Irda Allows 3-year Third Party Insurance Cover For Two-wheelers

Irda today allowed general insurance companies to provide third party motor cover for two-wheeler for a period of three years instead of current practice of annual renewal, a move which could be replicated for four-wheeler and commercial vehicles.

However, the policy has to be renewed every year in case of own-damage cover. Own-damage cover the risk pertaining to damage of vehicle due to accident.

The three-year standalone third party insurance cover would provide convenience to the user and help insurance firm in collection of premium in one go.

Insurance Regulatory and Development Authority (Irda) said the new policy has been introduced following representation from various general insurance companies for long term motor products.

"The Authority has perused the matter and decided to introduce Stand Alone Motor Third Party Insurance Policy for two wheelers for a period of three years subject to...conditions," it said in a release.

The other conditions include no revision in premium during the period of policy, no cancellation of standalone TP (third party) cover, except in case of total loss where premium for the full unexpired years have to be refunded.

No change in other terms and conditions as against the one year products, Irda said.