Motoring change: Third-party liability to remain a sore point for insurers

Proposed motor vehicle law removes cap on liability, sets minimum compensation of Rs5 lakh for death

Provisions regarding third-party claims in the Motor Vehicles (Amendment) Bill, 2016, have given some relief to policyholders, but general insurance companies are largely unhappy with the proposed rules.

To add to insurers’ dismay, the Insurance Regulatory and Development Authority of India (Irdai) on Monday revised downwards the premiums for cars and motorcycles with more powerful engines, weeks after hiking these in March. The hike in premiums for cars over 1,000 cubic centimetres (cc) and motorcycles over 150cc will now be 28 per cent, which was raised by 40 per cent earlier. For less powerful vehicles, the premiums remain same as