Since today, the insurance policy for cars and two-wheelers has changed across the country, due to which buying of vehicles has become cheaper than before. In fact, IRDAI (Insurance Development and Regulatory Authority of India) has changed the Motor Third Party and On Damage Insurance from today. According to IRDA instructions, it will no longer be compulsory for customers to get 3 years on car purchases and 5 years on third party cover on purchase of two-wheelers. IRDA has now withdrawn the package cover on the vehicles. That is, this new rule has come into force all over the country from today.
So the rules changed
In June, IRDA withdrew the On-Damage and Long Term Package Third Party Insurance policy on vehicles. IRDA said that due to this, prices were getting expensive, due to which customers were having trouble in buying vehicles.
Buying a vehicle will be cheaper
After the change in the insurance policy, it will be cheaper to buy vehicles from today.
What is motor third party insurance?
If you understand third party insurance in easy language, then a third party directly means a third party.
The owner of the car is the first party.
There is another side driving the car.
The victim is a third party during the accident.
According to the law, the accident occurs due to the accident of the vehicle, and the driver and the third person going on the road is injured, then the owner and driver have to compensate for the loss of life and property of the victim. In these cases, insurance companies do third party insurance to compensate for financial compensation. That is, if the third party is insurance, then the compensation is paid by the insurance company.
What is the damage cover?
In the Comprehensive Policy or On Damage, the insured vehicle is also covered with a third party (victim) cover during the accident. Understand in easy language, on Damage Cover, compensation for the victim's compensation during the accident, and the damage is done to your car is compensated.
When did the rule come into force?
The 3-year motor insurance policy was mandated by IRDA from August 2018 on the purchase of the car. After this, a 5-year motor insurance policy on two-wheelers was also made compulsory in September and the long term package was reviewed in June 2020. Now the rules have been changed back.