Despite the existing and known motor vehicle insurance policies, it is now clear things will be different soon. The change follows a ruling from the Supreme Court that passed orders in favor of IRDAI to significantly make the prices for acquiring a car and a Hero bikes price to increase. However, the longstanding third-party insurance policy remains compulsory.
This announcement came when today the Indian motor industry has two known types of vehicle policies. The covers include the stand-alone Motor Third-Party and the Motor Package Insurance policies all relevant to the private cars and 2-wheelers
What Are The Changes according to IRDAI?
The order indicates the different charges which come as per the engine size of your newly purchased vehicle. This third party cover will be operating for three years from the day of purchase for cars and five years for the two-wheeler. This policy also remains mandatory to all and especially the new buyers.
The estimated costs are₹ 5,286 for cars having an engine volumelower than 1,000 ccs, ₹ 9,534 for the ones with 1,000 – 1,500 cc, and ₹ 24,305 for 1,500 cc scars and further.On the other hand for the two-wheelers, it has an estimated price tag of Rs 1,045 for the bikes having an engine volume lower than 75ccs, while for engine capacity ranging from 75cc to 150cc rates areRs 3,285, between 150cc and 350cc, costs Rs 5,453, and for the vehicles having an engine capacity more than 350cc Hero bikes price is Rs 13,034.
The Benefits of the Cover
The main aim of the announced comprehensive cover looks to protect every buyer against the alarming burglary rates and losses among other related issues. Every car purchaser will have the options of either getting it for a year or also three years, and for the two-wheelers, the five-year option fits well.
According to the orders from the court, it is compulsory that the existing general insurance firms provide the cover for all new cars and bikes. The options can be a distinct product or also including the full assurance cover.
When is the newly introduced policy effecting?
The IRDAI got bound to bring to effect the new policy order as from September 1, 2018. As a result, the authority prepared and gave out the official circular related to this order. The program got directed to both general brokers and all new vehicle buyers. The firms ought to provide to the clients merely the three-year cover known as Motor Third-Party Insurance and the five-year Motor Third-Party Insurance cover for new cars and bikes respectively.
Can the buyers save with the compulsory third party cover?
Good news is that every buyer stands a chance to save a certain amount of taxes even as you consider the ordered insurance covers. The amount funded towards any general insurance policy is retrievable as well as the liability insurance. This claim, however, comes as an expenditure payment as stated in the famous Income Tax Act, 1961. So you need not worry since the due assists you to lower the over-all taxable earnings. But it is good to know that the advantage applies only when you purchase the car or bike for professional or commercial or purpose.