NEW DELHI: After holding the hike in insurance premium till election, the Insurance Regulatory and Development Authority of India (IRDAI) has proposed to increase third-party insurance premium for cars, two-wheelers for the current financial year, while keeping premium for luxury cars unchanged.
As per the proposal, IRDAI will increase the Motor Third Party (TP) premium rates for cars below 1000 cc to Rs 2,120 from the existing Rs 1,850 for the fiscal 2019-20. Similarly, for cars falling between 1,000 cc and 1,500 cc also, premium is being proposed to be increased to Rs 3,300 from the existing Rs 2,863.
Interestingly, no change in premium has proposed for luxury cars with engine capacity of over 1,500 cc. According to the draft, third party insurance premium for two-wheelers below 75 cc is proposed at Rs 482, up from Rs 427. Hike has also been proposed for those between 75 cc and 350 cc. However, no rate hike has been proposed for superbikes exceeding 350 cc. Rate increase has also been proposed for taxis, buses, trucks and on tractors.
However, no change has been proposed in the single premium rate — three years for new cars and five years for new two-wheelers. It has also proposed a discount of 15 per cent, on Motor TP premium rates for electric private cars and electric two-wheelers.
It also does not propose to raise TP premium rates for e-rickshaw. However, the rate could go up in case of school buses.
Typically, TP rates are revised from April 1. However, the Irdai had decided to continue with the old rates this time until further order.