With the end of Lok Sabha election voting, the Insurance Regulatory and Development Authority (IRDAI) has proposed to make the third party insurance of cars and two-wheelers expensive. According to this proposal, third-party insurance premiums should be increased from existing Rs 1,850 to Rs 2,120 on cars with less than 1,000 cc capacity.
Similarly, the premium for cars falling between 1,000cc and 1,500cc has been proposed to increase to Rs 3,300 from current Rs 2,863. However, in case of luxury cars with a capacity exceeding 1,500cc, no change is proposed in this and it will be kept at current Rs 7,890.
Proposals for two-wheelers
In the new proposal, it is proposed to increase the third party premium from Rs 427 to Rs 482 for a two-wheeler with a capacity of less than 75cc. With this, it has been proposed to increase from 75cc to 350cc but no change has been proposed in the case of superbike over 350cc.
Similarly, in the case of personal use of electric cars and electric two-wheelers, the insurance regulator has proposed a 15% discount in third-party motor insurance premium. While there is a proposal to raise rates in the case of taxi, buses, and trucks too. Apart from this, the premium in the tractor case can also be increased.
At the same time, in the case of new cars, a one-time premium rate of 3 years and a premium rate of 5 years has been proposed for the new two-wheeler.
Generally, the third party's premium rate is generally revised from April 1 but this time the company decided to continue in the old rates. Now the regulator has proposed new rates for third-party premium. At new rates, IRDA has invited suggestions and comments from the concerned parties till May 29.
What is third party insurance?
Under the Motor Vehicles Act, it is necessary for all motor vehicles to take third-party motor insurance or third party insurance cover. There is a first party to insure it. The insurance company is the second party. The third party is the person who is harmed by the insurer. The third party itself claims for damages. Understanding easy language, this insurance policy covers the damage done to your vehicle to other people and their property.