Annual car insurance renewals can be seen as a tedious task, often overlooked. Neglecting it puts you at risk financially and legally. To address this, the Insurance Regulatory and Development Authority of India (IRDAI) mandated multi-year policies from September 1, 2018, preventing such situations.
Contents Of A Multi-Year Car Insurance
A multi-year car insurance online policy, as the name suggests, lasts for several years without annual renewals. This provides extended financial coverage. Now, let’s identify the essential components of a car insurance policy. Learn how to check car insurance online easily as a beginner when exploring the details of multi-year car insurance.
The Required Facet
The Motor Vehicles Act of 1988 in India requires all car owners to have third-party car insurance. The new regulation mandates a multi-year third-party insurance policy, but temporary coverage is still an option for existing vehicle owners. Comprehensive car insurance is not compulsory.
A third-party car insurance online policy protects the policyholder from financial losses caused to anyone other than themselves or their vehicle occupants. This includes other drivers, pedestrians, and street vendors. Without third-party insurance, the owner is responsible for covering these costs.
For instance, driver A of a hatchback car and driver B of a sedan car were unintentionally involved in an accident. Driver A is responsible for paying for any damage to Driver B’s vehicle if it is determined that Driver A was the one who caused the accident. It is well known that fixing or replacing a sedan car’s parts is expensive. In this case, driver A will be saved by third-party insurance. Without it, he would have to pay for the whole thing out of his pocket.
- Long-Term Comprehensive Policy
Opt for multi-year own-damage (OD) and third-party (TP) car insurance for long-term coverage and protection against annual premium increases. While slightly pricier, it’s a wise investment for those who remember to renew on time. Claims are subject to terms and conditions set forth under the motor insurance policy.
- Extended-Term Third-Party Brief Own Damage
The second choice is to purchase a vehicle insurance policy for three or more years, plus one year of own damage protection. Your policy will be less expensive than a long-term comprehensive policy, but you can still do the process of car insurance renewal annually. To maintain financial protection against damages to your vehicle, you must annually renew the own damage portion of your policy. Claims are subject to terms and conditions set forth under the motor insurance policy.
- Extended Coverage For Third Parties
Buying only multi-year third-party insurance and forgoing the own damage component entirely is an additional choice. This will be the least expensive option, but remember that any damage to your car will not be covered, and you will be responsible for paying for any repairs necessary for your personal injury. Even though you purchased car insurance, choosing this option may leave you underinsured. Claims are subject to terms and conditions set forth under the motor insurance policy.
To stay within the law, you must purchase third-party car insurance, whether you do so online or offline. This will guarantee your financial security. Online shopping is the most convenient way to buy third-party car insurance, offering more advantages than traditional offline shopping.
Standard T&C Apply
Visit the official website of IRDAI for further details.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.