Every year third-party insurance premium rates are increased by 10-30% but this year consumers have been relieved with no change in premiums for the new financial year.
"It is hereby notified that by virtue of powers vested in the Authority under Section 14 (2) (l of IRDA Act, 1999, the Irdai hereby extends the validity of premium rates set out in the aforementioned order beyond March 31, 2019, until further notice. In other words, insurers shall continue to charge the rates currently being charged for Motor Third Party Liability lnsurance Cover from April 1, 2019, until further orders," Irdai said in its order.
Overall the motor insurance is made up two insurance types i.e. own damage and third-party insurance. The third-party insurance cover is mandatory and for it the premium is fixed by the IRDAI annually.
In the last fiscal, for the new vehicle it was mandated to have three-year car insurance and five-year bike insurance for third-party liabilities.