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Top 5 Benefits of Purchasing a Long-Term Bike Insurance Policy

By Juhi Walia
20 July 2022, 6:30 PM

Bike insurance offers you a stress-free riding experience by taking care of unpredictable monetary expenses that can show up if a mishap happens on the road. Despite this, many people don’t protect their bike rides with suitable two-wheeler insurance plans.

A recent General Insurance Council (GIC) report revealed that as many as 60% of vehicles on Indian roads are uninsured, most of which are two-wheelers. IRDAI or the Insurance Regulatory and Development Authority of India has, therefore, introduced long-term bike insurance plans to eliminate the need for people to renew their policies every year. You can now insure your bike for three years in continuity.

Top Advantages of Buying a Long-term Bike Insurance Policy

The Cost of the Premium Gets More Competitive

If you go for a long-term plan, you will have to pay less for a one-time premium amount compared to the sum of individual premium values for each year. The saving done by insurers on administrative costs is passed on to customers in the form of attractive incentives or discounts.

Further, the Motor Vehicles Act, 1988, has made third-party bike insurance compulsory but has allowed the other two - comprehensive and standalone own damage policy variants - optional for users. As a comprehensive bike insurance policy comes with a third-party liability cover that you need to drive on the road without any penalties, it makes more sense to have it.

Further, third-party premium rates are increased by the IRDAI’s notification every year. If you buy multi-year bike insurance policy, you shall be insulated from the financial impact of such hikes.  

Read more - Why Should You Opt for Long-term Third-party Bike Insurance?

Renewing the Insurance Policy Becomes More Convenient

You need not worry about the date when your policy would lapse with the multi-year option. It is very convenient to renew your policy once in 3 years, particularly so if you have multiple policies for different bikes.

If you don't renew the policy on time, you must go through a long process. This involves uploading the registration certificate, previous year’s policy, self-inspection video of the bike, and other formalities. These are time-consuming and make you run out of patience. Also, if you don't renew the policy within 90 days of the policy expiry date, the insurer may decline to renew it. With a long-term plan, such things will become a rarity.

If your bike meets with an accident after the policy’s expiry, you will also not be compensated for damages. With a multi-year policy, you don’t have to trouble yourself with remembering the date the bike insurance policy expires.

The No-claim Bonus (NCB) Becomes More Attractive

NCB in bike insurance is the discount provided on premiums during bike insurance policy renewal if you don't claim in the previous year. In the case of a multi-year policy, insurers are offering attractive NCB slabs to bring more subscribers into their fold.

This implies that if you purchase a long-term bike insurance plan from a new insurer for the first time, the insurer may provide you with the same NCB for a multi-year premium as you were availing for a single-year policy from the previous insurer. 

You may also get a better NCB after the completion of 3 years. The discount percentage may be higher, in some cases, than the collective NCBs added for each year.

Cancelling a Long-term Policy Midway May Fetch You Some Refund on the Premium Paid

If you cancel a long-term bike insurance policy midway for some reason, your insurer may provide you with a refund for the unexpired policy years. Please note that a third-party liability policy only can't be cancelled, except in case of a complete loss. Bike insurance companies also refund a certain amount of the premium if your bike is stolen or it suffers significant damage. The premium for the rest of the period the motorcycle will be rendered unusable and may be refunded. However, this is at the discretion of the insurer.

Enjoy Peace of Mind for a Prolonged Duration

Active bike insurance itself offers a huge relief to the owner. If the policy spans a period of three years, you can enjoy stress-free riding for a longer period. You may increase the policy coverage by opting for bike insurance add-ons at a nominal cost.

If you ever get stranded due to a broken-down bike in a location where help is not readily available, you can benefit from the roadside assistance bike insurance add on offered by the insurer.

It is an offence to drive on the road without valid insurance. If the traffic police catch you, you may be fined INR 2000 or face imprisonment for up to three months or even both. If you find it annoying to renew your bike insurance every year and prefer riding without a cover, you can now steer clear of legal hassles by going for a multi-year policy.


A long-term bike insurance policy offers many benefits, making it an attractive alternative to a single-year plan. You need not remind yourself of the date on which the policy would lapse every year. Discounts and incentives on premiums, underwriting, and NCB, add to the charm of the policy. The convenience of purchase and renewal only makes a long-term bike insurance policy appealing to policyholders.


A Guide to the Major Benefits of Having a Three Year Two Wheeler Insurance Policy

5 Fatal Mistakes to Avoid When Buying Two-wheeler Insurance


1. Is long-term bike insurance's premium competitive over a single-year policy?

Yes, the cost saved by the insurance company on administrative expenses in a long-term policy is passed on to customers through a reduced premium rate.

2. Does the insurance company offer any advantage on the NCB for a long-term policy?

Yes. Some companies offer the same rate of NCB discount on a long-term policy that you are entitled to for a single-year policy upon renewal. And some could offer incremental NCBs too; however, all that is capped to 50%, which is the case with an annual policy. This will apply if you purchase the multi-year policy from the company for the first time.

3. If I cancel my long-term insurance policy midway because my bike was stolen, will I be eligible for a refund of the premium?

It depends upon the insurer. Some companies may offer a refund on insurance premiums if such an unfortunate event occurs.

4. How is a long-term bike insurance policy better from a legal perspective?

You need not worry about renewing your policy every year, hence reducing the possibility of frequent renewals and expired policies too. Hence, you won’t be penalised with an INR 2000 fine and/ or imprisonment of up to 3 months.

5. Which fixes the rate of premium of a long-term bike insurance policy?

If you go for only a third-party policy, the IRDAI will set the premium rates for the same. The premium of the other two policies - comprehensive and standalone own damage policies will be set by the respective insurance companies. In a comprehensive policy, the premium for the third-party cover will be based on IRDAI's directives. The premium for own damage portion will be set by the insurer.

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