IRDAI Update Irda has proposed to provide insurance cover of 3 years for cars and 5 years for two wheelers, as well as the goal of ‘insurance for all’ can be achieved by 2047 in the country.
IRDAI Insurance Cover Proposal: If you use Two Wheeler or Four Wheeler, then you must read this news. The insurance sector regulator IRDA (Insurance Regulatory and Development Authority -IRDAI) on Wednesday proposed to provide 3 years insurance policy for cars and 5 years for bikes. It aims to increase the spread of insurance in the country and achieve the goal of ‘Insurance for All’ by 2047. Along with this, better facilities have to be provided to all insurance customers by giving them a variety of options.
IRDA made a plan
The Insurance Regulatory and Development Authority of India (IRDAI) has prepared a plan for a long term motor product that provides cover for both ‘Motor Third Party Insurance’ and ‘Self Damage Insurance’. The new draft proposes to allow all general insurers to offer co-terminus with a 3-year insurance policy for private cars and 5-year motor third party cover for two-wheelers.
What is the whole matter
Insurance companies were asked by IRDAI to offer long-term insurance policies for new cars and two-wheelers purchased on or after September 1, 2018. But from September 1, 2019, those guidelines were relaxed. At that time it was said that this rule would apply only to new private vehicles (New Private Cars and New Two-wheelers). Will not be applicable on renewal of existing policies or for old vehicles.
irda reformed
In this case, the insurance regulator IRDAI had approved several reforms on 25 November. This included easing of entry rules for insurance business and reduction in ‘solvency margin’. The insurance regulator in its board meeting had allowed private equity funds to invest directly in insurance companies.
IRDAI says that any entity that invests up to 25 per cent of the paid-up capital and collectively up to 50 per cent of all investors, will be considered an ‘investor’ in insurance companies. The one who invests more than this will be considered as ‘originator’. Earlier this limit was up to 10 per cent for individual investors and 25 per cent for all investors collectively.
