Motor Vehicles Act: Steep fines make insurance important
Expect premiums to go up or introduction of a co-pay option for third-party damage
Priya Nair |
Last Updated at August 16, 2016 23:31 IST
It’s a new, and a much tougher regime for violators of traffic rules. With the new Motor Vehicles Act increasing compensation substantially from all offences and accidents, car and bike owners need to arm themselves with substantially more insurance cover.
Those without a valid insurance policy might have to shell out Rs 5,000 compared with Rs 500 earlier in case of an incident. “In the two-wheeler segment, 80-85 per cent (of the vehicles) are uninsured. The higher penalty will encourage more two-wheeler owners to buy insurance,” says Punit Sahni, head (product ...
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First Published: Tue, August 16 2016. 22:38 IST