Team AckoSept 17, 2021
The financial year has just ended. If you’ve had a good year, you must have high hopes as far as the annual appraisals are concerned. So if everything goes as per plan, is a swanky new car on your to-buy list? Or do you fancy a cruiser bike? If you are planning to purchase a new vehicle, gear up to buy a mandatory long-term insurance policy along with it.
A policy which is issued for more than one year. Earlier on, you could insure your vehicle just for a year. But now, the rules have changed.
The new rule states that every new vehicle needs to be insured with a long-term policy. This change has been made by Insurance Regulatory and Development Authority of India – IRDAI, which is the apex insurance body in the country.
If you purchase a car today, you will have, in one go, insure it for a period of three years. A bike, for five years straight. Note that this rule is applicable for the basic third-party liability policy.
You are free to purchase a comprehensive car insurance or two-wheeler insurance for long term as well. In fact, it will provide you with extensive insurance coverage and suitable add-ons. Yes, it will be costlier compared to a bare-minimum third-party liability policy, however, it offers own damage cover and includes the benefits of a third-party liability policy as well as a basic personal accident cover.
From an administrative perspective, it is a good thing as new vehicles will be insured straight away for a long period of time. That means, no more remembering to renew policies, thus reducing financial losses arising due to vehicle-related unfortunate events. Note that your insurance policy will not cover losses faced when you were uninsured.
From a vehicle owner’s point of view, it is mandatory to insure your vehicle if you want to drive/ride on Indian roads. This insures that your policy stays active for a long period of time without annual renewal. Thus eliminating the tension of timely renewals.
By purchasing a long-term policy, you ensure that the policy stays active automatically for a longer period of time. Also, you stay immune to any annual price-rise regarding third-party insurance as you pay for long-term based on the price prevalent while purchasing the policy.
Also, read: New car insurance
Get all your queries resolved by getting in touch with our support team, through email at [email protected] or by calling 1800 266 2256 (Toll-Free) or 1860 266 2256.
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The use of images and brands are only for the purpose of indication and illustration. ACKO claims no rights on the IP rights of any third parties. The ratings are derived from reviews and feedback received from Google and Facebook users on their respective platforms. | *Savings of upto Rs. 50,000 have been calculated on the IDV of Rs. 18,00,000 and 0% NCB. Amount saved is in comparison to tariff rates. Product name: Private Car Policy - Bundled | UIN: IRDAN157RP0014V01201819 |
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