Single-Year Or Multi-Year Bike Insurance? Things To Consider

Bajaj Allianz bike insurance protects you financially against any loss or damage to your bike caused by accidents, theft, or even natural disasters. In India, third-party two-wheeler insurance is required, as it financially protects against injury to a third party, damage to their property, and loss of life.

In addition, riding a bike without insurance may result in a substantial fine, up to three months in jail, or both. Consequently, a bike insurance policy protects the proprietor from the financial burden of any accident, theft, or natural or man-made disaster.

Annual Bike Insurance

A one-year two-wheeler insurance policy extends your coverage for only one year. It is quite a burden to keep track of the expiration date, as it must be revised annually. However, it allows you to switch insurers after a year if you are unhappy with the services provided by your current insurer.*

Multi-year Bike Insurance

Your vehicle can be covered by a multi-year or long-term two-wheeler insurance policy for three to five years. IRDAI has also mandated that all new motorcycles have a 5-year insurance policy. A multi-year policy protects you from premium price fluctuations because you make a single payment. Suppose you are currently using a Single-year policy. In that case, you can convert to a Multi-year bike insurance policy at the time of your existing policy renewal. * #

Annual versus Multi-Year Bike Insurance

Below is a comparison illustration between Single-year and Multi-year policies:

  • Single-year bike insurance is a form of policy that provides one-year coverage and must be renewed yearly. Multi-year bike insurance is a long-term insurance plan that eliminates the inconvenience of annual policy renewal and protects you from the risk of renewal for three to five years.*
  • Single-year policies feature annual premium increases. It may cost you more than a multi-year plan. The premium for a multi-year bike insurance policy is fixed at the commencement of the policy and remains the same for 3 or 5 years.*
  • Most insurers do not offer Own-damage (OD) concessions for Single-year bike insurance. Insurers do offer concessions on Own-damage (OD), allowing you to pay less for Multi-year bike insurance at the time of policy issuance.*
  • You can install or remove add-on covers in Single-year insurance. You can purchase Zero-Depreciation and NCB Protection in addition to your standard policy in Annual insurance. The flexibility to purchase add-ons is limited in multi-year bike insurance. Check online to know more.*

Which one is advantageous for you? Single-year versus Multi-year Policies

According to the IRDAI, newly-purchased motorcycles are required to have multi-year insurance. Considering the benefits and drawbacks of both plans, multi-year bike insurance is more cost-effective and hassle-free during annual renewal. In contrast, single-year insurance policies offer greater flexibility during annual renewal. Nonetheless, it may be more expensive than the Multi-year plan. * #

Therefore, multi-year Bajaj Allianz bike insurance is ideal if you are searching for a practical and cost-effective option. Alternatively, a single-year bike insurance policy is ideal for flexibility and limited coverage.

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* Standard T&C Apply

# Visit the official website of IRDAI for further details.

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.