The Insurance Regulatory and Development Authority of India vide its notification dated 8th June 2020 has decided to withdraw long-term third party insurance of 3 years for four wheelers and 5 years for two-wheelers with effect from August 1, 2020.
Earlier, the Supreme Court had ordered that long-term policies of five years for two-wheelers and three years for four-wheelers would be mandatory to ensure vehicles running on Indian roads have valid insurance covers. Following the order, the IRDAI had directed all general insurers to offer only three-year Motor Third Party insurance policies for new four-wheelers and five year Motor Third Party insurance policies for new two-wheelers with effect from September 1, 2018.
IRDAI has now withdrawn LTP covers for three-year and five-year terms for new cars and two-wheelers w.e.f, August 1, 2020.
Click here to read the Notification.
