Purchasing a new car will get slightly costlier from 1 September 2018, as all new cars sold in India will now come with a mandatory three-year third-party insurance. Until now, the standard one-year third-party insurance was renewed every year with either the comprehensive and zero-dep insurance, or independently.
Third-party insurance covers any damage inflicted on others as a result of your fault in the case of an accident. In a country like ours which witnesses a staggering 400 deaths each day, third party insurance ensures victims of road accidents are not left vulnerable.
While getting three-year third-party insurance is mandatory now for all new cars, buyers can opt to get it separately from the regular comprehensive or zero-dep cover too. That way, the comprehensive and zero-depreciation covers could still be renewed annually. The third-party cover will also be renewed annually, but buyers will have to pay the premium for the next two years in advance so that the car remains insured with a third party cover for three years in case the owner forgets to insure his vehicle for the next couple of years.
Third-party premium for cars with engine capacity not exceeding 1000cc, such as the Maruti Suzuki Alto, Datsun redi-GO and Renault Kwid, costs Rs 1,850 currently. So paying a three year premium in one go will cost you around Rs 5,550 — Rs 3700 extra. As for cars with engine capacity ranging between 1000cc to 1500cc, the annual third party premium currently charged is a uniform amount of Rs 2,863. So the extra amount spent on buying such cars would be slightly over Rs 5700. Cars with engines bigger than 1500 cc, attract a third party insurance cover of Rs 7,890 per annum. Such vehicles will become costlier by just over Rs 15,500.
