Gone are the days when you would have to keep renewing your two-wheeler insurance every year. As per a report published in Economic Times, Insurance Regulator and Development Authority of India (IRDA) has announced that third party insurance companies can now issue up to three years of insurance at one time to two-wheeler customers.
IRDA further added that insurers can neither increase nor decrease the premium of a policy during the validity of the policy. This would go down a long way in saving the general public from the clutches of insurance companies.
The report also says that, as per an estimate 50 per cent of two wheeler vehicles in our country are not insured which is frightening. This new policy plan will definitely help in bringing down the figure, benefiting customers as well as insurance companies.
Insurance companies will also be able to increase their premium collection, thanks to the extra amount that will come in for two additional years in one policy. Having an insurance for a vehicle is mandatory in India but many abstain from getting it renewed due to busy schedules and various other reasons. Now that the time period is being extended this would help a lot as a one time renewal will be applicable for 3 years, if you opt for it that is!
Hopefully this is just the first step and in the future this would be taken up for more type of vehicles, preferably even to four-wheelers.
