We Design Your Financial Destiny


(Serious) Words of Wisdom : "The stock market is a giant distraction from the business of investing." ~ John Bogle

Long Term Motor Insurance Policies make a debut

Traditionally, as you would be aware, your car and two-wheelers have to be insured every year.

Given the requests from the industry, Insurance Regulatory and Development Authority (IRDA) has recently accorded its approval for the introduction of vehicle insurance policies for a term of three years.

However, as a baby step, this will presently apply only to
(a) two wheelers, and
(b) third party cover only (own damage cover will continue to be on an annual basis).



These 3-year motor insurance policies would be subject to the following conditions.

- Total premium charged would be 3 times the annual premium as announced by IRDA from time to time (as you may be aware, while companies are free to decide on the premium for own damage cover, third party cover premium is still fixed by IRDA.)
- Companies are not allowed to revise the premium, either up or down, during the policy period
- Entire premium has to be paid in one installment
- Except in case of total loss, insurers cannot cancel this standalone third party cover
- In case of cancellation, premiums for full unexpired years would be refunded
- Terms and conditions on these longer term policies would be the same as those applicable to 1-year products

Given the annual increases in the third party premiums, this would help people save money on their insurance premiums.

Based on the experience, even comprehensive covers — that cover both third party and own damage — may be permitted soon. And hopefully, this benefit would to be extended to the four wheelers too at the earliest.

Meanwhile, here are the 'Ten key aspects of vehicle insurance that you must know'.


An Investment In Knowledge Pays The Best Interest ~ Benjamin Franklin

You Learn A Lot By READING... And Even More By SHARING.

Share Button

Ignorance is like a SIGNED BLANK CHEQUE... anyone can MISUSE it.

Subscribe via Email
Powered by Blogger.

... THREE VALUABLE TIPS ...

1. 'Stock Markets At An All-time High' Is Absolute Nonsense
All-time high at the Stock Markets
Do you believe, at current market levels, you are standing at the edge of a cliff?

 


2. Family Floater Health Policy: Insure Your Parents Separately
Family Floater Health Insurance
Wider and cheaper health cover is possible if parents are insured separately.

 


3. Herd Mentality: Why Do We Follow The Crowd? And Is It OK?
Herd Mentality: Is it good?
(Blindly) follow the crowd and your investments could suffer deep losses.