Government to Consider Recommendation of One-Time Collection of Third-Party Premiums

If everything works out as per the recommendation of the parliamentary committee, you might be able to pay a one-time premium for third-party insurance for your new automobile(s).

Approximately, 50 percent of the automobile owners don’t buy third-party vehicle insurance, irrespective of the compulsion made by the Motor Vehicle Act (MVA) of India. Keeping that in mind, this particular recommendation was made by the MVA. As the registration tax is a one-time payment, similarly, the third-party insurance can be made a one-time payment as well.

The recommendation (if accepted) will hike the upfront insurance payment of the new automobiles as well. It comprises full reimbursement for the automobile owners by the manufacturers’ end if the automobile design is faulty. The clause to avail vehicles’ recall is a significant amendment in order to preserve environment and occupants’ safety. It favors Rs. 100 crore fine(s) on the companies that violate the regulatory norms.

In another recommendation, it was noted that the design speed is up to 120kmph and the speed limit is up to 80kmph on the Indian roads. And, the provision of speeding for the automobiles manufactured in India is up to 240kmph and 180kmph.

Written By: PolicyBazaar - Updated: 08 February 2021
You May Also Like
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