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Irda Moderates Sudden Hike In The Third Party Motor Vehicle Insurance Premium Rates

IRDA has increased third-party motor insurance premium rates for the financial year 2015 and they have come into effect from April 1, 2014. Motor third party liability insurance covers all expenses in the case of damages by your motor vehicle to property or life of third person. Premium for this type of insurance coverage is controlled by regulator and not insurance company.

Every year, IRDA computes fresh third party motor premiums based on certain parameters like frequency of claims, average claim amounts, expenses concerned with servicing the motor third party business and costs of inflation for the year. For other motor vehicle insurance covers like own-damage covers that cover damages to car, premium rates are decided by insurer. Detariffing of third-party insurance cover will enable the insurance companies to decide rates as per each company experience of profitability. Keep reading to find out the impacts of deregulation of third party motor insurance from April 1, 2014.

In all other sections of Property & Casualty industry where detariffing took place and the pricing freedom was given to the insurance companies, premiums have drastically come down, thanks to great competition. Thus, there is a solid case from policy holder’s perspective to detariff the motor third party premium. If this happens, though the 3rd party premium might increase in the short run, it is expected to come down in the long run due to competition and hence advantage motor policy holders. So, while buying a motor insurance policy, a consumer should keep both the present impact and the future impact to get optimum results. As a consumer, you can even look online to compare the policies available to find the one, which can best fit your requirements after the current changes that took place.

Nowadays, you can buy your third party motor insurance online (standalone or as part of comprehensive package). The biggest benefit of buying motor insurance online is that it offers you a capability to make your purchasing decision in a convenient and simple manner. You can comfortably sit at your place, home or office and involve in process of buying motor insurance plan. Online platforms of web aggregators such as BuySmartPolicy.com (licensed by IRDA) can be used effectively to make fast comparisons between the latest features and cost of various policies as per the new hike. The online motor insurance offers facilities such as renewal reminder, tracking and secure payment gateway. You also can calculate your premium rate online and get clear picture of kind of expenses you would require to bear for purchasing the insurance plan. With online platforms, you also get multiple payment options including credit card and net banking for the advantage of the customers. It caters to need of getting trouble free insurance.

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Authored by: BuySmartPolicy
Published date: March 28 2018.

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