Third-party vehicle insurance premium may be increased
NEWDELHI: Third-party insurance premium for cars, two-wheelers and transport vehicles may go up with the regulator Insurance Regulatory and Development Authority of India (Irdai) proposing substantial increase in premium rates for the current fiscal year.
The Insurance Regulatory and Development Authority of India has proposed to increase the motor third party (TP) premium rates for cars below 1000cc to ₹2,120 from the existing ₹1,850 for the fiscal 2019-20.
Similarly, for cars falling between 1,000cc and 1,500cc also, premium is being proposed to be increased to ₹3,300 from the existing ₹2,863.
However, for luxury cars (with engine capacity of over 1,500cc) no change in third party premium has been proposed from the existing ₹7,890.
Normally, the third party rates are revised from April 1. However, this time, the Irdai had decided to continue with the old rates until further order.
Now, the regulator has come out with a draft of new rates for third party premium for the current financial year.
It has sought comments from stakeholders on the proposed rates till May 29.
According to the draft, third party for two-wheelers below 75 cc is proposed at ₹482, up from ₹427.
Hike has also been proposed for those between 75cc and 350cc. However, no rate hike has been proposed for superbikes (exceeding 350cc).
Also, no change has been proposed in the single premium rate —three-year for new cars and five-year for new two wheelers.
The Insurance Regulatory and Development Authority of India has also proposed a discount of 15%, on motor third party premium rates for electric private cars and electric twowheelers.
It also does not propose to raise third party premium rates for e-rickshaw. However, the rate could go up in case of school buses. Rate increase has also been proposed for taxis, buses and trucks. The premium on tractors may also up.
Insurance Regulatory and
IRDAI HAS PROPOSED TO INCREASE THE MOTOR THIRD-PARTY PREMIUM RATES FOR CARS BELOW 1000CC TO ₹2,120 FROM ₹1,850 FOR FY20
Development Authority of India said the data provided by the Insurance Information Bureau of India (IIBI) has been used for arriving at the motor third party premium rates and the claims paid data in respect of each of the accident years starting from the year 2011-12 up to 2017-18 has been considered. Also, gross written premiums for the 2011-12 to 2017-18 have been considered, it added.