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No More Hassle In Renewing 5-Year Insurance Policies: IRDA

By SiliconIndia   |   Tuesday, July 22, 2014
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NEW DELHI: Now no hassle will be there regarding the car insurance renewal soon! This means no more, irritating calls and haggling over the amount. The insurance regulators will come up with a proposal that will allow insurers to offer policies with a one-time, five-year cover and is expected to issue fresh guidelines on such long-term products. These policies could come cheaper, too.

"Some insurers have submitted proposals in this regard and we are evaluating them. We can start with such policies in the two-wheeler segment first," said an official with the Insurance Regulatory and Development Authority, he also added that this will be based on the experience; similar products for commercial vehicles launched reports Economic Times.

This long-term policy cover will be used to promote insurance, especially in rural areas according to the regulator.  "Several companies have pointed out that insurance renewals are not happening, so if we have a long-term product right at the inception, it may also promote the insurance culture," the IRDA official said.

As per the latest data, insurance penetration in the country declined to 3.96 percent in 2012-13 from 5.2 percent in 2009-10. General insurance penetration in the country stands at 0.78 percent. The premium underwritten for the motor segment in 2012-13 was Rs.29,777 crore.

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