Guide to Long-Term Car Insurance in India

What is Long-Term Car Insurance?

Long-term Car Insurance provides coverage for the vehicle for three years. It is intended to provide financial protection against third-party liability and, in some cases, what is classified as own damage to the car. 

 

Since September 1, 2018, the Insurance Regulatory and Development Authority of India (IRDAI) has mandated that all new cars possess long-term third-party insurance coverage for at least three years, with the duration of coverage extending to five years for two-wheelers. This legislation, facilitated by a Supreme Court judgement, aims to improve road safety by requiring that every new automobile on Indian roads be adequately insured from the beginning. 

 

However, in August 2020, the IRDAI removed the option for long-term package covers that included both motor third-party insurance and own damage insurance for three to five years. Insurers now provide standalone yearly Own Damage insurance plans, giving policyholders additional autonomy and choices for managing their coverage in compliance with safety regulations.

 

Benefits of Opting for Long-Term Car Insurance

Choosing a long-term Car Insurance Policy has various advantages, including:

• Cost savings: One of the primary advantages of long-term Car Insurance is the possibility of savings on your premium. Insurers sometimes offer lower rates for policies that span multiple years, saving you money over the years.

 

• Convenience: Opting for long-term coverage eliminates the hassle of annual policy renewals. This approach not only reduces administrative load or paperwork but also spares you from the burden of tracking annual reminders, thereby simplifying your insurance management. 

 

• Legal compliance: Following the Supreme Court's mandate in 2018, it's mandatory to have long-term third-party coverage for new and used cars and motorcycles. This ensures that you're not only adhering to the legal requirements but also safeguarding yourself from any possible fines.

 

• Stable premium rates: Committing to long-term plans can safeguard against annual fluctuations in insurance premiums, providing a consistent financial outlook.

 

• Peace of mind: Knowing that you have extended coverage can give you a sense of security. This allows you to focus on enjoying your ride rather than worrying about potential cracks in your protection.
   

Coverage Options in Long-Term Car Insurance Policies

Long-term Car Insurance policies can be opted for with different coverage options. Each of these caters to the requirements of vehicle owners and must be chosen with care. Here is a quick overview of these options:

Third-Party Liability Coverage: This is mandated by Indian law and covers damage to third parties in the case of an accident caused by the insured vehicle.

 

Own Damage Coverage: This type of coverage provides protection for any damage to the insured vehicle resulting from accidents, theft, or natural disasters. It can either be added as part of a comprehensive package policy or acquired independently.

 

Add-Ons: Insurers generally provide extra coverage via add-ons. Some examples of such add-ons are Zero Depreciation, Engine Protect, and Personal Accident coverage, allowing you to tailor your policy to your specific needs.

 

Eligibility Criteria for Long-Term Car Insurance

To qualify for long-term Car Insurance coverage, you usually have to fulfil the following criteria:

Vehicle type: Long-term coverage is mostly available for freshly registered cars, thus the vehicle must be a new car or two-wheeler.

 

Compliance with regulatory guidelines: The policy must comply with IRDAI's guidelines, including mandatory third-party coverage for the duration of the policy.

 

Factors to Consider When Choosing a Long-Term Car Insurance Policy

When choosing a long-term Car Insurance coverage, evaluate the following factors:

Premium costs: When browsing for insurance plan options, it's best to research details and compare costs across different plans. This comparison allows you to pick what is most essential to meet your needs and balance that with paying more for add-ons only if you need that support. This way you can aim to secure the best possible deal without compromising the coverage you need.

 

Insurer reputation: Research the claim settlement ratio and read customer evaluations. This will aid you in understanding the reliability and the quality of service provided by the insurer. Companies like Shriram General Insurance pride themselves on providing reliable customer care support.

 

Coverage options: Examine the policy's provisions and exclusions to see whether they meet your needs. Take into consideration any add-ons such as Personal Accident insurance or Roadside Assistance for more comprehensive coverage.

 

Claims process: It is essential to be familiar with the claims process, which includes knowing what paperwork is required and the usual settlement time frame.

