19 November 2015
With IRDA (Insurance Regulatory and Development Authority) making third party insurance mandatory for battery operated three wheeled vehicles, the chances of an accident victim getting compensation have risen.
CHENNAI: With IRDA (Insurance Regulatory and Development Authority) making third party insurance mandatory for battery operated three wheeled vehicles, the chances of an accident victim getting compensation have risen.
After e-carts and e-rickshaws came under the Motor Vehicles Amendment Act 2015, the insurance regulator has stepped on the gas by bringing in e-rickshaws (not exceeding 4,000 watts) under third party motor insuranc.”Increase in number of vehicles would can in turn mean increase in road accidents, prompting a need of third party insurance,” executive director of HDFC Ergo General Insurance, Mukesh Kumar said.
There are around one lakh battery operated three wheelers currently plying on Indian roads and majority ferry passengers. The insurance regulator has indicated that e-rickshaws that carry up to six passengers would have to bear a premium of 1,066 plus charges based on licensed capacity of the vehicle.
Officials also state that some concessions have been provided to battery operated three wheelers to ensure faster compliance.
In any case, penetration of third party motor insurance in three wheelers in much better than that in two wheelers segment.
As per industry estimates, over 80% of regular three wheelers in India have some form of motor insurance whereas in cities like Chennai more than 60% of two wheelers and motor cycles currently don’t have any insurance, even third party insurance, which is compulsory.
“Three wheelers are more liable to police checks and are used for commercial purposes, while two wheelers are mostly for personal use,” Narayanan said.
Source: ET Auto.com