As per the new rule passed by the Insurance Regulatory and Development Authority of India (IRDAI) in June early this year, the new vehicle owners can now opt for an annual own damage insurance policy from 1st August. These new car insurance rules will significantly decrease the effective on-road price of vehicles in the country. Check out how will these rules benefit the new two-wheeler and four-wheeler buyers in the country.
The new vehicle owners, before the implementation of these rules, were forced to buy a long-term comprehensive policy. From now onwards, the buyers of the four-wheelers will have to buy a third party policy which is valid for three years while the two-wheelers will have to buy a five-year-long third party policy. An OD insurance policy coverage can be bought additionally by the owner which will be valid for 12 months. It is worth noting that buying the third party insurance policy is mandatory as per the new car insurance policy rules.
This move will not only benefit the consumers by reducing the on-road prices but will also let the owners have a wide range of choices while buying an OD policy. Additionally, the buyers will now be able to change the insurance company if they are not satisfied with the service, unlike previously where they had to wait for the long-term policy to expire. The third-party insurance costs are kept uniform and all the insurance companies offer similar prices for these.
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In short, the buyers now have a choice to either pick a bundle policy which includes third-party insurance and own-damage or a standalone own-damage vehicle insurance policy in addition to a separate third-party policy.
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