NEW DELHI: Automobiles are set to become expensive from June 1, as the government has proposed a steep rise in third-party insurance rates. The raise is coming after a gap of three years. According to a notification issued by the Ministry of Road Transport and Highway, three-year single premium for new private cars have been hiked by 1-23%.
The mass segment where engine size is less than 1000c, the premium has been hiked by 23% to `6,521. Cars, which have engine size between 1000-1500 cc, the premium is going up by 12% to 10,640, while for cars that have engine size of over 15,00 cc the premium is raised by only 1% to `24,596.
For two-wheelers, the three-year single premium hike is even steeper. For two-wheelers, whose engine size is less than 75cc, the premium has been hiked by a whopping 177% to Rs 2,901. For two-wheelers, with engine size between 75cc-150cc, the premium goes up by 17% to Rs 3,851. This segment accounts for majority of the two-wheeler market. The mass premium segment with engine size between 150-350cc, premium has been raised by 35% to Rs 7,365 and with engine size over 350cc, the premium has gone up 16% to Rs 15,117.
The government has also decided to raise premium on electric vehicles. For electric cars with battery size of less than 30KW, premium has been hiked by 27% to Rs 5,543, for e-cars whose battery size is over 30KW but less than 65KW, premium has been raised by 11% to Rs 9,044, and for cars with battery size more than 65KW, premium is raised by 1% to Rs 20,907.
For electric two-wheelers, the premium has been raised by up to 177%. Under 3KW battery size e-2Ws, premium has been hiked by 177% to Rs 2,466; between 3KW but not exceeding 7KW, premium has been hiked by 17% to Rs 3,273; over 7KW but under 16KW, premium has been raised by Rs 355 to Rs 6,260 and for e2W over 16KW battery size, premium is up by 16% to Rs 12,849.