The IRDAI has asked all companies to issue long-term policies for two wheelers and cars, as a concern for vehicles plying on roads without having third party insurance.
All general insurance companies have been asked to design long-term TP products – five years’ policy for two-wheeler and three years’ policy for cars.
These policies will help both the policy-holders and insurers. The policy holders will benefit in the form of reduced insurance premium as more vehicles will be brought under the TP insurance coverage and it will also help them avoid the hassle of renewing the policy every year. This step has been taken by the IRDAI following a direction from the Supreme Court.