All new cars and bikes that are sold by dealers from 1st September 2018 will have 3 years and 5 years third party insurance as per the Order of the Honourable Supreme Court of India.
That is, a new car sold on 1st September 2018 will have third party (TP) insurance coverage up to 31st August 2021 and a new bike up to 31st August 2023.
Car/Bike Insurance Policies with 1 year OD and 3/5 Years TP Covers
After the court order, Insurance Companies quickly devised car/bike insurances with 1-year Own Damage (OD) cover and 3/5 years TP cover.
For these insurance policies, OD cover will expire in 1 year but the TP insurance will be available for 3/5 years.
The ‘OD only’ renewal will allow you to renew the Own Damage Insurance alone every year.
Obviously, ‘OD only’ renewal will be applicable only for those vehicles, which are sold and registered after 1st September 2018.