There is good news for those buying a new car or motorcycle. If you buy a new car or motorcycle after August 1, then you will have to spend less money on auto insurance. The rules of the car and two-wheeler insurance policy are going to change from August 1, after which customers will have to pay a lower price on their insurance.
What is IRDA’s new rule
The Insurance Regulatory and Development Authority of India (IRDA) has announced the withdrawal of long-term insurance package schemes and ended the rule mandating long-term motor vehicle insurance of three or five years under it. Under this, there is going to be a change in motor third party and on-damage insurance. According to the instructions of IRDA, it will not be necessary to take a third party cover for 3 years on the purchase of a car and 5 years on the purchase of a two-wheeler (scooter, electric scooter or motorcycle). This new rule is going to come into effect from August 1.
Information was given in June
IRDA had notified its decision to withdraw the Long Term Motor Insurance Scheme in June itself. Let us know that in September 2018, long term insurance cover was implemented. Under this, at that time a two-wheeler needed to take insurance of a five-year joint (on damage + third party), and this rule was applied for 3 years for a four-wheeler.
Vehicles were becoming expensive for customers
IRDA has stated that the main reason behind this is that due to the requirement of three and five years for On Damage and Long Term Package Third Party Insurance, it is becoming expensive for customers to buy vehicles and this should be reduced in this crisis.
Those who buy new vehicles will benefit
After the change in insurance rules, it will become cheaper for customers to buy new vehicles and if you buy a vehicle after August 1, then you will now inevitably have a one-year insurance-only insurance cover when buying a new vehicle.