Third Party Car Insurance Premium will Rise

Automobile insurance in India is an industry that has faced lot of problems over the past few years. The risk exposure of this industry and decrease in profitability has made very tough for insurance companies to operate but as third party insurance cover is set to rise, these companies may find it little easier to operate.

Insurance Regulatory Authority of India has recently announced changes to the third party car insurance clause which is mandatory for every vehicle owner and has increased car insurance premium for this particular clause. The third party car insurance cover is mandatory and controlled by insurance regulator and its tariffs are also controlled by it.

New Premium for Third Party Car Insurance

As per the new tariffs, private car owners would have to pay premium subjected to the size of the vehicles. The hike would be in the range of 6-40 per cent and effective from 01-April, 2013.

Motor third party insurance is obligatory for all working vehicles. So an individual will need to buy this cover even before you can take your car out of the showroom. The policy covers you in case the insured vehicle causes harm to life or property of a third party. The insurance cover is only provided in case of an accident and not if the act is deliberate or with an illegal intent.

An individual can get auto insurance quote from several sources. Auto insurance quote can be obtained through insurance aggregators online which has emerged as most convenient mode of obtaining insurance quotes over the few years.

The quotes can also be obtained via preferred insurance provider website as well. The other modes of obtaining third party car insurance quotes are via direct agents and directly through insurance companies by visiting their premises.

The main difference between both these methods is the ease and convenience offered by online techniques. An individual can buy auto insurance online while sitting at home which helps in further reduction in insurance quotes due to automatic reduction in travel costs and utility costs.

You may also like to Read: Third Party Liability Motor Insurance

Automobile insurance in India must be bought with clear intent of securing yourself against potential risks and accidents and not with intent to fulfill legal obligations. A comprehensive car insurance plan can save you from any financial setback while third party car insurance cover can save you from damages claimed by third party in case your vehicle is involved in an accident.

Written By: PolicyBazaar - Updated: 25 May 2020
You May Also Like
  • Best Car Insurance Companies in India

    Best Car Insurance Companies in India Getting motor insurance is essential for all the car/vehicle owners and drivers in India. It is mandatory to have third party car insurance in India under the Motor Vehicle Act, 1...

    read more
  • Insured Declared Value (IDV)

    Insured Declared Value (IDV) Insured Declared Value (IDV) is the maximum Sum Assured fixed by the insurer which is provided on theft or total loss of vehicle. Basically, IDV is the current market value of the vehicle....

    read more
  • Zero Depreciation Car Insurance

    Zero Depreciation Car Insurance In a zero depreciation policy the insured gets the total cost of the damage or loss that is caused to the insured car. The depreciation value of the replaced or damaged parts is usually...

    read more
  • No Claim Bonus (NCB) in Car Insurance

    No Claim Bonus (NCB) in Car Insurance No Claim Bonus (NCB) is a reward, given by an insurer to a policyholder for making no claims during the policy term. No Claim Bonus can be accumulated as a discount on the premium...

    read more
  • 9 Secrets That Your Motor Insurance Provider Won’t Tell You

    9 Secrets That Your Motor Insurance Provider Won’t Tell You Due to the dangerous driving conditions, it is compulsory to have third party insurance for every vehicle plying on Indian roads. It ensures the overall sa...

    read more
Search
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Calculate your car IDV
IDV of your vehicle
Calculate IDV
Calculate Again

Note: This is your car’s recommended IDV as per IRDAI’s depreciation guidelines.asdfsad However, insurance companies allow you to modify this IDV within a certain range (this range varies from insurer to insurer). Higher the IDV, higher the premium you pay.Read More

Policybazaar lets you compare premium prices from 20+ Insurers!
Compare Prices