ATTENTION vehicle buyers! Know THIS about third party motor insurance

Representational Image (Reuters)

New Delhi: In a huge relief for vehicle users, third party motor insurance is not likely to increase from April 1. According to sources, this will be the second consecutive year when the third party motor insurance will not be increased. 

Sources claimed that the suggestions for proposed rate hikes have not been sought yet and the Insurance Regulatory and Development Authority (IRDAI) is not thinking to put further burden on the users, keeping in view the high fuel prices.

This will be a relief for the people who are planning to buy a new vehicle, as the effect of a long term premium is very high.

Notably, the premiums were proposed to increase from 10% to 20% for FY20-21, but rates were not increased due to COVID-19 outbreak.

As per reports, the accidental claims of companies have also decreased slightly due to COVID-19 induced lockdown.