Difference Between Single and Multi-year Bike Insurance Plan

To keep your bike protected from unwanted circumstances, insurance for the bike plays a key role. In India, insurance companies offer two types of two-wheeler insurance, i.e. single-year insurance and multi-year insurance. . Both have their unique advantages, and you should know the difference between them. Read on this article to get a detailed comparison between single and multi-year bike insurance.

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Bike Insurance Protects Financially & Legally Both

Bike insurance gives financial protection against any loss or damages to your bike due to accidents, theft, and even natural disasters. In India, it is mandatory to have third-party two wheeler insurance for bikes, as it financially protects against any injury to any third party, property, or loss of life.

Besides, riding a bike without insurance may lead to a hefty fineor imprisonment for up to 3 months, or even both. Therefore, a bike insurance plan effectively protects the bike owner from the financial burden of any mishap, theft, or natural and man-made disaster.

Single-year Bike Insurance

A Single-year two-wheeler insurance policy validates your insurance tenure for a year only. It needs to be revised every year, and hence it is quite a hassle as you need to keep an update on the expiry date. However, it gives you an option to change your insurer after a year if you do not like the services provided by your insurer.

Multi-year Bike Insurance

A Multi-year or Long-term two-wheeler insurance policy insures your vehicle for three to five years. IRDAI has also made it mandatory to have a 5-year insurance cover for every new two-wheeler. A Multi-year policy locks you from any price fluctuation in the premium amount as you make payment only one time. If you are using a Single-year policy, it also gives you an option to upgrade your Single-year insurance policy to a Multi-year two-wheeler insurance policy at the time of existing policy renewal. 

Single-year Versus Multi-year Bike Insurance

Below we have given a detailed chart showing a comparison between Single-year and Multi-year bike insurance policies-

Points of Basis

Single-year Bike Insurance

Multi-year Bike Insurance


A Single-year bike insurance is a type of plan that offers coverage for one year and needs to be renewed annually.

A Multi-year bike insurance is a long-term insurance plan that removes the hassle of policy renewal every year and keeps you protected from the risk associated with the renewal of policy for 3 to 5 years.

Policy Renewal

Single-year policies have to be renewed every year by the bike owner.

You’ll have to renew the policy just once in three or five years, depending on the type of plan you have purchased.



In Single-year policy, you can modify insurance policy every year and take advantage of any offers and discounts.

Multi-year policies are comparatively less flexible than  Single-year policies.


In Single-year policy, price hikes on a yearly basis. Hence, it may cost you more than multi-year bike insurance plan.

A Multi-year bike insurance policy is cost-effective as the premium amount is fixed at the beginning of your policy and it remains the same for 3 or 5 years.


You can include or remove add-on covers every year. Zero-Depreciation, Return to Invoice, NCB Protection, are the different types of cover you can buy with your standard policy.

The flexibility to buy add-ons in multi-year bike insurance plan is restricted. You can buy them at the time of purchasing your policy.

Discount on Own-damage

In Single-year bike insurance, you cannot avail Own-damage (OD) discount by your insurer.

Insurers offer discounts on Own-damage (OD) helping you to reduce the cost borne at the time of issuing the policy in Multi-year bike insurance.

No-claim Bonus Discount

For Single-year bike insurance, you get the benefit of an NCB discount that is less than Multi-year plan.

Multi-year insurance policy is offered with a higher rate of NCB discount compared to a Single-year insurance policy. 

Which One is Beneficial for You? Single-year Policy or Multi-year Policy

As per the IRDAI, it is mandatory to buy multi-year insurance for newly bought two-wheelers. Keeping in mind all the advantages and disadvantages of both the plans, Multi-year bike insurance is cost-effective and hassle-free from annual renewal, while Single-year insurance policies offer more flexibility when you renew the policy every year. However, it is maybe costlier than the Multi-year plan.

Therefore, if you are looking for a convenient and cost-effective option, then Multi-year bike insurance is a perfect choice for you. Otherwise, if you are looking for flexibility and limited protection, then a Single-year bike insurance policy is made for you.


Things to Keep in Mind Before Buying Bike Insurance 

Here are the few points you must consider before buying any type of insurance policy for the bike.

  • Calculate Premium Online: You can calculate your bike insurance premium with the help of an online bike insurance calculator available on the internet before buying the policy. Choose a plan based on things like the age of the bike, location where you reside, engine's cubic capacity, etc. 
  • Know Your Need and Budget: Usually, comprehensive bike insurance plans are customizable. But in the case of third-party insurance for your bike, you are restricted from the customization in the budget. Hence, choose a plan according to your need and budget. Also, we suggest you set a higher IDV for maintaining a budget. 
  • Buy Bike Insurance Online: It is advised to buy an insurance plan online instead of offline. Moreover, you should compare the same type of plans online. This is how you get to know the coverage under a plan and services available at a particular cost. Also, you get low-priced plans and added benefits when you buy online bike insurance.
  • Know About Your Insurer:It is very important to know about your insurer for a faster claim process and hassle-free services. You must verify the authenticity of your insurer by checking their customer reviews and feedback on Google and social media sites. Choose an insurance company that delivers excellent customer service, a seamless claim process, and a lower premium.


Since we have given a detailed comparison between Single-year and Multi-year insurance for the bike, you can easily decide the right insurance policy for you. Both the insurance policies offer protection and accident cover. So, choose a plan according to your need and budget.

Written By: PolicyBazaar - Updated: 01 February 2022

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