Soon shell out more towards car insurance
Posted on: 25/Jul/2018 5:58:19 PM
Starting from first September 2018, you will have to shell out a little extra towards your car insurance. According to Supreme Court orders, it will not be possible to sell out vehicles with 3-year third party insurance policy starting from the aforementioned date. This will lead to increase in pricing.
This sudden change in law is because buyers are not abiding by the law in renewing their insurance policies after first time and leave it with the third party cover alone. According to a latest report, out of the total number of 18 crore registered vehicles in India, 6 crore of them do not hold a valid insurance cover.
With the third-party insurance cover, party except driver or passenger who is an accident victim will be covered in the policy. This causes the situation an alarming one and makes the third party insurance cover vulnerable and does not allow obtaining compensation during mishaps.
As of now, in the Swift segment, the insurance premium for a third party cover will be Rs 2863, be it new or old. At the time of buying car, the upfront payment you will have to make towards third party insurance will be Rs 5700.
With a brand new Swift car of top petrol engine variant, the premium will be Rs 10000. This is 50 percent higher than the existing rates.
It is unclear whether the insurance companies will include the three year third party insurance along with the first year insurance or make it separate. Insurance companies will also start rolling out three year insurance cover which will result in substantial increase in car rates while it means you need not pay towards insurance in the following two years.
