Buying A New Car Or Two-Wheeler To Get Cheaper In India From 1st August.
Planning to buy a new vehicle? Register it after August 1, 2020, with the on-road prices on cars and two-wheelers set to reduce, as IRDAI reverses its decision for mandatory long-term motor vehicle insurance packages.
- 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.