TIMESOFINDIA.COM | Updated: Jul 28, 2020, 13:30 IST

NEW DELHI: Insurance Regulatory and Development Authority of India (IRDAI) issued a notice on long-term insurance package policies, which is likely to bring down the on-road price of the cars from August.
The notice orders insurance companies to stop selling long-term vehicle insurance package policies to new vehicle owners. The new rule, which comes into effect from August 1, will effectively reduce the on-road price of new cars and two-wheelers.
From August 1 onwards, instead of previous three/five years insurance, the customer will now have to have to compulsorily third-party insurance, for longer terms.
For car buyers, a third-party car insurance policy for three years has been made compulsory, while for new two-wheeler buyers, a five-year third-party two-wheeler insurance policy has been made mandatory.

NEW DELHI: Insurance Regulatory and Development Authority of India (IRDAI) issued a notice on long-term insurance package policies, which is likely to bring down the on-road price of the cars from August.
The notice orders insurance companies to stop selling long-term vehicle insurance package policies to new vehicle owners. The new rule, which comes into effect from August 1, will effectively reduce the on-road price of new cars and two-wheelers.
From August 1 onwards, instead of previous three/five years insurance, the customer will now have to have to compulsorily third-party insurance, for longer terms.
For car buyers, a third-party car insurance policy for three years has been made compulsory, while for new two-wheeler buyers, a five-year third-party two-wheeler insurance policy has been made mandatory.

A customer can get a bundle of the insurances-a mix of third-party insurance, self-damage, or simply buy stand-alone own-damage vehicle insurance.
The notice is likely to add wind to the sail, as carmakers have been urging for policies and reliefs to spur demand.