The Insurance Regulatory and Development Authority of India (IRDA) has made it mandatory to have a three-year third party insurance for cars, from 1 September. What this means is that on-road prices for cars will be higher if bought on or after 1 September.
Insurance premiums for new cars will depend on the engine capacity (that is cc, or cubic centimetres), cars under the one-litre mark would pay Rs 5,286, 1.0-litre to 1.5-litres would be priced at Rs 9,534, and 1.5-litre and above would fall into the Rs 24,305 category. Regulators have asked insurers to collect the entire three-year premium at the time of sale. Furthermore, the policy cannot be cancelled for the entire term unless in the case of double insurance or sale of the vehicle. The current one-year coverage was expanded to three years after the Supreme Court made a decision about the same. The rules stated are for third-party only, so we have to assume that the details for own damage and comprehensive policies have not been changed.
To know more about four-wheeler insurance and all it encompasses, read our story: (Everything You Need to Know About Car Insurance in India)
Story: Zal Cursetji
