- Third party insurance cost to remain same
- SIAM approached IRDAI
The Insurance Regulatory and Development Authority of India (IRDAI) has decided not to revise the cost of third party insurance charges for FY2021.
This development comes after SIAM requested IRDAI not to increase the third party insurance cost due to dwindling sales in the last financial year. SIAM wanted IRDAI to retain the premium rates for the new financial year. Because if there was an increase of premium rates, the overall cost of the vehicle is bound to go up which will directly affect the sales of cars and two wheelers.
Plus, the COVID-19 pandemic has affected the entire automotive industry. The factories are shut, dealerships have been closed and there are no customers wanting to buy any vehicles. So it is important that the customers don’t see an increase in overall cost of the vehicle, especially when the market opens post this nationwide lockdown. The overall buying sentiment is bound to go down if the customers are asked to pay more.