? Cool Title, but what’s the news?
Buying a car or two-wheeler is set to become expensive from Saturday as long-term third party insurance policy has been made mandatory by the IRDAI following a Supreme Court order.
? Okay, but what does it mean?
As per the court order, it is mandatory for all general insurance companies to issue a three-year third party insurance cover for new cars and five-year third party (TP) insurance cover for new two-wheelers as a separate product or as part of a comprehensive insurance product. Irdai was directed to implement the decision on policies sold from September 1, 2018.
? Why should I care?
The three-year third-party insurance will cost Rs 5,286 for cars with engine capacity of less than 1,000 cc, Rs 9,534 (1,000 – 1,500 cc) and Rs 24,305 for cars with engine capacity of 1,500 cc and more. In case of two-wheelers, the five year-third party insurance will cost Rs 1,045 for vehicles with engine capacity below 75 cc, Rs 3,285 (75-150 cc), Rs 5,453 (150-350 cc) and Rs 13,034 (exceeding 350 cc). As per the Motor Vehicles Act, third-party insurance is mandatory.
Source: Economic Times