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Car insurance renewal every five years?

No doubt that the annual renewal of car insurance policy is a big headache for all car users in India.

The owners start receiving pesky calls from various insurance companies selling the best "insurance" scheme. Car owners need to haggle and argue with them in order to get the best insurance deal.

But it seems that this problem is soon going to become a thing of the past.

According to report, the Insurance Regulatory and Development Authority (IRDA) is set to come up with a proposal to allow insurers to offer policies with a one-time, five-year cover.

It is likely that fresh guidelines would soon be issued by IRDA on such long-term products.

These policies could also cost less the earlier policies. IRDA is hopeful that the introduction of long-term policy cover would help in promotion of insurance in rural areas.

Meanwhile, the sales of passenger cars increased 14.76 percent to 1,60,232 units in June as compared to 1,39,624 units in the same period a year ago.

The sales of motorcycle advanced 9.63 percent to 8,76,196 units from 7,99,254 units a year earlier.