Higher compensation for third-party accidents may result in better premiums

The introduction of a universal amount will result in faster compensation to the families of victims, and they will be saved the hassle of going to the courts

The Ministry of Road Transport and Highways recently amended the compensation for third-party accidents. The government has notified that the compensation for third-party accidents will be increased to Rs 500,000 for death and Rs 50,000 for permanent disability. The changes came into effect from May 22, 2018. Policy holders will receive compensation according to the new rules for any third-party claims made on or after May 22, 2018. 

Earlier, for third-party death the minimum amount payable was Rs 50,000. According to the notification, the compensation payable now will be Rs 500,000 for fatal accidents resulting in death. For fatal accidents