New cars and bikes will become cheaper in India from August, know why.

Best Time To Buy Cars and Bikes. 

Key Points. 

The new rule will come into effect from August 1 and will effectively reduce the on-road price of new four and two-wheelers in the country.

The customer will now be required to purchase third-party motor insurance, which will be for a longer period.

Detailed

Buying a new car or two-wheeler will become slightly less expensive in India from August. The Insurance Regulatory and Development Authority of India (IRDAI), which controls and oversees the development of the insurance industry, passed a new rule in June under which it would not be mandatory to purchase a long-term vehicle insurance (long-term vehicle insurance) package policy.

The new rule will come into effect from August 1 and will effectively reduce the on-road price of new four and two-wheelers in the country.

Currently, the Long Term Comprehensive Policy for four-wheelers is available for three years, while the policy for two-wheelers is mandatory for five years. From August 1, these rules will be scrapped and customers will not be required to pay for three or five years for a long-term policy in a joint format. This is expected to reduce the overall on-road price of the new vehicle.

Now instead of the three / five-year compulsory insurance purchased earlier, a customer will now have to buy third-party motor insurance, which will be for a longer period. Third-party car insurance policy has been made mandatory for car buyers for three years. Whereas for new two-wheeler buyers, the third-party two-wheeler insurance policy has been made mandatory for five years.

As far as vehicle insurance is concerned, the customer will have two options. First, there will be an option to purchase a composite policy that includes third-party insurance as well as damage to own vehicle. The other option would be just own vehicle damage insurance policy.