The Insurance Regulatory and Development Authority (IRDA) has introduced long-term motor third-party insurance policy with a three-year term. Thus, two-wheeler owners don’t need to renew their motor insurance every year.
Third-party motor insurance is mandatory in India. It covers the liability of a third party by a vehicle owner during an accident.
IRDA said the total premium charged for the third-party coverage would be thrice the annual premium for two-wheelers. Motor third-party premium is regulated by IRDA and the regulator brings out revised rates for these policies every year, based on the claims experience.
The premium would not be revised upwards or downwards during the period of the policy, IRDA added.