The Indian government is planning to increase the rates of third party vehicle insurance, in cases of road accidents, severe injuries, and deaths. As per the reports, the increment will hike to the 50% from the previous rate.

The proposal was sent to the Indian government via Insurance Regulatory and Development Authority of India (IRDAI). This policy will be valid for all the vehicles' category.

IRDAI upgrades the insurance rates every year, this revision is carried out annually on the basis of a number of insurance claims and the loss ratios of insurance companies. Last year, insurance amount was up by 40% for the cars which give out the displacement of 1,400cc and less.

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