IRDA Comes Up With A Three Year Insurance Cover For Two-Wheelers

Vehicle insurance is one aspect we all tend to overlook in India and the Insurance Regulatory Development Authority (IRDA) is all set to change that. IRDA has come up with a three year version of the third party insurance for two wheelers. This will allow consumers to insure their two wheelers for a period of three years, instead of having to renew the policy every year. This is indeed good news for consumers.

Two wheelers form the major chunk of vehicles which are involved in road accidents and having your vehicle insured will save you from unnecessary expenditure if your vehicle is damaged. A large number of two wheeler owners forget to renew their insurance after the first year and the introduction of the new three year policy will help in reducing the number of uninsured vehicles plying on the roads.

IRDA has issued a circular to all general insurance companies informing them that the premium for third party insurance would be equal to thrice the annual premium and during the tenure of the policy no changes can be made to the amount. This move will help in reduction of policy issuing costs and in follow-ups required for renewals.

As per reports half the motor vehicles plying on Indian roads are uninsured. While the compliance levels are high in big cities, it’s the smaller town and villages where fewer vehicles are insured. A similar policy is likely to be introduced for cars in the near future.

Source : Times of India