One of the biggest hassles for two wheeler owners is the need to insure their bikes annually. But it looks like this is in for a change. The IRDA (Insurance Regulatory and Development Authority) has announced that the insurance period for all two wheeler will soon be revised to three years, rather than the customary one year period that is being followed nowadays.
The IRDA has asked all insurance companies to come up with new insurance schemes and plans for two-wheeler owners that will cover insurance on a long term basis. When implemented, this will reduce the cost of issuing policies and free the owner from making annual visits to the insurance firm. Also, it will facilitate the firms in collecting premium in one go.
However, the policy does not exempt the user from yearly renewal in case of own-damage cover. This is with regard to any damages that the vehicle may undergo in an accident. The other clauses include no revision in premium during the period of policy, no cancellation of standalone TP (third party) cover, except in case of total loss where premium for the full unexpired years have to be refunded.
This move might soon be extended to four wheelers and commercial vehicles as well.
Source – Economic Times