Owners of cars and other two-wheelers may face a new setback in the new financial year. In fact, the country's insurance regulator IRDAI has proposed to increase the premium for third-party insurance of cars and two-wheelers from April 1, 2020. At the same time, this will increase the burden on the pocket of the middle class. According to the proposal of the Insurance Regulatory Authority of India (IRDAI), the third-party insurance premium for vehicles with less than 1,000-CC engine capacity from the next financial year will be Rs 2,182, with the premium currently being Rs 2,072.

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The regulator has proposed to increase the third-party premium of vehicles with an engine capacity of 1,000-1,500-CC to Rs 3,383. There is currently no proposal to increase the premium for vehicles with higher engine capacity. With this happens every year. On the other hand, if we talk about two-wheeler vehicles, then it has been proposed by the IRDA to increase the insurance premium of the Third Party to Rs 506 for vehicles with less than 75-CC engine capacity. IRDA revises the premium of third party insurance every year since 2011.

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A notification about the new rates will be issued at the beginning of the new financial year. Along with this, there are two important parts of the motor insurance policy - Third Party Insurance and On Damage Insurance. According to the Motor Vehicles Act, 1988, before any vehicle goes on the road, it is necessary to have TP insurance cover. IRDAI fixes only the premium of third party insurance, although the OD premium may vary from insurance company to insurance company.

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