Third party insurance only covers the damage done by your vehicle to other vehicles or property and does not cover accidents, theft or damage to your vehicle.
The Insurance Regulatory and Development Authority of India (Irdai) has floated a draft notification of Motor Third Party Premium Rates for the Financial Year (FY) 2022-23. If accepted by the stakeholders of the industry, the new Third Party Premium Rates will be effective from April 1, 2022. Earlier, the 3rd party premium rates were not revised for FY 2020-21 and FY 2021-22, and the rates for FY 2019-20 were continued.
The third party insurance tariffs are controlled by IRDAI for which it has been notifying the rates since 2011. Third party insurance only covers the damage done by your vehicle to other vehicles or property and does not cover accidents, theft or damage to your vehicle.
Read More : Car, bike owners, alert! Centre proposes hike in third-party motor insurance premiums
The ‘own damage’ portion is the optional coverage that may or may not be opted for by the owner of the vehicle. It refers to the damage or loss caused to the insured’s vehicle due to any of the insured perils defined in the policy. Among other things, it includes loss or damage due to fire, explosion, accidents or while in transit by road or rail, and even burglary and theft.
‘Third party’ and the ‘own damage’ cover, taken together, is referred to as comprehensive coverage. A comprehensive cover policy insures the vehicle against any risk arising out of theft or damage to the vehicle, death of the driver and/or passengers in the vehicle during an accident, and damage caused by the vehicle to other people or property. Ideally, one should opt for the comprehensive insurance policy for complete coverage.
Motor Third Party premium rates (proposed) for private cars and two-wheelers (Financial Year 2022-23,) effective April 1, 2022 are:
A discount of 7.5% on Motor TP premium rates for Hybrid Electric Vehicles is proposed. This will be an incentive to use environmentally friendly vehicles.
