Revised Rate of Third-Party Car Insurance Policy

• Protect yourself with third party or comprehensive cover
• Use bumper to bumper policies to reduce your liability
• Enjoy facilities like zero depreciation and roadside assistance covers

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.

What is a third-party car insurance?

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:

• Liabilities towards damage/loss to a third-party vehicle
• Liabilities towards damage/loss to an external property
• Liabilities towards injuries to a third-party involved in the mishap

Revised rate of third-party insurance

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: