From today, the insurance policy of car and two-wheeler has changed across the country, making it cheaper to buy vehicles than before. In fact, IRDAI (IRDA-Insurance Development and Regulatory Authority of India) has changed motor third party and on-table insurance from today. According to IrDA’s directives, it will no longer be mandatory for customers to take a third party cover of 5 years on purchase of 3 years and two-wheelers on car purchases. The package cover from the vehicles has now been withdrawn by IRDA. That is, from today, this new rule has come into force throughout the country.
Hence the rule of revenge
IRDA withdrew the on-table and long term package third party insurance policy on vehicles in June. Irda said that the prices were getting costlier due to which customers were having trouble buying vehicles.
Buying a vehicle would be cheaper
After the changes made in the insurance policy, it will be cheaper to buy vehicles from today.
What is motor third party insurance?
- If third party insurance is understood in an easy language, the third party directly means the third party.
- The owner of the train is the first party.
- There is another side running the train.
- The victim is the third party during the accident.
According to the law, the accident takes place by the accident of the train and the driver and the third person going on the road is injured, the vehicle owner and the driver have to compensate the loss of life and property of the victim. In these cases, insurance companies make third party insurance to compensate for economic compensation. That is, if there is third party insurance, the compensation is paid financially by the insurance company.
When was the rule applied?
The 3-year motor insurance policy on car purchase was made mandatory by IRDA from August 2018. Thereafter, a 5-year motor insurance policy on two-wheelers was also made mandatory in September and the long term package was reviewed in June 2020. Now the rules have been changed back.