India had never seen the option of single-month premiums for car insurance until Policybazaar stepped in. This new business model allows drivers to purchase motor insurance that can be paid monthly, unlike the annual systems practised. This forward-thinking provides for a more accessible and less financially strenuous option.
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How the Monthly Mode Policy Differs from Traditional Car Insurance
| Feature | Traditional Car Insurance | Monthly Mode Car Insurance |
|---|
| Payment Mode | One-time annual premium | Monthly installments |
| Policy Issuance | Valid for a year | New policy number every month |
| No Claim Bonus (NCB) | Accumulated over time | Resets to zero if payment is missed |
| Insured Declared Value (IDV) | Adjusted yearly at renewal | Constant for 12 months (unless changed) |
| Payment Process | Manual renewal each year | Automated monthly deductions via UPI/Net banking |
Key Features
Paying for car insurance every year can feel like a huge responsibility. What if getting the protection you needed did not come with a long-term obligation? A monthly mode policy grants the freedom to renew easily without any hassle.
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Coverage Term: One month per policy with a new policy issued monthly.
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Guidelines for Underwriting: Stay the same for 12 months, guaranteeing coverage equality.
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Automatic Renewals: Monthly payments through UPI or net banking are deducted automatically, providing uninterrupted coverage.
Benefits
Car insurance can seem challenging, especially when paying the full amount at once. But what if you could break it down into smaller payments? Well, that is where car insurance every month makes life convenient.
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Greater Accessibility: There is no need to pay substantial annual premiums in advance.
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Better Resource Management: Smaller monthly payments make it easy to budget.
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No Need to Renew the Policy Manually: Automatic deductions ensure the policy remains active without lapses.
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Consistent IDV for 12 Months: Unlike yearly policies where IDV differs each year, the IDV stays the same for the first twelve months after applying for the policy unless it is changed.
Read More: What To Do If Your Car Gets Hit: Third-Party Car Insurance
Conclusion
Policybazaar’s monthly mode car insurance policy is a revolutionary feature in the motor insurance industry. With the flexibility of paying coverage premiums over several months, Policybazar seeks to ease the burden of countless car owners. As such, continuous coverage is not financially burdensome. With this innovation, car insurance will indeed become more affordable in India.
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