Purchase of cars, two wheeler to become expensive as IRDAI mandates 3rd party insurance starting today

<strong>New Delhi: Purchasing a car or a two-wheeler is likely to get expensive from Saturday, as the Insurance Regulatory and Development Authority has made it mandatory for a purchaser to get a third party insurance, following Supreme Court order.</strong> The three-year third party insurance is going to cost Rs 5,286 for cars with engine capacity less than 1,000cc; whereas for cars with capacity between 1,000 and 1,500 cc it would cost Rs9,534. The cars with even engine higher engine capacity are likely to burn even a bigger hole in your pockets as their insurance would cost around Rs 24,305. For two-wheelers, the 5 year third party insurance for vehicles with engine capacity under 75cc would cost Rs 1,045, Rs 3,285 for 75-150cc, Rs 5,454 for 150-350cc and Rs 13,034 for engines exceeding 350cc. As per the Motor Vehicles Act, third-party insurance is mandatory. As per the court order, it is mandatory for all general insurance companies to issue a three-year third party insurance cover for new cars and five-year third party insurance cover for new two-wheelers as a separate product.

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