Tuesday, March 18, 2025 | 06:54 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

Irdai withdraws long-term package covers in motor sector over affordability

Regulator also says insurers are facing issues in offering the product

insurance
Premium

The apex court had directed insurers to offer long term motor third party covers for vehicles plying on the road and had also made it mandatory

Subrata Panda Mumbai
The Insurance regulator on Tuesday withdrew a circular, which asked general insurance companies to provide long-term package covers in the motor segment, offering third-party and own-damage insurance for three and five years to new two wheelers and four wheelers, with effect from August 1, 2020 on grounds that it is creating issues for insurers and also making it unaffordable for some section of vehicle owners.

The Insurance Regulatory and Development Authority (Irdai) after reviewing the performance of long term package covers and following concerns relating to its implementation since its introduction, decided to withdraw these covers.

ALSO READ: 

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in