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Third-party motor insurance premium will be hiked from April 1

New Delhi: The premium rate of third-party motor insurance will increase in the country from April 1. The Union Ministry of Road Transport and Highways (MoRTH) in association with the Insurance Regulatory and Development Authority of India (IRDAI), has released a proposal for this on March 4.

According to the proposed revised rates, premium for private cars with 1,000 cubic capacity (cc) will be Rs  2,094. At present the rate is  Rs 2,072. The rates for private cars with 1,000 cc to 1,500 cc will attract rates will be Rs 3,416. Now the rate is Rs 3,221. While owners of car above 1,500cc will see a premium of Rs 7,897 compared to Rs 7,890.

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Two-wheelers over 150 cc but not exceeding 350 cc will attract a premium of Rs 1,366 and for two-wheelers over 350 cc the revised premium will be Rs 2,804. Premium for commercial vehicles used for carrying public goods will be from  Rs 16,049 to Rs 44,242, depending on the gross vehicle weight. Premium for commercial vehicles that are being used to carry private goods will be between Rs  8,510 to  Rs 25,038, depending on the gross vehicle weight.

A discount of 15% is proposed for electric private cars, electric two-wheelers, electric goods-carrying commercial vehicles and electric passenger-carrying vehicles. Hybrid electric vehicles will get a discount of 7.5%.

The third-party insurance premium was hiked last time in 2019. The revision of premium was put on hold for the last two years due to Covid-19 pandemic. Earlier, third party rates were revised by the Insurance Regulatory and Development Authority (IRDAI). This is also for the first time that the road transport ministry is revising  the third party rates in consultation with the insurance regulator.

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