Big new change: Rs 15 lakh auto insurance mandatory for all-vehicle owners: Here’s what changes for you
Electronics & Gadgets  

Big changes to insurance policy by the Insurance Regulatory and Development Authority (IRDAI). The premium for insurance for all auto policies is set to go up and the cover for vehicle owners to also go up to Rs 15 lakh. All details


A tragic accident in 2011 that lead to a death of a young man travelling pillion on his own bike when the rider braked suddenly to avoid hitting a cyclist has now made way for a new law. When the wife of the deceased man approached the Motor Accident Claims Tribunal, the jury announced a compensation of Rs 53 lakh under the third-party insurance cover. However, United India Insurance appealed against this order as the insurance cover was only for third-parties and not vehicle owners. Under the policy then only Rs 1 lakh was granted to the vehicle's owners.
The law has now been changed. All vehicle insurance policies will now include personal accident cover worth Rs 15 lakh in case of the death of the owner while driving or riding. This new rule will help the families of accident victims especially two-wheeler riders who are most of the time under-insured. The Insurance Regulatory and Development Authority (IRDAI) in a circular has directed all third-party insurance companies to include this cover to vehicle owners-drivers of all vehicles (two-wheelers, three-wheelers, passenger vehicles and commercial vehicles) for an additional premium of Rs 750 per year (annual insurance policy). This will now be part of the mandatory insurance cover that is a must for all vehicle owners.
This insurance and cover for vehicles have to be included in both comprehensive and third-party insurance for cars and all other vehicles. However, IRDAI further says that respective companies will decide on how to price long-term policies. Currently, it is compulsory for all insurers to provide long-term third-party liability cover of 5 years for bikes and scooter insurance and 3 years for cars and SUVs.
The Madras High Court in October 2017 had ordered IRDAI to hike the personal accident cover then Rs 1 lakh to at least to Rs 15 lakh. The circular further said that the cover is provided to the owner-driver and this includes him travelling as a co-driver. To this, the United India company accepted the Madras High Court's order and said that it was indeed very unfortunate for vehicle owners who also end up paying the premium for risks confronted by the third-party and is not getting any adequate compensation in return. Further, the court also directed the insurance company to provide a higher personal accident cover for the owner of the vehicle who is also the driver.



More in Electronics & Gadgets
Maruti Suzuki XL6 launched at Rs 9.80 lakh

6-seater MPV is positioned as a premium alternative to the Ertiga and will be sold from Maruti's Nexa dealership chain.

Recently posted . 9 views

Your smartphone is making you stupid and this study is proof!

We check our smartphones every waking minute. But did you know that your dalliance with this gadget can seriously impact your problem-solving ability?

Recently posted . 8 views

Hyundai Grand i10 Nios launched: Top five highlights

Post much wait, Hyundai has finally launched the Grand i10 Nios in India. The feature-loaded hatchback is available in four variants – Era, Magna, Sportz an...

Recently posted . 14 views

Samsung Galaxy Note 10, Galaxy Note 10+ With S Pen Support Launched in...

Samsung Galaxy Note 10 price in India is set at Rs. 69,999, whereas the Samsung Galaxy Note 10+ price starts at Rs. 79,999.

Recently posted . 9 views

Here's what the Redmi Note 8 Pro will look like

Xiaomi's sub-brand Redmi is busy working on its next mid-rangers, the Redmi 8 series. The Redmi 8 itself was spotted in some hands-on images earlier today, an...

Recently posted . 12 views

The Quantum Revolution Is Coming, and Chinese Scientists Are at the Fo...

China’s drive to dominate a field with big economic and military applications outpaces some US strides.

Recently posted . 10 views



Thought of the day

🙏‼मीठा मोती ‼🙏 पैर में से काँटा निकल जाए तो.. चलने में मज़ा आ जाता है, और मन में से अहंकार निकल जाए तो.. जीवन जीने में मज़ा आ जाता है.. चलने वाले पैरों में कितना फर्क है , एक आगे है तो एक पीछे । पर ना तो आगे वाले को अभिमान है और ना पीछे वाले को अपमान । क्योंकि उन्हें पता होता है कि पलभर में ये बदलने वाला है । " इसी को जिन्दगी कहते है "? "खुश रहिये मुस्कुराते रहिये ‼‼ सुप्रभात ‼‼ 🌹 आपका दिन मंगलमय 🌹