Most bike owners in India buy insurance for just one year and then forget renewals. This has led to lakhs of uninsured two-wheelers on the road, which increases risks for riders and insurers alike.
To solve this, insurers now offer long-term two-wheeler insurance for 2, 3, or even 5 years. But is it worth it in 2025? Let’s find out.
What Is Long-Term Two-Wheeler Insurance?
- A motor insurance policy that covers your bike for multiple years (instead of yearly renewals).
- Includes both Third-Party (TP) and Comprehensive options.
- Premiums are paid upfront for the chosen tenure.
Advantages of Long-Term Bike Insurance
1. No Hassle of Yearly Renewals
- You don’t need to remember yearly due dates.
- Avoid penalties for missed renewals.
2. Protection from Premium Hikes
- IRDAI revises third-party premiums annually.
- By locking in a 3–5 year policy, you avoid annual hikes.
3. Continuous NCB (No Claim Bonus)
- If you don’t raise claims, your NCB accumulates over multiple years.
- Higher discounts when you renew after long-term cover ends.
4. Peace of Mind
- Even if you forget, your bike remains insured for years.
- Safer against legal fines for riding uninsured.
Disadvantages of Long-Term Bike Insurance
1. Higher Upfront Cost
- Paying 3–5 years’ premium in one go can be heavy on pocket.
2. Limited Flexibility
- If you sell your bike or switch insurers, cancellation and refunds may be complex.
3. Changing Needs
- Add-ons (like zero-depreciation) may not remain relevant for older bikes.
IRDAI Guidelines for 2025
- Mandatory long-term TP cover (5 years) for all new bikes sold in India.
- For older bikes, 1-year, 3-year, and 5-year options are available.
- Refunds are allowed in case of bike sale, subject to insurer rules.
Case Study: Sunita’s Scooter
Sunita bought a new scooter in Pune in 2023 with a 5-year long-term plan. By 2025, when IRDAI raised TP rates by 12%, Sunita was unaffected. She saved around ₹3,500 compared to riders who renewed annually.
Quick Infobox: Long-Term vs Annual Bike Insurance
| Factor | Annual Insurance | Long-Term Insurance |
|---|---|---|
| Renewal Hassle | Every year | Once in 3–5 years |
| Premium Hike Protection | No | Yes |
| Upfront Cost | Low | High |
| Refund on Sale | Easy | Complicated |
| NCB Growth | Gradual | Faster |
Why This Matters
In 2025, long-term two-wheeler insurance makes sense for new buyers and forgetful policyholders. But if you plan to sell your bike soon, an annual policy may be better.
👉 Next, read: Car Insurance Premium Calculator: How Insurers Actually Price Risk
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