Explanation:

Correct answer is (b). Statement I That the Supreme Court has made it clear that only long term motor insurance policies will be there in India will make all the insurance companies issue such policies.
This is correct since both the sentences are connected meaningfully.
Statement II As the Supreme Court has made it clear that only long term motor insurance policies will be there in India, it will make all the insurance companies issue policies for long term.
This is correct since the combined sentence makes a meaningful and contextually correct statement.
Statement III is not correct because the sentence connector used is ‘yet’ which implies in spite of something. It is not fit for the given context as here the insurance companies are going to abide by the Supreme Court ruling and there is no space for neglecting the same on the part of the insurance companies. Hence, only I and II make meaningful and contextually correct sentence when combined.
This makes option B the correct choice among the given options