New Delhi, Aug 30: The cost of buying a new car is expected to increase by Rs 24,000 for a new car and Rs 13,000 in case of a new bike from September 1 due to mandatory third party insurance, as per the Supreme Court order.
As per the IRDAI (Insurance Regulatory Development Authority of India) circular, all general insurers have been asked to abide by the changes in third party insurance in accordance with the Supreme Court orders. Insurance companies will facilitate covers for 3-5 years, which can also be offered bundled with third party insurance and own damage insurance.
Third party insurance is a kind of liability insurance where an insurance company helps you protect yourself from the claims of a third party arising due to a damage caused by you to the their property.
Click here read IRDAI circular