IRDAI claries that long term motor product shall be offered only to new private cars and new two-wheelers

Jul 12, 2019 | by Avantis RegTech Legal Research Team


Insurance Regulatory and Development Authority of India (IRDAI) on July 07, 2019, has issued a Circular in order to give clarification regarding implementation of the Directions of the Hon’ble Supreme Court of India where all general Insurers shall offer three-year Motor Third Party Insurance cover for new cars and five-year Motor Third Party Insurance policies for new two-wheelers.

It has been clarified that long term motor product shall be offered only to new private cars and new two-wheelers. These products shall not be offered for renewal of existing policies or for old vehicles. Whereas, the long term two wheeler insurance policy being issued for three years may continue to be offered for renewal.

[Circular No: IRDAI/NL/CIR/MOT/112/07/2019]


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