Good news for vehicle owners, Insurance Regulatory and Development Authority of India (IRDAI) has ordered to reduce the vehicle insurances. This is a big surprise for the vehicle owners as earlier the Insurance rates have gone premium. But this price drop in the third-party insurance is only for certain cars and bikes but not for all vehicles.
The main reason for this new change in the third party insurance is because of implementing BS IV (Bharat Stage 4) rule. The vehicles emits 80% less Particulate matter (PM) and even the nitrogen oxide is also reduced by over 50%. The third-party insurances will be reduced by 8.5% for certain vehicles. The Motor Vehicles Act, 1988 made it mandatory for all the vehicles to get insurance for vehicles
We all know that Supreme Court has banned all the BS-3 vehicles and ordered motor companies to sell only the vehicles which are compliant with BS-IV norms. But IRDAI has suggested specific cars and bikes for low-rate third party insurance. The cars which are having more than 1500cc engine capacity will come in this segment and according to the reports almost 80% of all the cars comes under this segment..
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IRDAI revises the insurance prices for every year and this time interestingly it has dropped 8.5% of third party insurance rates. IRDAI have already decided the insurance rates back in March itself but after the Supreme Court orders on BS4 vehicles, IRDAI made certain adjustments to the price. For bikes which exceed 150cc engine capacity also comes under this category. Bikes like Pulsar, Unicorn, Royal Enfield, Yamaha Fazer and all other bikes with more than 150cc engines.