- Insurance Regulatory and Development Authority of India(IRDAI) has released a draft notification on third-party motor insurance.Third-party insurance is the portion of an insurance policy that protects you if you’re held legally responsible for a physical injury or damage to someone else’s property.
- The notification proposes a 15% hike in third party (TP) motor insurance premium for small and medium private cars while the hike in premium varies for other categories of vehicles.
- The regulator has also offered a special discount of 15% in the premium for electric private cars and electric two-wheelers while no hike is planned in the premium for e-rickshaws.
- Further,premium for other categories of vehicles such as taxis, buses, trucks and tractors is also proposed to be increased at varying rates.
- However,there will be no change in the long-term premium rates for new cars and two-wheelers which comes for three years in the case of new cars and five years for new two-wheelers.
- The IRDAI is an autonomous,statutory body created by IRDA Act,1999.It was created based on the recommendations of the Malhotra Committee. It’s headquarters is in Hyderabad.
- The functions of IRDA includes (a)regulating the insurance industry and protects the customers (b)promotion of competition to enhance customer satisfaction and (c)lowering premiums for ensuring the financial security of the insurance sector.
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