Updated Third-Party Insurance Premiums For Cars And Bikes As Fixed by IRDAI

Every car that travels on the highways of India must have some sort of automobile insurance, especially third-party protection, without exceptions. The Motor Vehicles Act of 1988 mandates that anybody who owns or runs a motor vehicle in India must carry third-party insurance. It should be noted that the IRDAI, not insurance companies, controls the price of third-party insurance. #

What Is Automobile Third-Party Insurance?

Third-party insurance is the bare minimum insurance coverage required to operate a vehicle in India. The policy covers both property loss and bodily harm to a third party.

How Does It Work?

If a policyholder is involved in an unfortunate accident, the insurer will provide funds to cover the cost of mending the third party’s property. The financial load on the policyholder is thereby somewhat reduced. In an accident, the insured shall promptly notify the insurer before submitting a claim.

Third-party insurance only shields you from liability if your vehicle is involved in an accident that causes third-party property damage, bodily injury, or wrongful passing away. Comprehensive insurance offers total protection for your vehicle. *

A car insurance premium calculator is a tool you may use online to determine the coverage required based on your needs.

Aspects Of Third-Party Liability Insurance:

  • By law, third-party legal protection is required.
  • It pays the third party for any property damage your car causes.*
  • The car insurance will pay for the medical expenses of any third parties that sustain bodily injuries.*
  • The coverage will provide a lump sum payment if a third party perishes or is rendered permanently disabled due to an accident involving your vehicle.*
Vehicle Type Rates (Rs)
Private Four-Wheeler Cars
Not exceeding 1000 ccs 2,094
Exceeding 1000 ccs but not exceeding 1500 cc 3,416
Exceeding 1500 ccs 7,897
Two Wheelers
Not exceeding 75 ccs 538
Exceeding 75 ccs but not exceeding 150 ccs 714
Exceeding 150 ccs but not exceeding 350 ccs 1,366
Exceeding 350 ccs 2,804
Category of Vehicle Rates (Rs.)
New Private Four-Wheeler Car – Three-year single premium
Not exceeding 1000 ccs 6,521
Exceeding 1000 ccs but not exceeding 1500 ccs 10,640
Exceeding 1500 ccs 24,596
New Two Wheeler – Five-year single premium
Not exceeding 75 ccs 2,901
Exceeding 75 ccs but not exceeding 150 ccs 3,851
Exceeding 150 ccs but not exceeding 350 ccs 7,365
Exceeding 350 ccs 15,117

The recent IRDAI update to raise third-party insurance premiums for vehicles promotes road safety and financial security.

While this update may increase the financial burden on vehicle owners, ensuring adequate compensation for victims in case of accidents is essential. #

The recent adjustments to third-party insurance premiums for cars and bikes, as set by the IRDAI, represent a pivotal development in the realm of insurance and road safety in India. These updates not only reflect the growing awareness of the need for financial security and accountability but also play a crucial role in promoting responsible driving practices. While they may lead to increased costs for vehicle owners, they ultimately contribute to safeguarding the interests of all road users, fostering a safer and more responsible driving environment across the country. It is essential for vehicle owners to stay informed about these changes and ensure that they are adequately covered to mitigate potential financial and legal risks.

^Claims are subject to terms and conditions set forth under comprehensive carl insurance policy.

*Standard T&C Apply

#Visit the official website of IRDAI for further details.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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