Page 353 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

Development Authority (IRDA) had, in an exposure
draft, proposed a review of motor insurance
premium rates for third party liability cover.

If the draft is implemented, it would result in a 10 per
cent increase in premium for private cars and two
wheelers and up to 80 per cent for goods carriers. The
exposure draft envisages an increase of 10-80 per cent
in the premium rates of third party motor insurance," he
said.

Third party motor insurance is mandatory for all classes
of vehicles. Though regulation of the tariffs in the non-
life sector was withdrawn in 2007, third party motor
insurance continues to be regulated. The rates were
last revised in 2007.The IRDA has already taken views
of various stakeholders for effecting hike in premium
rates.

Q 6. What are the conditions for Concession for
Ans. Vehicles laid up and in what forms such connections
may be available?
Conditions for Concession for Vehicles Laid Up -
Concession for Vehicles Laid Up is available on a vehicle
which is laid up in garage and not in use for a period of
two consecutive months or more. This Concession is
available if following conditions are satisfied:

Sashi Publications - www.sashipublications.com 353

Copyright@ The Insurance Times. 09883398055 / 09883380339