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Home Auto Industry

Car Insurance To Become Costlier From September 2018

ahad by ahad
July 24, 2018
in Auto Industry, Cars
0
in a car you have rising costs through fuel, insurance, parking fees and tolls.

in a car you have rising costs through fuel, insurance, parking fees and tolls.

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The Supreme Court of India has ordered that all new vehicles, including four-wheelers, will have to be sold with a three-year third-party insurance from 1 September 2018. The move is expected to result in a significant hike in insurance prices. At present, a new car insurance includes a third-party cover for one year, which is also the duration of the new car insurance policy.

Car Insurance to cost more from September 2018

The reason for the change in law is that most of the buyers do not renew their insurance policies after the first year, let alone third-party cover, thus defeating the purpose of the law. As per a report, six crores out of the total 18 crores registered vehicles plying on Indian roads don’t have a valid insurance cover.

A third-party insurance covers anyone other than the driver or the passengers, who has incurred a loss in an accident. That’s why the situation is alarming as it leaves such third-party road users vulnerable and prevents them from receiving any compensation in case of a mishap.

Source: Cardekho

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