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