In India,half of the two-wheeler owners don’t take insurance policy,which seems to be hazardous for both the insurers as well as the insurance companies.Also,the other half,have an extra afford of renewing their policy every year.Insurance Regulator and Development Authority of India (IRDA) has revealed an proposal that owners of two wheelers can now avail insurance policy for a term of three years at one shot under the following conditions.They are as follows,
- The total premium charged for the above coverage shall be 3 times of the annual TP premium for two wheelers as prescribed by the Authority from time to time
- The above premium shall not be revised upwards or downwards during the period of policy in any circumstances
- The entire Premium shall be paid in one instalment subject to compliance of Section 64 VB of Insurance Act 1938
- Insurers will not be able to cancel the standalone TP cover in any circumstances except in case of Total Loss
- In case of cancellation of policy under total loss premiums for the full unexpired years have to be refunded
- There will be no change in other terms and conditions as are in vogue in respect of 1 year product
- Insurers desirous of offering this cover may submit the letter of intent according to the above conditions
- The above letter of intent will be treated as submission under F&U guidelines in respect of the above
Further K K Mishra, MD and CEO of Tata AIG stated that IRDA may extend it to other vehicles also in due course of time”.The revised guidelines issued by insurance regulator allow general insurance companies to offer third party (TP) insurance for two-wheelers for a term of three years at one shot. Putting forward with some restrictions,IRDA has also said that insurance companies will not be allowed to cancel the standalone TP cover in any circumstances except in case of total loss.