The recent changes in motor insurance policy for the victims as well as the vehicle owner in case of a mishap is a positive but it has led to significant increase (10-19%) in the cost of acquisition of two-wheelers. The policy changes are brought on by un-safe road conditions in India over the years, which culminated in judicial directions by the Hon’ble SC and HC of Madras respectively to a) increase in third party cover (TPC) from one year to five years and; b) increase in personal accident cover (PAC) from Rs 1 lakh to Rs 15 lakhs.
In the past OEMs used to offer various promotional offers giving free insurance to buyers on select models-select region basis, which were discontinued from September 2018. However, with select OEMs introducing innovative offers recently – covering part of the insurance cost- other OEMs may follow suit.
