The IRDA has increased third-party motor vehicle insurance premiums, effective April 1st 2016. The new rates represent an increase up to 40% in car insurance premiums and up to 25% in two wheeler insurance premiums. Third-party insurance coverage Motor vehicle insurance is broadly categorised as third - party insurance and comprehensive insurance. Third - party insurance is a legal requirement in India for all vehicle owners. Third party insurance covers any damage done to another person’s life or property. In case of loss of life, coverage is unlimited. In case of damage to property, liability is limited to a maximum of Rs. 7.5 lakh. Third party insurance does not cover losses incurred for self or own property. Comprehensive insurance, on the other hand, includes personal accident insurance and is optional. A comprehensive policy would cover loss or damage to own self and property as well as to third-parties. Coverage provided is as per the policy offered by insurance companies.
