- Currently third-party insurance are renewed annually
- Will bring down the hassle of renewing every year
- Will reduce the number of uninsured two-wheelers on the road
The Insurance Regulatory Development Authority of India (IRDAI) has asked all insurance companies to develop a third-party insurance policies for two-wheelers that has a cover period of five years.
It has also asked them to develop policies for four-wheelers with a cover period of four years. Currently, third-party insurances are being renewed annually. Unfortunately, this has led to around 50 per cent vehicles plying on the road without any insurance policies. To bring this number down, the agency wants to introduce long-term third party policies. Currently, there’s a provision to buy multiple year policies but only limited to comprehensive ones.
The introduction of long-term third-party insurance policies will reduce the hassle of renewing policy each year. The insurance companies also try to give some discounts if an owner opts for a long-term policy. It’s a win-win situation for everyone.
