The Insurance Regulatory and Development Authority of India (IRDAI) has now approved long term insurance policy’s that can be a maximum of 3 years. This means, now you have a choice of one, two or three years for your bike insurance. Earlier IRDAI had allowed only for third party insurance in the three year term, the new amendment allows for comprehensive insurance for the same period. These can also be upgraded to zero depreciation ones at a slight premium. This move has come in as an effort to get more two wheelers insured in the Indian market. Currently nearly 60% of the two wheelers are not insured after the first year of ownership. People who apply for the these long term insurance policy’s are also eligible for discounts. New India Insurance is the first company to announce the new three and two year insurance policy. Their three year policy is entitled to a 30% discount and in the same period if there are no claims there is an additional discount of 20% during renewal. For the two year policy, the rates are 20% during application and 15% for a no claim renewal. The no claim bonuses can be upto 50% in certain cases. The long term insurance also protects the policyholder from the year-on-year spike in insurance rates. This long term policy system could soon be launched for the car segment as well. We certainly hope to see other companies also announce their long term insurance policy’s. It is almost a pain to keep track of all the dates and a three year insurance right from the showroom makes a lot of sense.
