As per the Ministry of Road Transport and Highways draft rate card, car insurance may not change. Any increase in third-party motor premium rates this fiscal year is unlikely to increase your car or bike insurance rates. For 2023–2024, it has been suggested by the Ministry of Road Transport and Highways (MoRTH) to keep the rates the same. Depending on the vehicle’s engine size, rate increases for car and two-wheeler owners last fiscal year ranged from 0.1% to 20.7%.
What Is Motor Vehicle Third-Party Insurance?
A car must have third-party liability insurance when it leaves the showroom and hits the road. It is the legally required portion of your motor insurance coverage.
As the name implies, it protects the policyholder from having to make compensation payments if the vehicle is involved in an accident and causes harm to a third party. Additionally, the insurance may cover any claims and losses your car may have resulted in the assets of such people. Claims are subject to terms and conditions set forth under the motor insurance policy.#
What Factors Determine The Third-Party Liability Premium Rates?
Unlike other insurance coverages, the government and the Insurance Regulatory and Development Authority of India (IRDAI) strictly regulate the premium rates for third-party motor insurance. #
Every year, the road transport ministry releases third-party motor premium rates. After two years without a COVID-related premium increase, it did so in June last year. The type of vehicle and engine size have an impact on the prices. The process of buying car insurance online is a convenient alternative to traditional methods, allowing for a streamlined process and easy access to policy comparisons and information. Claims are subject to terms and conditions set forth under the motor insurance policy.
How Far Along Are This Year’s Premium Revisions?
This time, the road transport ministry has suggested against changing the prices. A conclusion is anticipated any time now.
The third-party premium rate applicable to a private car with an engine capacity of less than 1,000cc may be Rs 2,094, according to the ministry’s draft rate card. The third-party liability premium for two-wheelers with engines ranging in size from 150 to 350 cc may be Rs 1,366.
Can I Decide Not To Purchase Own Damage Component?
Ideally, you should buy car insurance online for the damage coverage your car insurance provides. It is not required by law, in contrast to third-party car insurance.
However, it is essential to your protection plan because it pays for any costs you might have if your car is damaged. Consider rider benefits like engine protection and zero depreciation covers to make your policy more thorough. *
For instance, repairs are required because of damage from mishaps, floods, fires, burglaries, etc. A damage insurance policy compensates for the monetary losses brought on by such occurrences. The scope of coverage, the insurer, the make, the car’s age, the engine size, any accumulated no-claim bonuses, and the engine make all affect the premiums. The car insurance renewal process online is hassle-free and efficient. *
*Standard T&C Apply
#Visit the official website of IRDAI for further details.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.