IRDA Revises Third-party Insurance Rates: Here is All You Need to Know

 The Insurance Regulatory and Development Authority (IRDA) has introduced some changes to third-party insurance by introducing revised third party insurance premium rates for some categories of vehicles. The new premium rates have been in force from April 1, 2017. With this announcement, changes in terms of premium rate are visible in the good carrying vehicles or public carriers. Three wheelers are excluded, however.

The IRDA’s recent report dated March 28, 2017, indicated a massive hike in premium rates for goods carrying vehicles, which went up to 40%. The rate varied depending on the load. If take the example of previous rates range between INR 15,365- INR 24,708. This rose up to INR 23,047-Rs 37,062 with the increase of premium rate.  It was also on news that truckers in the South went on strike for 10 days protesting the sheer hike in the compulsory auto third-party insurance. They also held discussions with the concern regulatory body asking for a reduction in rates.

With the new announcement made by IRDA, significant changes have been visible. Let’s take the above example. Applying the new rules, now the rates range from Rs. 21,511 – Rs. 36,120 to Rs. 19,667-Rs 33,024.

The premium for private cars is affected as well especially those exceeding 1000 cc and 1500 cc, including special types of vehicle, agricultural tractors and two wheelers.

Revised Premium Rates:

Vehicle Type Previous Rate New Rate
Cars with engine capacity (more than 1,500 cc) 8,630 7,890
Cars with engine capacity (less than 1,000 cc) 2,055 No change
Goods carrying vehicles or public carriers (Exceeding 40,000 kg) Rs 36,120 Rs 33,024
Mid-segment cars (1,000cc – 1,500 cc) Rs 3,132 Rs. 2,863

The two-wheelers are also introduced with reduced premium rate. Similarly, reduction has also affected e-rickshaws or other passenger-carrying vehicle.  However, if we compare the current economic, the premium rates are still higher.

What is Third-Party Insurance?

Also famous as an ‘act only’ policy, the third-party insurance protects against the actions of the third party. This policy covers claims for damages or losses caused by you to a third party. It is a kind of insurance purchased by the first party-the insured, by the second party-an insurer, for ensuring financial assistance against the claim of others-the third party. The first party wouldn’t get any benefits in this event. This plan is mandatory by the law for all car owner at the time of purchasing a car.

 

How are Third-Party Insurance Liabilities Settled?

Purchasing a third-party motor insurance is compulsory for all the automobiles plying on the Indian roads. In the case of an accident, a third-party insurance claim can be filed so that the compensation for the damages and the injuries can be obtained.

In a case, you’re involved in a road mishap and you’ve suffered bodily injuries and damages on your property because of somebody else’s fault, the law allows you to register a claim and demand compensation from the owner of the involved automobile.

For the convenience of the policyholders, the claims process has been nade simpler by the insurance providers. Still, it is recommended to the policyholders to better to know the ins and outs of the claims filing process. This article will be your helpful guide.

What is a Third-Party Liability or Insurance?

The Third-party liability or insurance is a basic kind of vehicle insurance plan offered by general insurance companies.  According to law, it is mandatory to have a third-party cover for every automobile plying on the Indian roads.

Claims Filing Procedure

In a case you’ve suffered a road mishap, you can file a claim against the owner of the involved vehicle. In the event, your automobile is involved in any accident and it results in bodily injuries, death or damages to a third-party or its property, the third-party can file a claim against you as your vehicle was involved in an accident. The claim would be settled by your insurance provider.

The claims registering process varies as it depends on the consequences or nature of the accident. Mentioned below is the basic claim filing process specifically for the third-party liability cover.

Property Damage

  • In the case of a road mishap, property damage is caused to a third-party, the affected individual can register a claim through theMotor Accident Claims Tribunal.
  • The person filing the claim should get the insurance details of the involved automobile and register a First Information Report at the nearest police station.
  • The insurance details along with the FIR needs to be submitted at the time of registering the claim.
  • On the basis of the tribunal’s decision, the compensation would be provided to the person who has filed a claim.
  • As per the law, the highest amount that can be offered as a compensation regarding the property damage is Rupees 7,50,000.

Bodily Injury, Disability or Death

  • In case a road mishap results in any bodily injury, disability or death of the third-party involved, the third-party or his/her dependents depending upon the case can register a claim in order to get a compensation from the automobile owner.
  • A FIR needs to be registered at the nearest police station. The FIR must clearly state the series of the events and the details of both the parties involved.
  • The vehicle owner’s insurance details must be obtained.
  • The information mentioned above must be presented to the Motor Accident Claims Tribunal as per the jurisdiction.
  • The tribunal will deliver its ruling on the basis of the submitted documents.
  • There are cases, where the automobile owner wants an out of court settlement. It is allowed by the law.

