Kathmandu. In India, 3 years insurance cover of cars and 5 years of two-wheelers has been proposed.
The Insurance Regulatory and Development Authority (IRDAI) has put forward such a proposal. The main objective of increasing vehicle coverage is to increase the spread of insurance in India and achieve the goal of ‘Insurance for All’ by 2047.
IRDAI on Wednesday released a draft for long-term insurance cover. It talks about the insurance policy of ‘Long Term Motor Product’ cover that provides the cover of both third party insurance and self-harm insurance. According to IRDAI, the opinion of the stakeholders will be sought for the time being.
In the draft, all non-life insurance companies have been proposed three years insurance coverage in case of private cars and five years in case of two-wheelers. Premium insurance for the full duration of policy coverage will have to be taken at the time of sale.
In the past, IRDAI has been pushing for long-term insurance policies for new cars and two-wheelers several times in 2018 and beyond. In 2019, IRDAI withdrew from the case. At that time, there was a situation of lockdown due to corona epidemic. However, the insurance regulator had argued that there would be no problem in implementing this policy.
