In a blow to car owners, motor insurance to become expensive from Sept 1

Insurers are still seeking clarity if new rules on third-party insurance will apply to existing vehicle owners

Motor insurance covers will become more expensive, as the Insurance Regulatory and Development Authority of India (IRDAI) instructed insurers to begin selling ‘long-term’ motor third-party (TP) policies from September 1 onwards. On July 20, the Supreme Court, in a move to provide a larger security cover for Motor TP liabilities, ordered that new car owners purchase a three-year TP cover, and new two-wheeler owners purchase a five-year TP policy.

Motor TP policies provide the vehicle owner with a security cover in case an accident results in the loss of life or injury of a third-party, which could mean property like vehicles,