Five-year third party insurance now compulsory for motorcycle owners
The Insurance Regulatory and Development Authority (IRDA) has issued a notice saying that third party insurance cover for a period of five years for two-wheelers, and three years for four-wheelers will now be compulsory beginning September 1. This move comes after the Supreme court passed a ruling to this effect some time ago. The current tenure stands at one year for each of these vehicle segments.
The immediate effect of this move is that the on-road prices of cars and bikes will go up. Two-wheelers will now cost anywhere between Rs 3,000 and Rs 5,000 more to insure while car insurance premiums will now cost between Rs 5,286 for cars less than 1000cc to Rs 24,305 for cars greater than 1,500 cc. Owners of cars having 1,000cc-1,500cc will have to pay Rs 9,534 as premium.
The IRDA is the regulatory body that oversees all insurance and re-insurance activities in the country. Third party insurance cover relates to the damage caused by the vehicle owner to a third party while comprehensive insurance cover relates to the damage suffered by the vehicle owner as well as the third party.