 

How to Apply for Long-Term Car Insurance in India

Obtaining a long-term Car Insurance Policy is a good option for any car owner, as it provides not just peace of mind but also financial security against unforeseen accidents.

 

Shriram Car Insurance's application process for long-term Car Insurance is user-friendly and efficient, allowing you to buy insurance from the comfort of your own home or from anywhere you can get online. The steps below outline the process of swiftly and effectively acquiring long-term Car Insurance from Shriram.

• Enter the basic details about the new car: Begin by inputting the necessary information to estimate the premium due. This includes:
  • Mobile Number
  • Details of the car include the manufacturer, model, and registration date.
     
• Provide vehicle owner information and select a suitable policy/add-on: Next, enter your personal information, such as name, email address, mobile number, etc. Choose the insurance that best meets your needs, and then add any additional coverages to safeguard your vehicle.
   
• Complete your online payment: Finally, finish the online payment procedure by selecting your desired payment method (debit card, credit card, or net banking). Once your payment is confirmed, you will obtain your long-term Shriram Car Insurance immediately.

 

When it comes to finding the perfect blend of affordability and comprehensive coverage, Shriram Car Insurance stands out as an excellent choice. With a smooth claims process, minimal paperwork, and dedicated customer support, Shriram Car Insurance always puts customers first. 

 

Renewal and Claim Process for Long-Term Car Insurance

Long-term Car Insurance coverage typically does not need to be renewed until the term of coverage has ended, and this could be 3 to 5 years as explained above. Nonetheless, staying up to date on your coverage information and ensuring that it is maintained could help you prevent gaps in your insurance.

In the case of a claim, here is what to do:

1. Notify the insurer: Contact your insurance provider right away to report the specific details of the occurrence, including the time, place, and circumstances.

 

2. Document the incident: Gathering evidence is critical for supporting your case. This involves photographing the relevant places or items and getting testimonies from witnesses who can back up your claim.

 

3. Submit the claim form: Make sure you complete the claim form and submit it to the insurer with all required documentation. This includes the FIR (if applicable), your vehicle's registration information, and any prior insurance documentation you may have.

 

4. Claim assessment: The insurance company will review the claim and may send an inspector or claims surveyor to examine the vehicle.

 

5. Claim settlement: Once authorised, the insurer will process and pay the claim amount in accordance with the policy conditions.

 

Summing Up

Opting for long-term Car Insurance policies is a practical solution for those seeking thorough and stress-free protection. These policies provide multi-year third-party insurance with the option for additional personal damage coverage. With long-term Car Insurance, the renewal procedure is streamlined, you are protected against possible increases in premiums, and get significant No-Claim Bonus (NCB) advantages. Whether you've just purchased a new vehicle or are looking to enhance your existing insurance, a long-term plan is an effective way to conserve both time and money, all while ensuring your peace of mind.

 

FAQs

1. What is long-term Car Insurance?

Long-term Car Insurance offers insurance coverage for three years. This type of insurance includes compulsory third-party liability coverage, providing financial protection in the event of an accident where you are held responsible for causing injury or damage to another party.

 

2. Is long-term Car Insurance mandatory in India?

Yes, according to a mandate from the Supreme Court and the Insurance Regulatory and Development Authority of India (IRDAI), all new cars are mandated to have long-term third-party insurance.

 

3. What happens if I don’t renew my long-term Car Insurance?

Long-term insurance policies do not need to be renewed annually; instead, they remain in effect until the end of the term. Maintaining continuous coverage throughout the term is important to prevent potential legal complications.

 

4. What is the claims process for long-term Car Insurance?

The process of filing a claim typically includes informing the insurance company about the incident, completing a claim form, providing all required documentation such as evidence or receipts, and then awaiting the insurer's assessment and finalization of the claim.

 

5. Are add-ons available with long-term Car Insurance?

Shriram General Insurance provides long-term Car Insurance policies with additional features, or add-ons, that can provide additional coverage and benefits beyond the basic policy