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IRDA may permit five-year policies to simplify motor insurance renewals

IBR Staff Writer Published 22 July 2014

The Insurance Regulatory and Development Authority (IRDA) is reportedly considering to grant permissions for a five-year insurance cover to simplify renewal process for commercial vehicles.

It is believed that the insurance regulator will soon publish guidelines on the proposed type of long-term product, reported The Economics Times.

An unnamed official with the IRDA was quoted by the news agency as saying: "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.

"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."

With the proposed move, the regulator also aims to use this long-term policy cover to promote insurance, especially in rural areas.