3/5-year term may be made mandatory for motor insurance

3/5-year term may be made mandatory for motor insurance  You may soon have to buy a mandatory three-year third-party insurance for your car. For two-wheelers, the required term could be up to five years.  The Insurance Regulatory and Development Authority of India (IRDAI) is currently working on the modalities, and a decision is likely in a month, according to a senior official. At present, it is mandatory to buy a one-year policy at the time of vehicle purchase, after which it must be renewed every year. The insurance pays for legal liability in case there is injury or damage to a third party or property caused by the use of the vehicle in a public place. Driving a vehicle without the cover is an offence under the Motor Vehicles Act, 1988.  The IRDAI sprung into action after it received a directive from the Supreme Court last year to make a three-to-five-year term mandatory. In January, the regulator had directed all general insurers to sell third-party cover online along with other regular channels.

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