Riding a bike is a convenience for some and a passion for others. But this ride may soon become more daunting for some, especially those who may be looking for a new, affordable two-wheeler vehicle.
Following the notification of a draft proposal by the government planning hikes in third-party bike insurance, the prices for insurance have been increased as of the 1st of June 2022. After the plan was approved, owners of motor vehicles face an increase in their third-party liability insurance premiums of up to 21%. Normal practice calls for re-evaluating insurance premium rates once a year, but the government has held off on doing so for the past two years. That may explain the rise in June.
The relevant parties have indicated that they are willing to comply with the government’s plan for an increase in the premiums for auto insurance beginning on June 1st. It is now more expensive than it has ever been to insure your car or two-wheeler due to a proposal by the Ministry of Road Transport that has since been approved. According to the proposal, third-party motor insurance premiums have increased by up to 21%, making it more expensive than it has ever been.
Since the beginning of the COVID-19 outbreak two years ago, there has been no change to the way that insurance rates are calculated. The most recent revision took place in 2019–20, and the ministry’s suggested increase in bike insurance, which is very significant, could be justified by the fact that it was done in that year.
It is important to be aware that the Insurance Regulatory and Development Authority of India (IRDAI) modifies the premium rates for third-party insurance policies on an annual basis.
Since vehicle owners are required by law to have third-party insurance, the increased cost of that coverage will be passed on to them in the form of higher premiums. In the event of a collision on the road, you are required to have third-party liability insurance, which pays for the damages caused to other people.
