Car insurance in India is something that is taken seriously by Indian citizens. This may be due to the mandate applicable on all vehicle owners in India to have a car insurance plan.
Online PR News – 05-July-2013 – Jaipur, Rajasthan, India – IRDA has announced an increase in Car Insurance premium in India and the news has been confirmed by Insurance Experts, the leading network of finance bloggers, yesterday in Jaipur. The industry has proposed up to a two-fold increase in premium charges. The rule will be applicable from April 1, 2013 taking into consideration growing inflation across the nation and the record of claim settlement.
The IRDA is planning to release an exposure draft. The draft will explain precise increase in premium charges for third party insurance cover. The amount will rise for all two-wheelers, commercial vehicles and passenger cars running across the nation. The owners must stay alert about these changes in premium charges.
The break up for premium increase has been recently released to help car insurance companies have an idea on exact increase rate for vehicles. It is believed that passenger cars below engine capacity of 1,000 cc, the premium for third party will experience a hike by 85.30 per cent. This means that the vehicle owners must shell out about 1,453 INR per year on car insurance premium. This is regardless of where one buys the insurance from. Buying Car Insurance Online will not make a difference.
For commercial or goods carrying vehicles with carriage capacity over 40,000 kilogram, the owners or drivers must pay 53,832 INR each year. The increase is approximately about 313.45 per cent.
IRDA (Insurance Regulatory and Development Authority), the sector regulator came up with a similar plan last year too. It was actually executed in March 2012. However, it wasn’t accepted easily by the audience. The plan was instantly disputed by transporters’ association. In fact, the association members went to court for a legal battle with IRDA and general insurers in the Calcutta High Court.
“The result went into favour of IRDA after 8 long months of litigation” confirmed Insurance Experts.
The IRDA is now serious about the hike. It has linked premium rate with the current rate in the market. The sector regulator has also instructed the stakeholders to submit their comments on the issue and queries by March 01, 2013.
Devika Pandit is a renowned Insurance Agent, presently working for the venerated survey company for the contribution of Facts & Figures for the reports & statistics. Previously, she was a active member for many government schemes concerning Auto Insurance in India.