Multi-year motor insurance covers

Multi-year covers seem to be now the rule for motorcycles. Six insurers have been marketing them so far including ICICI Lombard, New India, HDFC Ergo and Bajaj Allianz General. These policies are more affordable than the annual covers as they are provided with 2 to 6% discounts. Besides, they are not subject to the annual tariff increases imposed by the authorities and which may attain 10 to 15%.

Insurance regulatory authority, IRDAI, supports this trend because motorcycle owners generally get insured only on the first year upon the purchase of their motorcycles. Approximately 60 to 70% of damaged motorbikes are not insured.

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