New Insurance Norms: How Much Extra You’ll Have to Pay Across Segments

|
Added in: News

Starting September 1st, buyers of new cars and two-wheelers will have to buy insurance upfront for at least three and five years, respectively. The new rule was made on July 20th, 2018, in the courts attempt to provide some relief to victims involved in motor vehicular accidents. It was noted that about 18 crore vehicles utilized the road out of which only about 6 crore vehicles had the mandatory third party insurance. Which means about 66% of vehicles are out on the road without any third party insurance cover. The victims of these accidents, including those who have passed away, their legal representatives were unable to receive any compensation because their vehicles were not insured.

benelli-tnt-600i-accident-delhi-crash

Long-term premium payments will raise the initial outgo on new vehicles, but will at least save consumers the hassle of yearly renewals. To put that into perspective, buyers looking to buy a motorcycle say above the 350cc segment will now have to pay Rs. 13,000/- as compared to the previous Rs. 2300/-. Since the Supreme Court of India has announced that five-year insurance, it has seen prices from a lot of manufacturers fluctuate, some even increasing by a considerable amount. With this in mind, let us discuss the effects of this change on motorcycles from different segments.

Honda Activa 5G Pearl Spartan Red

Honda Activa 5G – The Activa is a scooter that has been in India for almost 2 decades and continues to remain a favorite for the Indian consumer. Previously the Activa 5G would cost you about Rs. 64,500/- on-road, but now after the changes, it costs somewhere between Rs. 68,675 – Rs. 70,766/- on-road.

2018 TVS Apache RTR160 4V

TVS Apache 160 4V– The Apache 160 takes a lot of inspiration from it’s elder siblings when it comes to styling and ergonomics. This motorcycle sees itself pitting up against the likes of the Bajaj 160NS, Yamaha FZ S and Honda CB Hornet 160R. Sitting in a sweet spot of motorcycling, the Apache 160 comes with both single disc and double disc options. The single disc costs Rs. 96,000/- while the double disc would set you back by Rs. 98,000/-. However, due to the current insurance norms, it now costs Rs. 1,04,500/- for the single disc while the double-disc costs Rs. 1,08,500/- on-road.

Bajaj Pulsar 200NS

Bajaj Pulsar 200NS – The Pulsar 200NS was launched in the year 2012, and since has been quite a successful addition to Bajaj’s motorcycle line up. The 200NS earlier could be bought for a price of Rs. 1,17,000/- for the standard model while the ABS model cost Rs. 1,31,000/- on-road. After the government mandating the new norms, prices have gone up to Rs. 1,22,000/- for the standard while the ABS is available for Rs. 1,35,000/- on-road.

KTM 390 Duke White

KTM Duke 390 – The Duke 390 needs no introduction, it made its debut in the year 2013 and the Indian market hasn’t been the same ever since. Originally launched for a price of Rs. 2,10,00/- on-road, this motorcycle has now reached its 2nd generation. The new Duke 390 saw a significant increase in price but justified the price of Rs. 2,82,000/- on-road with all the added equipment and style in brought to the table. However, with the new five-year insurance compulsion, we see a price increase to Rs. 2,95,000/- on-road.

2019-Kawasaki-Ninja-ZX-10R-3

Kawasaki Ninja ZX10R – The Kawasaki Ninja ZX10R is probably one of the most popular liter-class machines in its segment. Given the huge price cut off this now CKD machine is being offered with, it’s certainly a bargain for buyers looking to buy a motorcycle of this caliber. The Kawasaki Ninja ZX10R was being offered for a price of Rs. 16,48,000/- on-road, but due to the new set of rules, the price has gone up by a mere Rs. 12,000/- which now sets it at Rs. 16,60,000/- on-road.

 

,