Buying a car, bike gets costlier from today

Insurance Regulatory and Development Authority of India has made it mandatory for car and bike buyers to purchase at least three years of third-party insurance for cars and at least five years of third-party insurance for bikes. Third-party insurance is the most basic kind (usually the cheapest) of motor insurance. It does not cover the damage done to the car but makes sure that any third person involved in an accident is covered by insurance.

This move will ensure that the buyer does not operate on the roads without a valid insurance. While the car/bike owner will end up paying more, this move means that the damage done to the third party is covered for at least three or five years, depending on the vehicle. From Sept 1, while purchasing a car, the buyer will now have to be aware of the different permutations and combinations of the types of insurance.