In a landmark directive aimed at curbing the high number of uninsured vehicles on Indian roads and ensuring timely compensation for road accident victims, the Supreme Court has instructed the Insurance Regulatory and Development Authority of India (IRDAI) to expand mandatory multi-year third-party motor insurance coverage at the time of new vehicle purchase.
What Changed?
- Four-Wheelers (Private Cars): Mandatory bundled third-party cover extended from 3 years to 4 years.
- Two-Wheelers: Mandatory bundled third-party cover extended from 5 years to 6 years.
Impact on Motor Claim Disputes
Longer mandatory coverage reduces policy lapse rejections in third-party liability and own-damage add-on packages. However, motor insurance policyholders still frequently encounter wrongful deductions under depreciation clauses, alleged delay in intimation, or arbitrary 'constructive total loss' assessments—areas where formal grievance representation remains critical.