30 August 2018 by Gagan Modi
IRDA Extends 3rd Party Motor Insurance for 3 Year for Cars and 4 Years for 2 Wheeler effective September 2018
IRDA has implemented a Circular stating that 3rd Part Motor Insurance Policy as issued from 1st September now extended for
» 3 Years for Cars
» 5 Years for Two Wheeler
While the Consumer has to pay One shot Single Premium for 3 Years (Cars) / 5 Year (2 Wheeler) the Premium would be recognized on Yearly Basis by Insurance Company. It means 1/3rd of Premium in Cars and 1/5th would be treated as Yearly Premium as Income of Insurance Company and rest as Advance Premium
Also - there are Guidelines referred for Cancellation of Insurance Premium where only in event of Vehicle Sold and Transferred or Total Loss or in cases where Vehicle Owner has double Insurance of the same vehicle by error can be cancelled,
Below is the Premium Chart for Long Term 3rd Party Motor Insurance effective September 2018 and applicable till March 2019
|Car Engine Capacity||3 Year Premium|
|Engine Under 1 Litre||Rs 5286|
|> 1 Litre but < 1.5 Litre||Rs 9234|
|> 1.5 Litre||Rs 24305|
|2 Wheeler Engine||5 Year Premium|
|< 75 cc||Rs 1045|
|> 75 cc but < 150 cc||Rs 3285|
|> 150 cc but < 350 cc||Rs 5453|
|> 350 cc||Rs 13034|
Additional would be 18% GST as applicable
For Exact Circular of IRDA - refer Download IRDA Circular
In terms of Policy Issuance - other than Offline Mode as Cheque Payment, even the Online channels would be offering in Long Term 3rd Party Motor Insurance. Now for Buyers considering in Comprehensive Policy can even get in Long term Insurance Cover as its referred clearly
1. Long-term Package cover offering both Motor Third Party Insurance and Own Damage insurance for three years or five years as the case may be. Also - No Claim Bonus would be applicable on OD Component only.
2. A bundled cover with a three-year or five-year term ( as applicable ) for the third party component and a one-year term for the Own Damage.
The stated Changes are Effective from 1st September 2018 in India.