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Third Party Car Insurance Premium Prices Set For Big Hike — Pricing Out Safety?
The IRDA has not proposed an increase in third party insurance premium only for a few categories of vehicles such as Maruti Alto, Tata Nano, and Datsun Redi-Go.
The Insurance Regulatory and Development Authority has put forward a nearly 50 percent hike for most categories of vehicles for 2017-18. So, if you own a car, which has engine capacity more than 1000cc, then you have to pay a hefty premium.
This is according to a report by The Times of India. It is mandatory for vehicles to have third party insurance while insurance for personal damage is optional. In comprehensive insurance policies, the share of third-party insurance is barely 30 percent.
The IRDA has not proposed an increase in third party insurance premium only for a few categories of vehicles such as Maruti Alto, Tata Nano, and Datsun Redi-Go. But the authority proposes to increase the premium of cars that have 1,000-1,500cc engines by almost 50 percent.
Some sources said that the last hike could be 25-30 percent. It is likely that insurers will push for another round of increase once the Motor Vehicle Amendments is passed with the proviso that insurance companies pay the entire compensation awarded by motor vehicle claims tribunal.
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