Two wheeler buyers often forget to renew their insurance policies each year and this three year policy will ensure that there are less uninsured bikes on the road. IRDA has announced this three year insurance cover and has initiated insurance companies to come up with long term motor policies while similar policies for cars and commercial vehicles could also be seen in the future.
Three year policy will not only reduce costs of issuing of policies but could also take care of the yearly hassle of renewal while leading to lower premiums as insurers could share in cost savings benefits from Insurance companies.
Motor law in the country makes third party insurance mandatory as it covers the liability of a third party in the event of an accident. IRDA has devised that the total premium for third party insurance will be thrice the annual premium while this cannot be revised during the three year period under any circumstances. All other terms and conditions applicable as on date for one year insurance will be carried forward for the three year insurance term.
via Times of India