New Delhi The rules related to car-bike insurance are changing from the first date of August. The Insurance Regulatory and Development Authority of India (IRDA) has issued a notification in this regard. If you are thinking of buying a new car, then wait till August 1, because you will get the benefit of it. According to the new rule, you will get relief from the large amount spent on the insurance of the vehicle at the moment.
Will not take 3-5 years insurance cover
IRDA has issued a notification stating that any third party and Own damage insurance for the new vehicle (four wheeler and two wheeler) which was to be taken for 3 to 5 years from 1 August 2020, is somehow Will not be needed.
This rule came into force in 2018
Earlier, on August 28, 2018, IRDA issued a notification making it mandatory to take three years of third party insurance for new cars and five years of third party insurance for two wheelers from 1 September 2018. Long term meant five years for two-wheelers and three years for four-wheelers, the ‘Motor Third Party Policy’ was implemented. After this, insurance companies introduced long term package plans in which third party and on damage cover was available.
What is third party cover and own damage cover
In the event of any accident, the motor insurance policy mainly gives you two types of cover, third party cover and on damage cover. Under the Motor Vehicle Act, all vehicle owners are required to take third party insurance. Insurance is the first party, insurance is the second and third party is the one who suffers losses due to the insurer. This party claims for the loss and the insurance policy covers its loss.
Now IRDA has said that in view of the performance of the long-term policy, it has been decided that from August 1, taking such a policy will not be binding.
Buying a car and bike will be cheaper
Changing motor vehicle insurance may make buying a new car or bike a little cheaper from next month. This will benefit millions of people in the Corona period. Irda said that buying a new vehicle proves to be expensive for the people due to the long term package policy.
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