Status on Insurance Premium of Vehicles

Insurance Premium of Vehicles
Insurance Premium of Vehicles

PIB News Update:The Parliament has recently passed the Motor Vehicles (Amendment) Act, 2019. Section 51 of the Motor Vehicles (Amendment) Act, 2019 provides for substitution of Chapter XI in the Motor Vehicles Act, 1988 wherein section 147(2) of the Motor Vehicles Act, 1988 for “Requirement of Policies and limits of liability” reads as- “Notwithstanding anything contained under any other law for the time being in force, for the purposes of third party insurance related to either death of a person or grievous hurt to a person, the Central Government shall prescribe a base premium and the liability of an insurer in relation to such premium for an insurance policy under sub-section (1) in consultation with the Insurance Regulatory and Development Authority”. The Ministry has made operational around 60 provisions of the Motor Vehicles (Amendment) Act, 2019 with effect from 1st of September 2019 vide SO 3110(E) dated 28th August, 2019 and SO 3147(E­) dated 30th August, 2019.

This information was given by the Union Minister for Road Transport and Highways Shri Nitin Gadkari in a written reply in Lok Sabha today.

 

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