• IRDAI withdrew packages after finding concerns over policy’s performance
• Customers would be stuck with the same insurer in case of poor service
• Cars & bikes will still need to have 3-year and 5-year third party cover

Buying a new car or a two-wheeler is all set to get slightly more affordable from August 1, 2020. The on-road prices for new vehicles will see a marginal reduction as a result of the Insurance Regulatory and Development Authority of India (IRDAI) withdrawing its long-term insurance package plans. The rule mandating long-term motor vehicle insurance for three or five years has been done away with, and the industry is now back to the mandatory one-year, own-damage insurance cover that is necessary when purchasing a new vehicle. With the rollback, the customer does not have an option to purchase a long-term own-damage policy even if they wanted to. That said, new vehicle owners need to buy a comprehensive cover for one year, while third-party insurance is still mandatory for three and five years for car and two-wheelers respectively.