Centre proposes hike in third-party motor insurance premium from next fiscal

Buying a car or two-wheeler is likely to become more expensive from April 1 as the Union Road Transport Ministry has proposed an increase in the premium for third-party insurance--for both new vehicles and renewals. The revision comes three years after the rates were last revised.

According to the draft notification, private cars with 1,000 cubic capacity (cc) engines will attract a premium of Rs 2,094 compared to Rs 2,072 in 2019-20.

Similarly, 1,000 cc to 1,500 cc will attract a rate of Rs 3,416 compared to Rs 3,221, while owners of cars above 1,500 cc will see a premium of Rs 7,897, compared to Rs 7,890. Two-wheelers over 150 cc but not exceeding 350 cc will attract a premium of Rs 1,366; for two-wheelers over 350 cc, the revised premium will be Rs 2,804.