IRDA asks companies to issue long-term third party insurance for cars, two-wheelers

The Insurance Regulatory and Development Authority (IRDA) has issued guidelines for longer tenure motor Third Party (TP) policy.

Shaping the Supreme Court (SC) order which had spoken about insuring availability of longer tenure motor third party policies from September 1, the insurance regulator on Tuesday came out with guidelines as far as this new product is concerned.

Essentially the IRDA is saying that the insurers will have to provide the mandatory motor third party policy for cars for a minimum tenure of three years and for two-wheelers with a minimum tenure of five years. Current tenure stands at one year for each of these vehicle segments.