Big news: Auto Mobile insurance going to be 20 percent more expensive, Know how it will directly impact you
Crores of vehicle owners of the country, already facing the skyrocketing prices of petrol and diesel, may get another dose of inflation. Insurance companies have made full preparations to increase the insurance premium this year. Companies intend to increase third-party motor insurance by 15 to 20 percent.
Given the loss being caused to the companies due to corona in the proposal sent by the insurance companies to the Insurance Regulatory and Development Authority of India, there is a need to increase the third-party insurance by 15 to 20 percent. approval has been sought. If the demand of the companies is accepted, then it will have a direct impact on crores of vehicle owners of the country.
The proposal is given to IRDAI
According to the report of Zeebiz, there are about 25 general insurance companies in India. Companies are hopeful that IRDA will give the green flag to their proposal. Companies believe that they are suffering a lot due to Corona. Given this, the current premium of third-party insurance is not good and they are incurring losses. The situation of some companies has become such that their solvency has gone below their prescribed limit. Third-party insurance claims have also increased. This has also increased the pressure on companies.
Required third party insurance
After a decision of the Supreme Court in 2018, it is mandatory to take 5 years of third-party insurance and 3 years of third-party insurance for four-wheelers while buying new two-wheelers. According to the Motor Vehicle Act, any vehicle that moves on the road, it is necessary to have third party insurance. Insurance premium is determined by IRDAI (IRDAI.). The premium changes every year. There has been no change in it due to Corona for the last two years.