This sort of numbers and reports were never possible before, but is possible now thanks to developments in technology.
Do you believe you are riding or driving with proper documents? If yes, then as per a new study from insurance companies, you are part of an elite group on Indian roads. The study shows that almost 35% of cars and more than 65% of two wheelers travel without insurance. If you thought that is the worst part, then think again. The study also shows that there are plenty of fake policies doing the rounds too. This shocking revelation after insurers compared policies that have been issued to those being used. This sort of numbers and reports were never possible before, but is possible now thanks to developments in technology.
There are plenty of non-health insurance companies in the market that have two wheeler insurance policies issued in their name. The main reason cited for this is the rapid rise in vehicles on the road. There are so many vehicles on the road due to the rise in population and job opportunities in most cities. It is reported that there are more such illegal two wheeler insurance India policies in the rural parts of India thanks to the fact that there is no checking.
Another main reason cited for fake policies is developments in printing technology. It has become so easy for companies to create counterfeit documents that fake policies are on the rise. The most common reason people do not have insurance while riding or driving on the road is because they fail to renew their insurance policy after it has expired. With such easy options available online, all it really takes is just a few minutes and a few clicks. Reports suggest that renewal of policies after the first year stands at just 25%. Even though online insurance is available, if there is a break in the insurance period, an inspection has to be conducted which brings down the renewal numbers even more.
So what could be the best way to ensure that more valid insurance policies are on the road? One viable solution could be long term policies for both two wheeler insurance and car insurance. This would guarantee that the costs of the policy are also balanced and that the user does not have to renew his insurance in regular intervals. The only flaw with this system would be to envisage the movement of income and inflation. In fact, such is the case that in European countries, two wheeler insurance has to be renewed every six months.
How will the path be ahead for insurance companies in India? Will there be an introduction of long term insurance policies in the market? We will have to wait and watch.
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