2-wheeler insurance: 3-year third-party cover a win-win for consumer, insurer 20-Aug-2014Source : IRDAThe Insurance Regulatory and Development Authority (Irda) has introduced a three-year term for third-party motor insurance of two-wheelers. This will enable owners to insure their two-wheelers for three years and save them the hassle of renewing the cover every year. The regulator has also encouraged non-life insurers to come up with such long-term motor policies that cover even own damage. According to an Irda circular, the total premium charged for a three-year third-party insurance will be three times the annual third-party premium for every two-wheeler as prescribed by the regulator from time to time. The premium will not be revised during the period of the policy in any circumstances and will have to be paid in one instalment, subject to compliance of Section 64 VB of the Insurance Act, 1938. Also, insurers will not be able to cancel the standalone third-party cover in any circumstances, except in case of total loss. In the latter case, Irda has mandated that the premiums for the full unexpired years will have to be refunded to the customer. The insurers cannot change the terms and conditions after the policy is underwritten. Insurers who want to offer the three-year cover will have to submit a letter of intent to Irda and will be treated as submission under file-and-use guidelines of the regulator. “The authority is also conscious about the fact that there is a need of long-term comprehensive (own damage as well as third-party) cover also. Insurers are encouraged to file three-year term comprehensive policy also for two-wheelers as per file-and-use guidelines,” says the Irda note.
Posted on: Sat, 23 Aug 2014 11:50:00 +0000
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