BENGALURU: The Insurance Regulator and Development Authority has taken steps forwards in favor of vehicle owners. It has authorized companies to lift third party motor insurance premiums in four categories which are private vehicles, goods carrying vehicles, two wheelers and commercial vehicles.

The regulator has advised to raise the premiums for private car and two-wheelers up to 16 percent to 30 percent by this April whereas the insurance premium caps for the commercial vehicles have already been increased by 8 percent to 20 percent.

IRDA sets third party motor tariffs and makes it a mandatory law for all owners of the vehicle. With these laws, it intends to provide protect the vehicle owners against the compensation which can be claimed in unfortunate situations like accidents.

Along with the rise in renewal rates, the buyers of big cars will be now charged with a 822 more and if it is a mid size car then they will have to just pay 266. For the customers who are expecting better service and differentiation on motor insurance might need to wait till the insurers are free to price the product as per risk perception.

For other covers, the insurance company is authorized to decide by its own. When an insurer or a person is injured or dies in an accident unexpectedly, the insurance company has to pay the entire amount of compensation. When a property is damaged the company is liable to pay 7.5 lakh. Even IRDA also took consumer feedback before issuing the rules so as to make it potentially better and customer friendly.

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