SC Mandates 6-Year Bike Insurance: What You Pay Now

The Supreme Court has told IRDAI to make long-term third-party insurance compulsory — 4 years for new cars and 6 years for new two-wheelers. This raises the upfront cost when you buy a vehicle but protects you from annual renewal hassles and lapses.

Here's what happened: The Supreme Court has directed IRDAI to extend mandatory third-party vehicle insurance to 4 years for new cars and 6 years for new two-wheelers, payable upfront at purchase.. This ruling targets the widespread problem of lapsed insurance on Indian roads, where millions of vehicles go uninsured after the first renewal year is missed.. Third-party insurance rates are IRDAI-regulated and uniform across all insurers, so the multi-year premium cost is fixed and must be shown separately on your vehicle invoice..

What you should do: Ask your dealership to itemise the third-party insurance premium separately on the invoice so you can verify it matches IRDAI's published slab for your vehicle's engine capacity.. Budget for the higher on-road price before visiting the showroom — include the multi-year TP premium in your loan principal calculation if you are financing the purchase.. Check whether your comprehensive (own-damage) policy renewal date aligns with your TP expiry so you are never partially covered without realising it..

Third-party insurance is non-negotiable and non-refundable once issued — but you CAN switch your own-damage cover to a different insurer at renewal for a better deal, even while the TP policy stays with the original provider.

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