Great News for Car Owners-Now Renew Your Vehicle Insurance Only Once Every Five Years

Do you own a car or a bike? If not, are you planning to buy one any time soon? Then here is some good news for you. Insurance regulatory body in India, IRDA may soon increase the vehicle insurance period to once every five years instead of every year as per the prevailing requisite. What's more, the good news doesn't end here; you will also need to pay less for the premium amount than ever before if this plan comes through.

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Presently the car owners face a difficult time every year since they need to insure their car annually. Besides their own concerns regarding the same, dealing with phone calls of agents from different insurers makes the situation additionally hard to bear. All thanks to IRDA, this may all change in the coming times giving a breather to the new and current vehicle owners. The regulatory and development body is going to send directives in this regard soon, as the leading Business Newspaper in the country, ‘The Economic Times’ reported recently.

A source from IRDA revealed that the Authority is acting on suggestions from some insurance companies that proposed this change in the current insurance scenario. After a close consideration of the proposals, it is going to make the necessary alterations and unveil the new policy guidelines sometime soon. Initially, they are thinking to implement this only in the two-wheeler category of vehicles. Based on the feedback from the segment they plan to implement it to other segments later as well.

So, how does this modified insurance guideline helps the motor insurance companies? Why are you proposing such alterations in the current insurance setup? The fact is that the hassles related to annual renewal of insurance tend to make most bike and car owners wary. Naturally, they shied away from yearly renewals or purchase of new policies after some time. This in turn leaves the insurers high and dry. So, in a bid to woo their customers back and get them to sign on for car insurance policies with more enthusiasm than before they see the need for such long-term policy coverage.

Naturally, if the new directive is implemented anytime soon, both the car buyers/owners and the insurance companies are going to rejoice. Still, these companies don't want to take any chances. For the time being, they are weighing the pros and cons of the changes as proposed by IRDA. They are going to green signal only when they come to a unanimous decision. This surely is going to take time.

For the time being, it seems that the most difficulty will arise from no claim bonus situations. Currently, vehicle owners can claim reimbursements based on their policy coverage annually in situations where they have driven safely all through the year with no accidents reported. This is just one of the challenges before the insurers, which they will have to face as soon as the new directive sees the light of the day.

Written By: PolicyBazaar - Updated: 15 July 2021
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