What comes as a respite for the two-wheeler owners in the country is the new regulation laid down by Insurance Regulatory and Development Authority (IRDA). According to this rule, two wheeler owners will not have to get their insurance policies every year. Instead of this rule, the owners will have to get the paperwork redone, once every three years. There has been a growing trend among newer riders, where they forget to get the insurance renewed every year. IRDA has come up with this decision just to make things a bit easier for two-wheeler owners. Now, this rule will cover a span of three years on the basis of the third party liability.
In a survey, it was found out that the number of non-insured bikes on the road was quite high, recently. Most of the bike-owners, who had non-insured bikes were questioned and it was found out that the most important reason behind this thing, was the yearly renewal program. Most owners confessed that the yearly renewal policy was a bit painful and it often slipped out of their minds. In a bid to reduce the number of non-insured bikes in India, the IRDA has come up with this solution. Once the bikes are insured, they will be valid for three years, thus making sure that lesser bikes are non-insured on Indian roads. On the other hand, it will also make sure that the expenditure of policy maintaining is also reduced.
According to the motor law prevalent in the country, it is necessary to make a third party insurance since it covers the liability of the third party in case of any mishap. IRDA has also proposed that the total amount to be paid during the three year tenure will be three times that of the one year premium. However, once applied, this cannot be revised under any circumstances. Otherwise, all other rules and regulations are similarly applicable to the three-year structure. This rule will encourage riders to get their bikes insured at the earliest. Also, this will be a one-time expenditure, after which, they can be free of worries for three years.
