We have seen many court judgement awarding third party 10 lakhs as compensation for road accident by the vehicle owner and again higher courts increasing the award based on the plea of the plaintiff for higher compensation.
This has resulted in higher bleeding in expenses for insurance companies under motor vehicle insurance. but now the pinch has to be borne by the vehicle owners.
Owning a vehicle would now pinch your pockets even more, with third-party motor insurance premiums set to rise by up to 65 per cent for two-wheelers, private cars and heavy load carriers from April 25.
The premiums are being revised after a gap of four years, the sector watchdog Insurance Regulatory and Development Authority (IRDA) said, adding, from now onwards the third-party motor insurance premium rates would be revised annually.
The IRDA has also fixed a formula for revising the motor insurance premium rates, which would be done after taking into account inflation and data on claim settlement. These rates are currently regulated by the Tariff Advisory Committee of the IRDA.
