Latest Third-Party Insurance Premiums for Cars and Bikes as Fixed by IRDAI
Introduction
In India, it is mandatory for every vehicle owner or operator to have third-party insurance coverage, as per the Motor Vehicles Act of 1988. This type of insurance provides protection against liability arising from the damage caused to a third party’s property or any bodily injury or death resulting from an accident involving the insured vehicle. The Insurance Regulatory and Development Authority of India (IRDAI) is responsible for determining the premiums for third-party insurance. In this article, we will explore the latest third-party insurance premiums for cars and bikes as fixed by IRDAI.
What is Third-Party Car Insurance?
Third-party car insurance is the minimum insurance cover required to legally drive a car in India. This policy provides coverage for property loss and physical injury suffered by a third party due to an accident involving the insured vehicle. It is a contractual agreement between the vehicle owner and the insurer, where the insurer agrees to indemnify the owner if they are sued or found legally accountable for the injuries, death, or property damage caused to a third party.
How Does Third-Party Car Insurance Work?
When an accident occurs involving a policyholder, the insurer provides financial assistance to cover the expenses related to the damage caused to the property of the third party. This reduces the financial burden on the policyholder. In the event of an accident, the insured must promptly notify the insurance provider before submitting a claim. It is important to note that while comprehensive insurance offers complete protection for the insured vehicle, third-party auto insurance only covers liability arising from the vehicle’s involvement in an accident resulting in property damage, personal injury, or wrongful death to a third party.
Features of Third-Party Liability Cover
According to ICICI Lombard, a leading insurance provider, the features of third-party liability cover include:
- Mandatory Legal Cover: Third-party insurance is mandatory by law for all vehicles in India.
- Property Damage Compensation: The policy compensates the third party for any property damage caused by the insured vehicle.
- Medical Expenses Coverage: If a third party sustains physical injuries, the policy covers their medical expenses.
- Death or Permanent Disability Coverage: In the unfortunate event that a third party dies or becomes permanently disabled due to an accident involving the insured vehicle, the policy provides a lump sum amount as compensation.
Latest Third-Party Insurance Premiums for Cars
The IRDAI has fixed the following third-party insurance premiums for cars:
| Vehicle Type | Rates (Rs) |
|---|---|
| Private Cars | |
| Not exceeding 1000 cc | 2,094 |
| Exceeding 1000 cc but not exceeding 1500 cc | 3,416 |
| Exceeding 1500 cc | 7,897 |
Latest Third-Party Insurance Premiums for Bikes
For bikes, the IRDAI has fixed the following third-party insurance premiums:
| Vehicle Type | Rates (Rs) |
|---|---|
| Two Wheelers | |
| Not exceeding 75 cc | 538 |
| Exceeding 75 cc but not exceeding 150 cc | 714 |
| Exceeding 150 cc but not exceeding 350 cc | 1,366 |
| Exceeding 350 cc | 2,804 |
New Private Car and Two-Wheeler Premiums
The IRDAI has also introduced new premium rates for private cars and two-wheelers with longer policy durations:
| Category of Vehicle | Rates (Rs) |
|---|---|
| New Private Car – Three year single premium | |
| Not exceeding 1000 cc | 6,521 |
| Exceeding 1000 cc but not exceeding 1500 cc | 10,640 |
| Exceeding 1500 cc | 24,596 |
| New Two Wheeler – Five year single premium | |
| Not exceeding 75 cc | 2,901 |
| Exceeding 75 cc but not exceeding 150 cc | 3,851 |
| Exceeding 150 cc but not exceeding 350 cc | 7,365 |
| Exceeding 350 cc | 15,117 |
Conclusion
Having third-party insurance coverage is mandatory for every vehicle owner or operator in India. It provides protection against liability arising from accidents involving the insured vehicle that result in property damage, bodily injury, or death to a third party. The IRDAI determines the premiums for third-party insurance, and they vary based on the type and engine capacity of the vehicle. It is essential to have this insurance coverage to comply with the law and protect oneself from potential financial liabilities. Stay informed about the latest third-party insurance premiums as fixed by IRDAI to ensure you have adequate coverage for your car or bike.
