Bike Insurance 1032 views August 22, 2019

Multi Year Two Wheeler Insurance – FAQs

If you have recently bought a bike, you will need a good insurance policy to cover it. you have the option of buying a standard two-wheeler insurance cover for it. You also have the option of opting for a multi-year vehicle insurance plan. Have you heard of the multi-year two-wheeler insurance plans? Are you a bit confused about them and need more clarification? If yes, then all you have to do is take a look at this article to get answers to all your queries.

Frequently Asked Questions About Multi-Year Bike 2 Wheeler Insurance

What exactly is a multi-year bike insurance cover?

A general bike insurance plan offers insurance coverage of one year. You have to pay the premium every year to get the motor insurance renewal done. However, when you buy a multi-year two-wheeler insurance policy, you get to stay covered for two or even three years at a stretch. You pay the premium upfront and do not have to worry about expirations and renewals for the entire policy period of two or three years.

What are the benefits of buying a multi-year plan?

Let us take a detailed look at the benefits you get when you purchase a multi-year bike insurance cover:-

Renewals – the biggest advantage you get is the freedom from yearly motor insurance renewals. You do not have to worry about renewing your cover on time. After you purchase the insurance policy, you stay covered under it for a long period of time.

Document – You do not have to worry about changing and updating the bike insurance policy documents every year. A single document stays in power for the entire duration of three years.

Revision of rates – The vehicle insurance premium rates gets revised every year. When you buy a multi-year bike insurance plan, you stay covered against this as the premium is already paid and you don’t have to worry about the revisions and insurance premium hikes.

NCB – The No Claim Bonus (NCB) stays intact even if you make a claim or two in a multi-year vehicle insurance plan.

How is the IDV calculated in a multi-year plan?

The IDV or the insured declared value is the current market value of your vehicle. It is the value that your vehicle has after taking the depreciation into account. when you pay your insurance premium, the IDV is calculated. The insurer promises to pay a maximum sum assured if your bike is stolen or is badly damaged. When you buy a multi-year vehicle insurance cover, the IDV is calculated for the first year, and the insurance provider automatically calculates the IDV for the remaining two years, based on the same rate as the first year.

What happens if I cancel my multi-year plan?

If you choose to cancel your multi-year bike insurance policy halfway through, you can very well do so. You will be given a refund. This will happen after the bike insurance provider deducts the amount you already utilized. For instance, if you cancel the motor vehicle insurance policy after 1.5 years, you will get about half the amount as a refund because you already enjoyed the insurance coverage for the first 1.5 years of the policy period.

Can I switch insurers in a multi-year cover?

If you have bought a multi-year motor insurance policy for your bike, but are unhappy with the cover or even the insurance provider, you can make a switch to another plan. But first, you need to cancel the existing bike insurance policy. the insurance provider will deduct the exhausted amount and refund the remaining to you. you can then compare insurance quotes and see which option is best suited for you and buy a brand new plan.

How to make endorsements to a multi-year plan?

This is a very simple process and is quite similar to getting an endorsement done on any regular bike insurance plan. All you have to do is call up your insurance provider on the helpline number and inform them about the change you wish to carry out. Whether it is a correction in the spelling of your name or updating a new address, you can get the job done quite easily.

How is the no claim bonus calculated in a multi-year plan?

The no-claim bonus is calculated usually at a fixed rate for all three years in multi-year bike insurance cover. It is fixed at a percentage of say 25%. You get 25% for all the three years. Some motor insurance companies in India so offer it at an incremental way and increase the NCB for each claim-free year. Read the insurance policy documents carefully to understand what your insurance provider offers.

Now that you have a better understanding of the multi-year two-wheeler insurance plans, go ahead and get good insurance coverage for your bike.

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