1st September 2018 saw the implementation of long-term third-party liability-only policies of three years for cars and five years for bikes. The ruling of the Supreme Court and its implementation by IRDAI through its circular have helped in creating a completely and totally beneficial scenario for all the parties involved. The government would be benefited with having more insurance-compliant vehicles running on the roads. That too right from the day when they hit the streets and for a longer period of time. The insurers would, in turn, have a lower lapsation ratio as the policy issued will be for a long term. The owner of vehicles would be benefited by having fixed premium rates for a long time. They would also be liberated from their duty of timely yearly renewals. It is, thus, a win-win situation for all the parties involved. \u201cThe only thorn in the customer\u2019s side would be a high outflow of premiums right at the start of buying a vehicle. That is not all. The customers who go for a vehicle with a larger engine will pay more vice versa those who buy a vehicle with smaller engines, be it a car or a bike,\u201d says Devendra Rane, Founder & CTO, Coverfox.com. The premiums rates for long-term third-party liability-only car and bike policies can be instantly glanced at in the below table: Car Engine Capacity Current 1 Year Plan (Rs) New Long-Term Plan (Rs) Multiplier Not exceeding 1000 cc 1850 5286 2.86 Between 1000 cc and 1500 cc 2863 9534 3.33 Higher than 1500 cc 7890 24305 3.08 Bike Engine Capacity Current 1 Year Plan (Rs) New Long-Term Plan (Rs) Multiplier Not exceeding 75 cc 427 1045 2.45 Between 75 cc and 150 cc 720 3285 4.56 Between 150 cc and 350 cc 985 5453 5.54 Higher than 350 cc 2323 13034 5.61 The higher third-party premiums rates will in turn also raise the premium rates for comprehensive plans. In short, the total premium outflow will see a significant increase. A word of caution for the new vehicle owners, however, would be not to blindly accept what is put forward to them by the vehicle dealer. \u201cThe vehicle dealers might try to corner vehicle owners into accepting motor insurance policies from them only. They might lead owners into misinterpreting the apex court ruling and IRDAI guidelines and in turn create a monopolistic market for themselves. A probable reason which might entice the dealers in indulging into such practice could be higher commissions and monetary benefits offered by certain insurers,\u201d says Rane. You should, therefore, always compare various plans to find out whether the plan offered is the best one or there are even better and pocket-friendly options available in the open market. You must log on to online portals and compare the insurance quotes offered by the vehicle dealer with other similar plans being offered by various insurers. You should thoroughly evaluate the options and the add-ons available with the base plan. You should then buy a plan which is a perfect balance of all-around coverage and pocket friendliness. Taking a well-informed decision is your right and you should not let others influence you into blindly accepting what is being offered.