Traditionally, the validity for any kind of motor insurance has been for a period of one year from the date of policy issuance. However, in July 2018, the Supreme Court mandated that all new motor insurance policies will compulsorily cover third-party liability for a period of three years.
Which insurance is mandatory for car in India?
Third Party Liability
Is it compulsory to buy 5 years insurance?
Following a Supreme Court ruling in September 2018, IRDAI has made it mandatory for all new two-wheelers to be issued a 5-year insurance cover. This has been done to ensure that maximum number of two-wheelers remain insured and also to minimise incidents of lapsed, expired policies and uninsured vehicles.5 Jan 2022
Which insurance is mandatory for new car?
While having a comprehensive insurance policy is optional; having a third-party vehicle insurance policy is mandatory. Note- The policyholder can opt for additional riders and avail customized insurance coverage.
Can I drive a car without insurance if I just bought it?
It's illegal to drive a car without the minimum of liability insurance, so even if you're purchasing from a private person, you risk being pulled over and fined if you're caught without liability coverage. The dealer can fax them your newly purchased car information after the purchase in order to get you coverage.15 Dec 2021
How long after you buy a car do you need insurance?
According to WalletHub, this grace period is usually from seven to 30 days and varies from one provider to the next. It is important to note that even if you do have a grace period, this only includes the level of coverage you had on your previous vehicle.27 Apr 2021
Do you insure a car before or after you buy it?
It is usually best to buy car insurance before you get your new vehicle. If you already have car insurance for another vehicle, you may not yet have to buy another plan. Most insurance companies offer a short grace period in which your new car is covered.27 Apr 2021
Does car insurance change when you get a new car?
The truth is, your current insurance policy will cover your new car the second you drive it off the lot—typically at the same level of coverage as your old car. But if you don't carry liability or physical damage protection, you may end up stuck at the dealership, or worse, in violation of the law.
Is 3rd party insurance compulsory for 3 years?
Usually, third-party vehicle insurance, which is compulsory for all vehicle owners in India, is issued for one-year. IRDAI allowed insurer to offer 3-year third-party insurance for cars and 5-year third-party insurance for two wheelers. This type of policy is termed as standalone long-term third-party insurance policy.3 Jul 2019
Is two-wheeler insurance mandatory?
Following a Supreme Court ruling in September 2018, IRDAI has made it mandatory for all new two-wheelers to be issued a 5-year insurance cover. Having third-party insurance is anyway compulsory for all vehicles as per the Motor Vehicles Act, 1988.5 Jan 2022