New Delhi29 minutes ago
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Third party insurance of the vehicle can be expensive. According to media reports, Insurance Regulatory and Development Authority of India (IRDAI) has suggested the government to increase third party insurance premium.
IRDAI has suggested to increase average by an average of 18% premium, while the increase in some vehicles can range from 20% to 25%. Now the final decision on this proposal will be taken by the Ministry of Road Transport and Highways. This can be decided in 2 to 3 weeks.
After the approval of the Ministry, a draft notification will be issued for public consent. After this, other procedures such as suggestions will be taken and reviewed, only then these changes will apply. The premium of this insurance has not been changed for the last three years.
How much of two wheelers will increase third party insurance premium
| Engine capacity | Now insurance premium | After 18% increase | Difference |
| Up to 75cc | 538 rupees | 635 rupees | 97 rupees |
| 75 to 150cc | 752 rupees | 887 rupees | 135 rupees |
| 150 to 350cc | 1,366 rupees | 1,612 rupees | 246 rupees |
| More than 350cc | 2,804 rupees | Rs 3,309 | 505 rupees |
How much will the third party insurance premium be increased
| Engine capacity | Now insurance premium | After 18% increase | Difference |
| 1000cc | 2,094 rupees | 2,471 rupees | 377 rupees |
| 1000 to 1500cc | Rs 3,416 | 4,270 rupees | 615 rupees |
| More than 1500cc | 7897 rupees | 9,871 rupees | 1,421 rupees |
Note: This calculation is estimated.
Now understand what is third party insurance?
Third party insurance is a type of vehicle insurance, which is mandatory for every vehicle owner under the Motor Vehicles Act in India. Understand this in easy language:
Meaning of third party insurance: This insurance compensates for the loss to a third person (eg passer by a passer, another driver, or their property) from your vehicle. It does not cover the loss of you or your vehicle, but gives protection to others.
Understand from the example: Suppose your car causes someone else’s vehicle to get spoiled in an accident, or someone gets hurt, or his property is damaged. In such a situation, third party insurance compensates for that loss, such as repair expenses or medical bills.
What is the cover in this?
- Compensation on injury or death to a third person (up to ₹ 7.5 lakh).
- Compensation for the property of the third person (eg second vehicle, shop, or house).
Why is third party insurance necessary?
- This is legally compulsory. Driving without third party insurance is illegal, and can be fined or legal action.
- This protects you from financial burden, if your mistake causes harm to someone else, then the insurance company compensates for it.
What does it not cover?
- Loss of your own vehicle (for this you have to take comprehensive insurance).
- Your own injury or medical expenses.
