Car or two-wheeler is set to become costlier from September 1 as long-term third-party insurance policy has been made mandatory by IRDAI following a Supreme Court order.
The Supreme Court‘s orders came on July 20. All general insurance companies must issue a three-year third-party insurance cover for new cars and a five-year cover for new two-wheelers.
From September 1, third-party insurance is mandatory as per the motor vehicles act. 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).
Currently, in the motor segment, there are two types of policies – (1)stand-alone Motor Third Party policy and (2) Motor Package Insurance policy for 2-wheelers and private cars.