The premium for third party insurance for motor vehicles or this component in the comprehensive insurance that you purchase will increase by at least10-15%, once amendments to the Motor Vehicles Act get passed from both Houses of Parliament.
Third party insurance accounts for about 30% of comprehensive insurance.Only third party insurance is mandatory . The primary reason for this is the substantial increase in compensation for hit-and-run cases that has been proposed in the amendments. The present norm of Rs 25,000 compensation will be increased to Rs 2 lakh in case of death, and for grievous injuries, the compensation proposed is Rs 50,000 against the present Rs 12,500.
There is provision to pay up to Rs 10 lakh compensationin road fatalities where the vehicle and the owner are identified. In case of grievous injuries, the compensation would be up to Rs 5 lakh.The proposed amendment will see insurance companies pay compensation within 30 days to settle cases.
“This is the minimum compensation we have proposed and people must get compensation quickly . But if families are not satisfied with the amount, they can approach the tribunal for higher compensation,“ road transport minister Nitin Gadkari told TOI. He said the proposal aims to provide quick relief to the next of kin of those killed or grievously injured in road crashes.
Source- Times of India
Date- 8th August 2016