Third party insurance coverage for vehicles up by 50 percent
Posted on: 08/Mar/2017 5:59:18 PM
IRDAI (Indian Regulatory And Development Authority of India) has recommended increasing the premium paid for the cars, bikes, and commercial vehicles from 1st April by 50 percent.
Generally, the life of the vehicle insurance coverage is 1 year. So, it has to be renewed every year.
The insurance to cover third persons or things such the person coming in the opposite direction or the damage/loss of items is known as 3rd party insurance.
The vehicle insurance coverage is strongly recommended for all running vehicles.
IRDAI has been revising the 3rd party insurance coverage every year. Accordingly, it has been revised for the year 2017.
However, vehicles below 1000 cc capacity such as Maruti Alto, Tata Nano, and Datsun Redigo are exempted from this revision of 3rd person coverage.
Similarly, 2-wheelers having less than 75 cc capacity have also been exempted from this increase on 3rd party coverage.
At the same time, it has been recommended to increase the premium on 3rd party coverage for vehicles under the category of sports and super-bikes by 50 percent.
Old cars have been given a 25 percent concession on the 3rd party premium. The stamp of the old car is endorsed by the Ancient and Classic Car Club of India.
IRDAI has also asked for the feedback and suggestions from the customers before 18th March regarding this proposal to increase the 3rd party premium by 50 percent.
