Your car insurance premium for third-party liability coverage is set to rise 20% from April 1. The Insurance Regulatory and Development Authority ( Irda) issued a circular last week spelling out the quantum of hike applicable to private cars, two-wheelers and commercial vehicles for the financial year 2014-15. The premium for your third-party liability cover, which is mandated by law for all vehicles, will go up when you renew your policy this financial year. The thirdparty insurance premium tariff is fixed by the insurance regulator every year. The hike for private cars was in the region of 20% last year as well.
Insurers and industry watchers feel the impact of increase in premium will be nominal for car owners. "For private cars, the share of third-party component in the overall premium is quite small at 15%. So, the overall increase in premium will be just 1-2%," says Sanjay Datta, chief of underwriting and claims, ICICI Lombard General Insurance. If you own a car with engine capacity of less than 1000cc, your third-party premium will amount to Rs 1,129, up by Rs 188 compared to last year. Similarly, for cars with an engine capacity between 1000cc and 1500cc, the premium increase will be Rs 222. For cars with engine capacity exceeding 1500cc, the third-party premium will go up by Rs685 to Rs4,109 this year. "The maximum increase for private car owners will be close to Rs700. An increase of a few hundred rupees, in absolute terms, should not worry policyholders," says Deepak Yohannan, CEO of insurance aggregator portal myinsuranceclub.com.
Source : economictimes.indiatimes.com
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