GS 2: Governance

Why in News?

Irdai proposes to increase third-party insurance premium for cars, two-wheelers

Highlights:

• Irdai has proposed to increase the Motor TP premium rates for cars below 1000 cc to ₹2,120 from the existing ₹1,850
• Irdai has proposed a discount of 15%, on Motor TP premium rates for electric private cars and electric two-wheelers

Third Party Insurance:

• In case of an accident, there are major chances of injuries and damage. Third-party car insurance covers the damage caused to other people involved in the accident.

IRDAI:

• The Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous, statutory body tasked with regulating and promoting the insurance and reinsurance industries in India
• It was constituted by the Insurance Regulatory and Development Authority Act, 1999 an Act of Parliament passed by the Government of India
• The agency’s headquarters are in Hyderabad
• IRDAI is a 10-member body including the chairman, five full-time and four part-time members appointed by the government of India.