Withdrawal of Package cover for new private cars and new two-wheelers
This has reference to the recent circular Ref no IRDAI/NL/CIR/MOT/143/06/2020 dated 8th June, 2020, issued by IRDAI with regard to Withdrawal of Long Term Package cover offering both Motor Third Party insurance and Own Damage Insurance for three years for private cars and five years for two-wheelers.
Some of the media reports on this may cause confusion to policyholders. Accordingly, the following may be made abundantly clear to agents, intermediaries etc for the benefit of all policyholders.
| Sr. No. |
Product type
|
Existing cover available as per 28th August, 2018 guidelines | Revision in guidelines with effect from 1st August, 2020 |
|---|---|---|---|
| 1. | Motor Third Party only cover | Third Party ( 3 years) for new Private Cars and Third Party (5 years) for new two-wheelers | Will continue to be available |
| 2. | Bundled cover |
Third Party (3 years) + Own Damage (1 year) for new Private Cars and Third Party (5 years) + Own Damage (1 year) for new two-wheelers |
|
| 3. | Own Damage Cover | Own Damage (1 Year) for Private Cars and Two-wheelers for the renewal of Bundled Own Damage portion of cover (subject to existence of validity of third party cover) | |
| 4. | Package Cover | Third Party (3 years) + Own Damage (3 years) for two-wheelers for renewal |
Only the following policy stands withdrawn w.e.f 1st August, 2020.
| 5. | Package cover |
(a) Own Damage (3 years) + Third Party (3 years) package for Private Cars and (b) Own damage (5 years )+ Third Party (5 years) package for two-wheelers |
To be discontinued (no longer available) |
