Decoding: Multi year Insurance Policy for your Two Wheeler

Two wheelers are considered as one of the most cheapest and convenient modes of transportation in India and that’s why India has more than 120 million registered two wheelers. From 2014 to 2015, the scooter sector witnessed a jump of 12.9% in sales and every year the sale of two wheelers is increasing in India. But out of 120 million registered two wheelers, 75% of them are uninsured which is a serious issue.

Most of the people forget to renew their two wheeler insurance policy which leads to termination of the policy and its allied benefits. Remembering the date of renewal and renewing a two wheeler policy on time is becoming a hassle for most of the two wheeler owners. Due to such issues, insurance companies have started offering multi year term, two wheeler insurance policy, which lasts for two or three years (as opted) and wipes out the hassle of renewal of the policy yearly. So let’s go through the various aspects of a Multi year insurance policy through this article, so that you can take advantage of it.

Multi year  Motor Insurance Policies:

The multi year policy is a single motor insurance policy for a period of 2 or 3 years. Till now, the multi insurance policy has not been made available for four wheelers and is available solely for two wheelers only. Earlier, motor insurance policies can be taken for a period of 1 year, but due to the problem of renewal and to motivate more people to buy motor insurance, IRDAI allowed long-term insurance policy for two wheelers in 2016. After this allowance from IRDAI, some insurers in India have started offering multi-year insurance policy for two-wheelers, which we will discuss later in the article.

Apart from the lack of awareness about insurance, it was observed that forgetting renewal of the policy was becoming one of the major reasons for such non-compliance. The low frequency of claim was also observed to be a major reason for such a large number of uninsured two wheelers.

Most of the people think that paying Rs.900-Rs.1000 a year as insurance premium is not a good deal as they think that the premium paid by them in the last year wasn’t beneficial for them. After spending a huge amount on purchasing their vehicle, most of the owners don’t like paying another Rs.1000 a year for insurance, which is by the way mandated under law.

Benefits of multi year  Insurance policy:

A multi year policy insurance offers a variety of benefits for the policyholder. Let us enumerate some of the benefits of a multi year insurance policy:

Hassle-free- You don’t have to face the hassle of renewing the policy every year as the multi year insurance policy continues for 2-3 years, as chosen. Remembering the date of policy renewal is a big issue for most of the policyholders and a multi year insurance policy is perfect for them.

No risk of policy lapsation– Renewing a lapsed policy is not an easy process. On renewing, you have to declare a new IDV, a new premium is fixed, two wheeler inspection is done, which takes a lot of time. There are many other disadvantages of renewing a lapsed policy as after renewal your premium amount can rise or the new IDV fixed after renewal can be low. All these situations are a loss for the policyholder, but since the multi year insurance policy gives cover for 2-3 years without any renewal, it removes the risk associated with the lapse of the policy.

 Low Premium- The premium amount of a multi year policy is lower than an annual insurance policy.For example, the premium amount for a Delhi registered motorcycle is Rs.1,197 in case of a 1-year comprehensive policy while the premium amount in a multi year insurance policy for the same motorcycle is Rs3,205. So the total amount of premium which you will be paying in 3 years for a 1 year comprehensive policy will be Rs.3,591. By buying a multi year policy, you can save Rs.386 and hassles of renewing a policy yearly. Also, the premium amount fixed at the issuance of the policy can’t be changed for the entire term which protects you from the hike in annual policy rates.

Higher No Claim Bonus (NCB) discount – The NCB is rewarded to the policyholder is in the form of discount on the premium for a claim free year. Even a minor claim in a year can snatch away your benefits of NCB. The NCB discount given in a multi year insurance policy is higher than the regular 1 year policy which allows you to have more discounts on your premium amount, thereby saving you money.

Best multi year two wheeler  Insurance Policies in India:

Following are some of the best multi year policies for two wheelers in India

ICICI long term two wheeler insurance

  • More than 1850 network garages for cashless claim
  • Optional personal accident cover for co-passenger
  • 5% discount for recognized automobile association’s member
  • Add on covers for electrical and non-electrical item
  • 5% discount ARAI approved anti-theft devices installed in your car

HDFC ERGO two wheeler liability –multi year insurance

  • Protection against increase in annual premium of third party section
  • Instant policy issuance
  • No annual renewal
  • Comprehensive support through dedicated customer support team

Bajaj Allianz long term two wheeler package policy

  • 24/7 roadside assistance
  • No premium hike during the entire term
  • Hassle-free issuance of the policy and easy claim process
  • No need to renew your policy till 3 years

Key Take Aways: 

  • The rate of renewal of two wheeler insurance is very low in India. Most of the people overlook the renewal date and that’s what leads to termination of the policy in case of one-year motor insurance policy. So if you don’t want to go through the hassle of repeat renewals, then a multi year policy for your two-wheeler is the best option for you.
  • If you are looking for a motor insurance policy which allows you to save premium and earn more bonus, then nothing else is better for you than a multi year policy as the premium amount in a multi year insurance policy is comparatively lower than one-year comprehensive policy.
  • The bonus earned in the form of a discount on premium through NCB is also higher in a multi year insurance policy.
  • Having an insurance policy is mandatory in India and most of the people forget to renew their insurance policy which leads to the lapse of the policy which makes driving a two-wheeler on the road, a punishable offense. So ,buying a multi year insurance policy allows you to follow the mandatory rule of having a motor insurance policy in India.

Disclaimer -This is a guest post by Mr. Harjot Singh Narula, Founder and CEO of is not associated with Mr.Harjot Singh Narula. This post is purely for knowledge sharing purpose. have not received any monetary benefits for publishing this post or for referrals. Please visit any link outside at your own risk.

Harjot Narula is founder and CEO of, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies like HDFC Life, Aegon Life, Max Life, Bajaj Allianz and others. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry. E-mail ID-

2 Comments on "Decoding: Multi year Insurance Policy for your Two Wheeler"

  1. in the commercial vechicle is it IMTCLass) inbuild in o.d pre r extra charged. pl clarify sir,. how calculate in pvt insurance co and public sector compnies. by.j.arulmozhi, agent.9486405762

  2. sir pl publish revised t.p tarif after lorry owners strike ap8th 2017.

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