Third party premium up by 70%

The Insurance Regulatory and Development Authority (Irda) has increased the third-party motor premium by up to 70% from April 25.

Irda said that based on the concerns expressed by various stakeholders during discussions, premium for goods carrying and passenger carrying vehicles has been brought down by 15% and so the real change is 68%.

The new rates will be based on parameters, like average claims cost for each class of vehicle, frequency of claims for each class of vehicle and cost inflation index for the year of review, Irda said. "There is some relief after the hike.

The regulator has asked companies to be mindful of the concerns expressed by vehicle owners about both the rates and availability of insurance. Moreover, the regulator said that it will treat any complaint of non-availability of insurance or use of methods to deny or delay the client seeking insurance cover, seriously.

Transfer your No-Claim bonus to new vehicle

On sale and transfer of vehicle the bonus can be transferred to the new car. The bonus can be kept on hold till a period, which is a maximum of three years and the benefit of the same can be used within three years on any car being bought in the same name.

The seller should take the no-claim bonus-reserving letter from its insurance company to be used for the next car. The buyer of the old car will not get any benefit of no-claim bonus on purchase of the car.

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