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If you are thinking of getting a new car, wait: these rules are changing from August 1st, Over 10 million people will get benefit.

If you are thinking of getting a new car, wait: these rules are changing from August 1st, Over 10 million people will get benefit.


 The rules attached to car-bike insurance are changing from the first of August 1st.  The Insurance Regulatory and Development Authority of India (IRDA) has issued a notification in this regard.  If you are thinking of buying a new car, wait until August 1st.  Because, you will benefit.  Under the new rule, you will get the benefit of the large amount currently spent on car insurance.

 No need to take 3-5 years insurance cover
 The IRDA said in a notification that from August 1, 2020, third party and Own Damage insurance for new vehicles, which are to be taken for 3 to 5 years, will not be required in any way.


 This rule was implemented in the year 2018
 Earlier, the IRDA had issued a notification dated August 28, 2018, taking out three-year third party insurance for new cars and five-year third-party insurance for two-wheelers from September 1, 2018.  Long term means five years for a two-wheeler and three years for a four-wheeler.  Insurance companies then announced plans with long-term packages.  Also includes third party and on damage cover.

 What is third party cover and on damage cover
 In the event of an accident, a motor insurance policy gives you two main types of cover.  Third party cover and on-demand cover.  Under the Motor Vehicle Act, any vehicle owner is required to take out third party insurance.  The insurer is the first party, the insurer is the second and the third party is the one who suffers the loss due to the insurer.  The party claims for damages and the insurance policy covers its losses.  Now, the IRDA has said that in view of the long-term policy performance, it has been decided that such a policy will not be binding from August 1.

 It will be cheaper to buy a car and a bike
 A change in motor vehicle insurance could make buying a new car and bike a little cheaper from next month.  It will benefit millions of people in the Corona period.  The long-term package policy makes it expensive for people to buy a new vehicle, the IRDA said.

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