Buying cars and bikes to get costlier from September 1, here is why
Buying cars and bikes to get costlier from September 1, here is why Purchasing a car and a two-wheeler is going to get expensive from September 1, 2018. The reason behind this is the long-term third-party insurance policy has been made mandatory by the Irdai following a Supreme Court order. The three-year third-party insurance is going to cost ₹ 5,286 for cars with engine capacity of less than 1,000 cc. In case of two-wheelers, In case of two-wheelers, the five year-third party insurance would be costing around ₹ 1,045 for vehicles with engine capacity below 75 cc, ₹ 3,285 (75-150 cc), ₹ 5,453 (150-350 cc). It is compulsory to take long-term third party insurance with purchase of any vehicle from September 1. This is expected to increase the cost by Rs 24,000 for a new car and Rs 13,000 in case of a new bike. ALso Read: Apple to Reveal the Next-Generation iPhones on September 12 As per the IRDAI (Insurance Regulatory Development Authority of India) circular, all general insurers have been asked to abide by the changes in third party insurance in accordance with the Supreme Court orders. Insurance companies will facilitate covers for 3-5 years, which can also be offered bundled with third-party insurance and own damage insurance. Third party insurance is a kind of liability insurance where an insurance company helps you protect yourself from the claims of a third party arising due to a damage caused by you to the their property. Yes, there is a solution to save some taxes while you take these insurance policies. The premium paid on all general insurance policies, including liability insurance, can be claimed as expense allowance under the Income Tax Act, 1961. Therefore, this claim will help you reduce your total taxable income. However, this benefit is only available if you bought the vehicle for business or professional use.
