Long term motor insurance contracts banned in India

The market’s supervisory authorities (IRDAI) is prohibiting insurers from underwriting motor insurance contracts with a term of three years for new vehicles and five years for new two-wheelers.

This decision is to enter into force on 1 August 2020. For the record, both long term motor third party liability insurance and own damage insurance were introduced in September 2018, following a decision of the Supreme Court.