If you are planning to buy a car or a motorcycle or bike at the beginning of the festive season, then this is going to be an expensive deal. Whereas auto companies are giving discounts up to Rs 1.5 lakh through dealers, on the other hand, they will have to spend more money on insuring them.
This is because the Insurance Regulatory Authority (IRDA) has made mandatory third party insurance. With this, people will have to spend more than 45 thousand rupees to buy a new car.
Three years for the car, five years for the bike
According to the new rules made by IRDA, it is mandatory to purchase a third party insurance for three years for the car and for buying a new bike. This rule will apply to new trains purchased after 1 September 2018. Though the old trains will not be affected by this rule. But by this rule, the customers who buy cars have a lot of burden on the pocket.
Premium cheap for three years
If the customer buys a car less than 1000 cc (Alto 800), then he had a one-year insurance of Rs 10,541. But now you have to spend Rs 17,132 for this. At the same time, three years of insurance costs Rs 31,623, for which now it will have to spend Rs 30,142.
That is, it will save up to Rs 1400 directly. Along with that, people will also have to take personal insurance cover. However, this benefit will not be applicable for insuring the vehicles of more than 1000 cc. Customers will have to spend 45 thousand rupees to get insurance cover on trains more than 1000 cc.
1.5 million claim amount
With this, IRDA has increased the claim amount of personal insurance cover from Rs 2 lakh to 15 lakh rupees. For the first two-wheeler vehicles, the claim amount was fixed at one lakh rupees and two lakh rupees on four-wheeler vehicles. For this, the customers would be charged 50 or 100 rupees (tax free) as a premium. Now this personal insurance cover will have to be taken by all the vehicle owners and the premium of Rs 750 will also be paid.
Long term insurance is beneficial
Now the implementation of these new rules will take long-term insurance to be beneficial for the vehicle owners. One of the disadvantages would be that the one-third of the wage of the people who got the benefit of the rebate on buying a car, would now be spent in insurance.