Motor premiums rising sharply

As of April 1, 2012, the motor third party liability insurance, including motorcycles, has witnessed a substantial increase of its premium rate. This rise ranges between 6% and 40% according to the vehicle class. The insurance regulatory commission (IRDA), which is behind this change, has stated that the new rates are likely to be revised at the end of each fiscal year. IRDA has, upon the insurers’ request, removed the motor pool established in 2007 and designed for customers who failed to find an insurer for their vehicle.