Two-wheeler buyers in India have to pay nearly 10% of the vehicle’s price upfront towards insurance premium, while car-buyers are seeing the cost of motor cover double from last month. The premiums have jumped up significantly as a result of court orders. The first makes purchase of a long-term, third-party insurance cover mandatory, while the second forces vehicle owners to buy an Rs 15 lakh personal accident cover, which is priced exorbitantly by insurers.
Any person who buys a two-wheeler must purchase a five-year, third-party cover, and an annual personal accident cover. This is in addition to a comprehensive cover that is sold at the time of purchase of the vehicle. As a result, for a 150cc bike costing Rs 75,000, the insurance premium would be Rs 7,600. In the case of cars, the owner must pay premium for three years of third-party insurance and an additional Rs 750 towards a personal accident cover.
For cars, a three-year, third party insurance and additional personal accident cover is in addition to the comprehensive cover sold by the dealer. For the buyer of a car with engine capacity of over 1,000 cc, the payout towards insurance has doubled to nearly Rs 20,000 from Rs 10,000 earlier.
