IRDA Notice: Cost Of Insurance To Go Up Substantially From 1st September


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The IRDA circular is quite clear that OD portion can be given optionally for 1 year or as a package for 3 years.
The mandatory part is only for Third party liability cover.
Point no. 5 of the circular deals with this point.
 
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If you take OD for 3 years at a shot how about NCB carry over ? What would be procedure for same ?
Even dealers are confused on above.

In above Circular page no.3 item 5 (vi) reads as ...'NCB applicable when the Policy term has been completed''. Does this mean that NCB allowed only after the end of 3rd year.[roll]
 
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What was the existing TP insurance premium per year?
Has the three year TP insurance premium suggested by IRDAI (ex. 9534 INR) been jacked up to be more than the TP premium paid three times over the span of three years?

My car's TP premium had varied over the three years? I though the TP insurance premium was set by IRDAI. How did it change every year?
 
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What was the existing TP insurance premium per year?
Has the three year TP insurance premium suggested by IRDAI (ex. 9534 INR) been jacked up to be more than the TP premium paid three times over the span of three years?

My car's TP premium had varied over the three years? I though the TP insurance premium was set by IRDAI. How did it change every year?
What I understood was that so far we have been paying 3rd party insurance premium annually, which will have to pay 3 years in advance from 1st Sept (5 years in case of two wheelers).

After 3 years when renewing the policy the premium will be reduced as per the IDV of the car/two wheeler then..
 
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What I understood was that so far we have been paying 3rd party insurance premium annually, which will have to pay 3 years in advance from 1st Sept (5 years in case of two wheelers).

After 3 years when renewing the policy the premium will be reduced as per the IDV of the car/two wheeler then..
In that case the upfront insurance would be huge sum. It may run to lakhs .
 
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In that case the upfront insurance would be huge sum. It may run to lakhs .
Yes it is going to be, but only 3rd party insurance amount has to be calculated/paid 3 times more in advance (I am not sure the percentage, but I think it will be around 10 to 15% of total comprehensive insurance amount payable)?
 
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Car/bike insurance premiums to go up again as accident cover made mandatory

The Insurance Regulatory and Development Authority of India (IRDAI) has ordered vehicle insurers to raise the Compulsory Personal Accident (CPA) cover to Rs 15 lakhs for the owners of both two-wheeler and four-wheelers plying on the nation’s roads. This will see insurance rates go up for the second time this month.


The order to increase in the personal mandatory cover comes in response to an October 2017 verdict by the Madras High Court that ordered the IRDAI to raise the personal accident cover to Rs 15 lakhs from the maximum Capital Sum Insured (CSI) of Rs 1 lakh (two-wheelers) to Rs 2 lakhs (four-wheelers) to help provide some succour to road accident victims and their families.

The move to increase the personal accident cover for the owner-driver will see the premium rise to Rs 750 compared to the previous rates of Rs 50 for two-wheelers and Rs 100 for four-wheelers. Personal accident cover for vehicle owners is mandatory as per insurance regulations and covers the owner and their drivers and will be provided with both comprehensive covers and third party liability by insurers.

The IRDAAI has stated that any vehicle owners looking for a cover of over Rs 15 lakh will be able to do the same by paying extra over the new minimum Rs 750 premium. The new CSI of Rs 15 lakhs can be availed by customers getting their vehicles insured from the day the insurance agency receives the circular with the new order from the IRDAI.

This is the second time this month that automobile insurance rates have gone up and it the second time that it has been done following an order from India’s judiciary. From September 1 onwards, as per an IRDAI directive following a ruling by the Supreme Court, saw the mandatory addition of five years of third-party insurance for any car or SUV getting insured, whether old or new. For two-wheelers, the minimum mandatory third party insurance required was set at 3 years. These mandatory changes following the Supreme Court’s directive to increase road safety lead to a minimum 4 percent increase in the on-road prices of cars and bikes across the nation. While the new increase in premium will be between Rs 650 and Rs 700 for four and two-wheelers respectively, it is something the benefits will be appreciated by the general public.

Source:
 
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To me, it is a welcome move. With road infrastructure becoming more & more sophisticated, and the increasing accidental deaths on the road, the burden of unfortunate events on the family (especially the budget conscious Indian buyers - who compromise safety) is much reduced.
 
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