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Two-wheeler insurance for three years

Two-wheeler insurance for three years
Parichay Malvankar
Written by Parichay Malvankar

Insurance Regulatory and Development Authority (IRDA) have introduced third-party motor insurance for two-wheelers with three year tenure.

This might come as a welcome more since it will take away the inconvenience of renewing your insurance policy every year. One can simply get all the insurance related tasks done for once, and renew it three years later.

Indian motor law has made third-party insurance mandatory for all so that it covers liability to a third person in case of an accident. Insurance premium for this three year policy will be three times that of the annual policies. Rates once fixed and the insurance policy applied for, it cannot be revised or changed during the insurance tenure.

Reports suggest that such a move could also be forwarded to the four-wheeler industry. But it seems unlikely that many people would opt for it. Three times the premium would mean a huge sum of money blocked for three years. In the two-wheeler market, where the premium is less, one wouldn’t feel the pinch that much.

Do you support this move by the IRDA?

Source – TOI