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New IRDAI Rule: About a year ago, the Insurance Regulatory and Development Authority of India (IRDAI) asked insurance companies to offer long term insurance policies for new cars and two-wheelers purchased on or after September 1, 2018. From September 1, 2019, these guidelines are being exempted. Praveen Chaudhary, Head, Motor Insurance, PolicyBazaar.com, said that ""Till now customers had to buy a third-party component as well as an On Damage (OD) policy from the same insurer. But now customers can take OD cover separately from any general insurance company.

The new IRDA circular states, 'Insurance companies will have to separately offer a policy on annual and damage cover for new and old cars and two-wheelers from September 1, 2019. In this, loss of fire and theft can also be covered at the behest of the policyholder. Insurance companies will also have the option to offer a package policy along with their own damage cover and third party insurance policy. At present, companies will not be allowed to issue an insurance policy on their personal damage for an extended period. The policyholders will also have the option to renew only part of their cost out of the system covering all the risk outright. This facility will always be available on or after September 1, 2019. This renewal can also be done from the same insurance company or other insurance company. '

But, what if have you already purchased the bundle plan and now want to renew only the OD cover from that bundle policy from another insurer? After the implementation of the new rule, it will be possible to do so from September 1, 2019. You can renew OD cover from the same insurer or any other insurer of your choice. Chaudhary says that "This is very beneficial for customers who already have a bundled policy as it will allow customers to choose from different options." Explain that the TP component is available for 3 years for a car, and TP for 5-wheelers is for 5 years.

Taking third party insurance will be compulsory even further. But from September 1, 2019, policyholders who own cars and bikes will have these three options:

1.Multi-Year Long Term Comprehensive Policy

One for the long term, one bundle policy provides for TP and OD coverage for car (3 + 3) years and for TP and OD coverage for bike (5 + 5) years.
Here the premium is also collected for 3 or 5 years, and the policy also has to be renewed only after 3 or 5 years, when the system is about to expire.

2. Bundle Policy

But, what if a person wants to pay OD premium for only one year and renew it next year? In such a case, he can choose a bundled policy in which, ""TP coverage is for 3 or 5 years, but OD cover is applicable only for 1 year. You can select (1 + 3) for car and (1 + 5) policy for two-wheeler. Here, the OD premium has to be renewed every year against the TP cover. TP cover can be replaced only after 3 or 5 years.

3. Only take OD cover

According to the new rule of IRDAI, now you can take OD cover have from any insured. ""The bundle policy (3 + 3) and (5 + 5) customers were considered expensive. Therefore, most customers opted for the (1 + 3) or (1 + 5) option, but somehow to renew the OD policy There was no explanation. With the new regulation, customers can now buy OD policy separately from any insurer.