IRDAI Withdraws The Long-Term Third-Party Insurance Policies For Vehicles

Back in 2018, the Insurance Regulatory and Development Authority Of India (IRDAI) had made it mandatory for all general insurers to offer only three-year third-party motor insurance policies for new cars from September 2018.

IRDAI Withdraws The Long-Term Third-Party Insurance Policies For Vehicles

However, the authority has now decided to withdraw the three-year third-party motor insurance policy order since August 1, 2020. The IRDAI stated that the distribution of package policies has its challenges due to affordability factors for a large section of vehicle owners in India.

IRDAI Withdraws The Long-Term Third-Party Insurance Policies For Vehicles

Some of the major drawbacks of the third-party motor insurance policy included difficulty for insurers to evaluate the premium for long term 'Own Damage' cover, there were also high possibilities of forced selling from insurers due to the interlinked financial interests and also facing trouble evaluating the no claim bonus over a three-year policy.

IRDAI Withdraws The Long-Term Third-Party Insurance Policies For Vehicles

Now, insurance companies can only sell a one-year duration Own Damage cover along with the mandatory three-year or five-year third party cover. Multi-year Own Damage covers will not be permitted.

IRDAI Withdraws The Long-Term Third-Party Insurance Policies For Vehicles

In other recent auto news, The TVS Apache RTR 180 received a second price hike after the BS6 upgrade. The motorcycle now costs Rs 1,03,950, which makes it Rs 2,500 more expensive (all prices are ex-showroom). The motorcycle gets features such as LED DRLs, semi-digital instrument cluster, racing graphics, large tank extensions, LED taillamp out of many. It also gets telescopic forks at the front and a monoshock at the rear and braking auties are handled by a 270 mm petal disc brake at the front and a 200 mm petal disc brake at the rear.

IRDAI Withdraws The Long-Term Third-Party Insurance Policies For Vehicles

Bajaj Auto has also increased the prices of the CT 110 in India. The price hike was by a small margin of Rs 1,498 and now the CT 110 BS6 (KS) variant retails at Rs 48,410. While the top-spec CT 110 BS6 (ES) model costs Rs 51,520 (all prices are ex-showroom).

IRDAI Withdraws The Long-Term Third-Party Insurance Policies For Vehicles

The motorcycle is powered by a 115.45cc, air-cooled, single-cylinder engine. The unit produces 8.4bhp of power at 7000rpm and a peak torque of 9.81Nm at 5000rpm. The engine comes mated to a standard four-speed gearbox.

IRDAI Withdraws The Long-Term Third-Party Insurance Policies For Vehicles

Thoughts About The Three-Year Third-Party Motor Insurance Policies

Due to the number of flaws in the third party insurance, the IRDAI had to withdraw the order. Plus, it is any day better to get a good (comprehensive) insurance policy done for your vehicle.

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Read more on: #auto news
Article Published On: Thursday, June 11, 2020, 19:15 [IST]
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