Two-wheeler owners will soon be free from the hassle of renewing their policy every year. The Insurance Regulator IRDA has just sanctioned the long-term third-party insurance policy for two-wheelers for a period of three years.
So if you have a two-wheeler, then you can buy a third-party (TP) insurance policy for a 3-year period. This policy will be subject to a few conditions –
The total premium charged for the third-party cover will be 3 times of the annual TP premium for two wheelers as prescribed by IRDA from time to time
The above premium shall not be revised upwards or downwards during the period of policy in any circumstances
The entire premium shall be paid in one installment
Insurers shall not be able to cancel the standalone TP cover in any circumstances except in case of Total Loss
In case of cancellation of policy under total loss premiums for the full unexpired years have to be refunded
There will be no change in other terms and conditions as are in vogue in respect of 1 year product
The circular published on the website of IRDA is purely for Third party two-wheeler insurance cover. It also mentions that long-term comprehensive (own damage + third-party) two-wheeler insurance is also required. Therefore, insurance companies have been asked to file a comprehensive two-wheeler policy for a 3-year period.
