Government to Fix Third-party Insurance Premium For All Category of Vehicles

The Ministry of Road Transport and Highways in consultation with the Insurance Regulatory and Development Authority of India (IRDA) will notify all the motor vehicle owners with the revised third-party insurance premium rate.

With the amendment in the Motor Vehicles Act, with either the demise or any bodily injury to a person the central government will direct a base premium and the liability of an insurer concerning such premium for an insurance plan. Presently, the premium amount for different category of motor vehicles is notified by the IRDA.

This has been done to secure the interest of the policyholders. Besides, earlier the IRDA every year use to increase the third-premium rate abruptly, which led to transport, strikes as well.

The Ministry of Road Transport and Highways soon will share the details in regards to the rules of fixing the premium rate for every category of motor vehicles. Moreover, the Centre will likewise extend the submission details in regards to the report of accident by the police to the motor accident tribunals in a given timeframe of a month for all the accidents to all the states. This will help for a better and quicker claim settlement process.

Written By: PolicyBazaar - Updated: 10 June 2020
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