Do third party insurance premiums get revised each year?
Yes the insurance watchdog IRDA revises the rates of mandatory third party insurance annually. Since many insurance companies have been facing high third party losses IRDA has suggested a price hike of 3% to 30% across various vehicle categories this year. These rates get applicable from first day of the new financial year.
The third-party premium rates are revised by IRDAI every year on the basis of claims raised and fulfilled in the past. The Insurance Regulatory and Development Authority of India (IRDAI) has proposed changes to the third-party liability premium for motor insurance.
As per the new proposal, there is a slight reduction in the third-party liability premium for certain segments of vehicles that will encourage vehicle owners to abide by the legal requirement of having at least third-party liability insurance coverage. The reduction in rates is also expected to bring down the costs of comprehensive car insurance policies, as the third-party liability coverage is an in-built part of the comprehensive plan.
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