New vehicle owners will have to buy these insurance covers as long-term motor policy will go from Aug 1

If you buy a vehicle in August or later, you will be able to switch between insurers annually.

Synopsis

Customers buying new vehicles will likely have to mandatorily buy a 3- or 5-year long-term 3rd-party motor insurance for cars and two-wheelers, respectively. They also have the option to buy a standalone annual OD policy separately from any insurer.

The mandatory long-term comprehensive motor insurance which covers damage to the vehicle and damages (or losses) caused to a third-party person, for three years for cars and five years for two-wheelers, will be scrapped from August 1, 2020.This move will help new vehicle buyers as they will not have to pay a huge premium cost upfront at the time of buying a new vehicle.Pankaj Arora, MD and CEO, Raheja QBE General Insurance said, "Currently, the
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ET Online
8 mins read, Last Updated:
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