SC order to bring down gap between vehicle ownership and insurance

The problem at the moment is that insurers have to rethink the structure of their products

A Supreme Court order makes it mandatory for car owners to have an extended third-party (TP) insurance of two years from September 1; owners of two-wheelers have to buy a five-year term policy. The Mother Vehicles Act and the Insurance Regulatory and Development Authority of India (Irdai) have made motor TP insurance mandatory. This cover provides security in case a bystander is injured or dies in a road mishap or if a vehicle owned by other party is damaged. The policy provides the policyholder with a sum assured in case they injure a third party; also, the sum