Tips to Find the Right Car Insurance Policy

Buying the right car insurance plan for your car is a tough task in itself unless you know the important tips that should be acknowledged while buying a car insurance plan. You must have noticed that auto insurance agents or broker try to sell their products. However, it is important for you to choose the insurance policy carefully after going through the benefits and coverage of the insurance policies. It is always advisable to compare between different insurance plans from multiple insurance providers to get the better offering and the best deal.

Increasing gas prices are elevating the cost of owning a car. Therefore, it is worth seeking different ways to cut other car operating expenses. You can lower the cost of car operations by buying a car insurance policy. According to the Indian Motor Vehicle Act all vehicle should be covered under a third-party insurance plan that provides protection against legal liability against the expanse that might incur due to loss or damage to third party or its property.

Today insurance companies are offering comprehensive plans that offer coverage against multiple miss happenings that can cause additional expenses. Check out some important tips that can help you to buy the right insurance plan from the market below:

  1. Do an Annual Rate Check: Compare the rates from other insurance companies to get the best deal in the market. You can easily find insurance comparison tools where you can compare between different plans on different basis. Some insurance companies or insurance agents or broker also offers personalized quotes not immediate but after sometime. Online shopping is one of the best time-efficient ways to find a better deal.
  2. Select a Plan from Branded Insurer: It is always seen that well-known or branded insurers do well, as they are better than others with their claim settlement procedure, renewal procedure, and non-claim benefits. So before buying any car insurance policy make sure you check the full Ratings of the insurer companies and real customer reviews.
  3. Maintain Good Credit: Keep your eyes on your credit score because in many cases a low score can increase the premium amount of your car insurance policy.
  4. Choose the Right Deductable: in case you set a high deductible, you premium get reduced, but you have to bear huge amount out of pocket in case of any unfortunate events like an accident.
  5. Read the Policy Wording: Make sure that you check the coverage and benefits offered under your policy. Also ensure that the policy offers enough liability coverage for third party bodily injury and property damage. This is true that the medical costs and risk increases, and therefore your coverage should too. Always select a plan after evaluating the value that might incur due to different possible risk.
  6. Choose the Right Car: Car insurance plan also offers coverage for own damage and it is the big part of the price of auto insurance. Insurance company offer cashless garage facilities for own vehicle damage in case you meet with any accident and occur damage to your car.

Buying a car insurance policy is bit tough as there are number of car insurance policies available in the market. But following the aforementioned important tips you can easily reach out the right insurance plan for your four-wheeler. It is always advised to buy insurance online because it saves lots of time and money.

 

What to do After a Car Accident to Claim Insurance

 

Did your car recently got involved in an accident? Then, this is the right place where you will know the several steps that need to be followed after a car accident, so as to make claims against the insurance policy? There are several situations that may arise when a car gets involved in an accident. The losses vary, which range from car damage to third party loss, etc. Here, have a look at the ways you can handle situations to claim insurance when a car accident takes place.

What are the procedures to be followed to make claims in case of an accident in which your car is involved?

  • Foremost, you should inform about the accident to the insurer, even if you do not feel the need to make any claim.

 

  • You should not admit in any way that the accident was your fault

 

  • Try and capture proofs from the accidental scene by taking photographs which will later serve as evidence for making claims

 

  • The policyholder should exchange all kinds of details including names and other details from the witnesses and other drivers present at the spot. In case, someone is unwilling to provide you with details then the related information can be retrieved through the vehicle registration number

 

  • Produce a cover note or your insurance certificate to the police if anyone is injured in the accident. If you fail to do so, take all required documents from the scene to the police station within seven days of the accident

 

What procedures should be followed to make claims if you have a third party insurance?

In case of third party liability insurance, you should make adequate claims against the other driver. Leave it to the insurer to decide who is actually responsible for the accident. If it is proved that you are responsible for the damages, then you will have to pay the compensations for repairs against your own vehicle.

What to do in case of third party liability insurance claim? Write a letter to the driver requesting for claim, or you should write to the company of the vehicle (involved in the accident), regarding all details what has happened, whether you were involved at all, etc. In that case, the other driver should intimate about the accident to your insurer. Contact Motor Insurance Database to check if the other driver has an insurance policy.

What if the accident was not your fault then what you should do?

The answer is simple. Use and contact a credit hire company instead of your insurance company.

What should be done before you repair your vehicle?

Other than making claims in case of an accident or third party insurance claim, you should follow a few things to make adequate claims for repairing your vehicle which got involved in an accident. First, inform the insurer and seek permission whether you can go with the repair works of your vehicle. Do not start until the insurer gives a green signal as the company may send an inspector to assess the extent of damages caused to your vehicle. In case, the vehicle turns out to be in a batter condition post repair works than what it was before, then you will have to pay for the repairing expenses.

Thus, reading this article definitely gives you a comprehensive glimpse of what you should do before making an insurance claim.