The draft proposes to allow all general insurers to offer a 3-year insurance policy in respect of private cars and a 5-year insurance policy for two-wheelers. motor third party liability cover.
premium Coverage for the entire term of the policy will be collected at the time of sale of the insurance.
The pricing will be based on sound actuarial principles, including claims experience and long discounting periods, according to the draft. “The value of add-on and optional covers may be considered considering the cost-efficiency of policy administration,” the draft said. stakeholders Comments by December 22.
It also said that the existing No Claim Bonus (NCB) for 1-year motor own damage policy will be applicable for longer term policies as well. NCB In the case of long term policies, the same applicable at the end of the term of the policy would have been earned if such policies were renewed annually.
In case of long term standalone own damage policies which are issued co-terminus with motor third party liability Cover, the policy term of nine months may be treated as a full year for recognition of NCB during the year.
IRDA has prepared a draft on products of long duration fire and allied hazards. It has proposed policy cover for houses up to 30 years.
Housing includes standalone residential houses, villa complexes as well as apartment blocks managed by housing cooperatives or resident welfare associations or any other body representing home-owners.
Long term fire insurance can be canceled during the term of the policy.
(With PTI inputs)