Explore Business Standard
The new motor insurance regulations to take effect from Saturday would, fear officials at automobile companies, impel those wishing to buy cars or two-wheelers to postpone purchasing.Car dealers have been flooded with calls from buyers who had booked new vehicles in the past fortnight. The new regulation mandates buyers of cars and two-wheelers to purchase upfront insurance cover for at least three and five years, respectively. On August 20, the Supreme Court directed insurers to offer long-term third-party covers. Insurance is mandatory for all road-worthy vehicles in India but owners tend to skip renewing the policies after these lapse. A longer tenure and upfront payment of the premium would save buyers the trouble of annual renewals but would proportionately raise the initial outgo on new vehicles, pushing up the on-road prices."There is a lot of confusion in the market," said a Maruti Suzuki India dealer. "This is being done without any prior intimation. Customers who booked a ...