A car insurance is an agreement between the insurer and the policyholder where the insurer will protect the policyholder from financial liabilities incurred as a result of mishap in exchange for a fixed sum. As per the Motor Vehicles Act in India, it is mandatory for every car owner to insure his or her vehicle with a third-party liability cover at least. Car insurance in India is of two types, comprehensive car insurance and third-party liability cover.
A third-party car insurance is an agreement between the insurer and the policyholder where the insurer promises to protect the policyholder from liabilities towards the third-party involved in the mishap. A third-party liability coverage is mandatory in India for any car plying on the roads. A third-party car insurance covers the following:
Recently, the Insurance Regulatory and Development Authority of India (IRDAI) have revised the third-party liability insurance premiums for the 2018-2019 fiscal year. The new third-party liability insurance rates have been effective from April 1, 2018.
The table below exhibits the new third-party insurance premium rates:
|Private Car||Third-party Liability Insurance Premium Effective From April 1st 2018|
|With over 1000 cc||1,850|
|Between 1000 cc and 1500 cc||2,863|
|With over 1500 cc||7,890|