SC : Make Long-term insurance for Cars and Bikes mandatory

According media reports, the Supreme Court committee has asked the IRDAI to offer 3-year and 5-year insurance covers for Cars and Bikes respectively mandatory at the time of Sale and Registration. Self damage and other insurance covers are still optional, except Third party insurance.

IRDAI had asked the insurance companies to prepare long-term 3rd party insurance covers for both the 2-wheelers and Cars in May 2018. As per reports, at a recent meeting between the IRDAI and SC panel, the IRDAI representatives had told that they had allowed 3-year Insurance covers for 2-wheelers, but the SC panel mandated the insurance policy, as it was of the view that making long term insurance as an option will not work.

Reports reveal that, out of the 18 crore vehicles on road, only 6.5–7 crore vehicles had insurance cover. Around 50 % of the vehicles on road, in India do not have a valid insurance, with 2-wheelers being the majority of them.

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