SC: Long-term insurance must for cars, bikes at time of sale

The Supreme Court of India has asked the Insurance Regulatory Development Authority of India (IRDAI) to offer 3-year and 5-year insurance policies for cars and 2-wheelers respectively. These will be mandatory and will be offered at the time of sale and registration.

According to a media report, IRDAI representatives have told the Supreme Court panel that it had allowed 3-year insurance plans for 2-wheelers. However, the panel said that instead of offering long-term policies as an option, they should be made compulsory. In May 2018, it was reported that the IRDAI had asked insurance companies to formulate long-term third party policies for cars and 2-wheelers.

Reports suggest that out of 18 crore vehicles plying on the roads in India, only 6.5-7 crore vehicles have a valid insurance. It is said that almost 50% of the vehicles playing on Indian roads don't have a valid insurance, with a majority of them being 2-wheelers.

Source: Economic Times