MUMBAI: Buyers of new vehicles will have to shell out more money from Saturday.
The insurance regulator has made it mandatory for companies to offer only three-year policies for new cars and five-year policies for new two-wheelers with effect from September 1, 2018.
The good news for buyers of small cars (below 1,000cc) and two-wheelers (below 75cc) is that they will be able to lock in long-term policies at cheaper prices and avoid the annual increase in third-party premium that happens every financial year.
Insurers were hoping to buy some more time on the grounds that they were not ready with their long-term products and were planning to approach the SC for relief.
However, IRDAI has forced their hand by asking them to start selling policies at rates announced by the regulator.