The third party car insurance would cost more this yearThe mandatory third party liability car insurance plan will now cost more. The insurance protection cover for car owners will cost a little higher from this year. The Indian government has announced this hike recently.
By: www.insuranceexperts.in BANGALORE, India - May 4, 2013 - PRLog -- Government of India has proposed about 85 per cent hike in insurance premium for motor vehicles. This will be applicable for vehicles less than 1000 cc motors. The third party Motor Insurance is now all set to get costlier soon. This is with respect to the endorsement by the Insurance Regulatory and Development Authority (IRDA). It has proposed a considerable hike in the premium payable. The recent revision in premium price will soon hit the entry-level segment for cars with engines below 1000 cc. This is known to be the hardest on because the increase in the cover was initially proposed as 85 per cent.
The 1,000 - 1,500 cc car segment will soon experience the minimum increase. This is amounts only 1.4 percent. Now the vehicles over 1,500 cc segment will experience an increase of about 43 per cent in premium. “The maximum increase has also been recommended for the entry-level segment. This is because the increase of incidences related to accidents is very high. The first time motor drivers were more involved in the mishaps” confirmed Insurance Experts. Third party car insurance plan is different from own damage insurance. This is because it is mandatory for all vehicles regardless of the nature of usage (private or commercial). The plan actually covers claims of third party victims. “This recent hike proposed by the government of India is a step towards increase in accidents on road and number of claims made by insurance buyers. This has led to losses to the Car Insurance industry. Hence, to overcome the losses, the insurance regulatory in India has decided to increase premium for third party insurance (the mandatory plan)” confirmed Insurance Experts. Higher premiums will definitely cover losses in the car insurance segment in India. According to some sources, a sharp increase in personal damage insurance will also be announced soon. Contact Details: Bangalore, 560002, devikapandit19@ End
Page Updated Last on: May 04, 2013
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