The Insurance Regulatory and Development Authority of India (IRDAI) has mandated for all the general insurance providers of India to offer multi-year third-party insurance. Rather than offering a single year third-party insurance policy, three years of insurance coverage will have to be offered by the insurance providers to the cars owners. Similarly, five years of insurance plan will be offered to the two-wheeler owners.
It is one of the greatest moves of the insurance industry. It not only provides long-term insurance coverage to the vehicles but also cuts down the count on non-insured cars and bikes on the Indian roads. It also saves the customers from the hassle of yearly insurance renewals. It is applied only on purchasing third-party vehicle insurance and the comprehensive plan owners can still purchase the policy for a year.
- Why do we need Multi-Year Third-Party Insurance?
If you buy a third party car insurancepolicy for vehicles, it offers cover for damages as well as losses that are caused to the life or property of any third-party due to the vehicle that you own. Hence, it provides you with financial protection against the losses caused to a third-party.
If you have a multi-year insurance plan, it will ensure that you are protected for the long term and not have any complications. Also, it provides you protection against any legal liabilities that were incurred because of death, injury or damage caused to a third-party.
If a third-party insurance policy is purchased for multiple years, it is more affordable and cheaper than purchasing the same plan every year.
- Tips for Renewal
The car insurance renewal policy is equally important to buy a new policy. In case, your car insurance policy is nearing its expiry date, consider the following tips mentioned below:
- The car insurance companies will either notify you about the motor insurance renewal through a telephone call or send an email well in advance before the policy expires.
- You should know the basic details about your car insurance policy, like the offerings and the expiry period. Also, you should be ready for the renewal of the policy before it expires.
- If you want to switch your car insurance, you must buy a new policy before your current car insurance policy expires.
As per thelaw Motor Vehicles Act, 1988 as mandated third-party insurance cover, to give you financial protection against any accident expenses that are occurred to the third-party. Hence, to cover your vehicle against any kind of loss or damage, you should take a comprehensive insurance plan.
Premiums of the comprehensive car insurance plans, however, depend on several factors like make and model of your car, Insured Declared Value (IDV) and the area where you reside.
Therefore, if you plan to purchase a new car or bike, you might have to shed that extra money in taking multi-party insurance with your vehicle. It will certainly improve the count of insured cars as well as bikes plying on the roads of India.