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Irda Latest News

The Insurance Regulatory and Development Authority of India (IRDAI) on Monday officially released a circular mentioning the withdrawal of long-term motor insurance package plans including 3rd party insurance as well as own damage. This will come into effect from August 1, 2020. The insurance regulator decided to withdraw the long-term insurance package policy after noticing several issues and concerns related to the performance of these policies. Some of the reasons that compelled the body to take this step are challenges in actuarial pricing for long term own damage policies, distribution of polices is difficult, an expensive proposition, and a possibility of owners selling their vehicles due to financial reasons or default in loans.

IRDAI Withdraws Long-Term Motor Vehicle Insurance Package Cover For New Cars & Two-Wheelers

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