new motorbike. Which is all set to up the benchmarks in its segment. He also mentioned that there is plenty of excitement surrounding the launch of the Dominar 400, especially regarding its price and features.

    Earlier to be named as the Kratos 400, Bajaj decided to go with the name ‘Dominar’ for this motorcycle which is believed to be the most powerful motorbike from the house of Bajaj and will not carry any company branding. The bike will be powered by a 373 cc single cylinder engine which comes with a six-speed transmission and will deliver max power up to 35 bhp. With rugged sporty looks, the bike sports disc brakes on the front and rear tyre, along with single-channel ABS as a standard feature and a dual channel ABS is reported to be offered as an option in the future. The Dominar 400 will also feature an fully digital instrument cluster. Pricing for the bike is believed to be in the range of Rs. 1.5 lakh.

    23 November 2016

Resources
Related Reads
reTH65gcmBgCJ7k
This Page is BLOCKED as it is using Iframes.