Vehicle buyers brace yourself as you will have to pay around Rs 24,000 for new cars and over Rs 13,000 for new motorcycles as part of third-party insurance. Acting on Supreme Court’s order, the insurance companies will now offer only three-year insurance for cars and five-year insurance for two-wheelers under the third party segment from next month.
The Supreme Court has ordered all general insurers to offer long-term third party insurance on vehicles sold on or after September 1. The Insurance Regulatory and Development Authority of India (IRDAI), has asked all general insurers in a circular to implement the changes in third party insurance cover as mandated by the Supreme Court.
According to businesstoday.com, from September 1, insurance companies will offer either long-term package cover offering both third-party insurance and own damage insurance for three or five years, as the case may be, or a bundled cover with three-year or five-year term for the third party component and a one-year term for own damage.
The new rates for third-party insurance will be applicable for vehicles purchased between September 1, 2018, and March 31, 2019. In July, the apex court passed an order making it compulsory for new two-wheelers to have five-year long third-party motor insurance and for new cars to have three-year long third-party insurance.