Starting August 1st, buying a new car or bike has become cheaper in India.
And the reason is that a critical rule in the insurance laws for new vehicles has been changed.
Find out more about this, right here!
New Cars, Bikes Have Become Cheap: Find Out Why?
The Insurance Regulatory and Development Authority of India (IRDAI) has brought in a new rule for the insurance related law, for new cars and bikes.
Under this new rule, cars and bikes which are being bought first time need not opt for long-term vehicle insurance.
This new rule comes into effect starting August 1st.
This means that if you are buying a new car or bike after August 1st, then you are not required to take long term insurance policy for the same, and thus, the overall cost associated with the vehicle will come down drastically.
New Insurance Rule For New Cars, Bikes: What Has Changed
Under the old rule for vehicle insurance, every new 4-wheeler was mandated to opt for three years vehicle insurance, wherein every 2-wheeler was mandated to opt for 5-years of insurance.
Starting on August 1st, this changes.
Now, the new car or bike owner will need to mandatorily have a 3rd party insurance for their vehicles, although for longer duration.
Under the new rules, new car owner will need to have mandatory 3rd party insurance for 3-years, and new bike owners need to have mandatory 5-year long 3rd party insurance.
If a new vehicle owner wants to opt for vehicle insurance, then there are now options:
- Either the buyer can go for a combo-package, which will include 3rd party insurance and own-damage
- A standalone own-damage vehicle insurance for a longer duration.
Overall, with the new insurance policy from The Insurance Regulatory and Development Authority of India (IRDAI), vehicle owners have got more options and more choice, and will be free to choose their own vehicle’s insurance, as per their specific needs.
We will keep you updated, as more details come in.