Third-party motor insurance: Ministry of road transport proposes higher premium

Buying a new two-wheeler or four-wheeler could get expensive that is starting April one 2022 and that is because the Ministry of Road Transport has proposed a higher motor third party insurance premium on new vehicles which will be bought from April 1st, 2022.

The rates for private cars premium have been hiked between 1 to 23 percent. For the cars, under 1000 CC, which is the most popular on the streets there the premium has gone up by 23 percent.

For new two-wheelers, the premium has been hiked by 15 to 177 percent. In the most popular categories, 75 CC to 150 CC here the premium hike of 17 percent is expected to come in.

Private electric cars also the premium has been hiked by anywhere between 1 to 27 percent and for electric two-wheelers anywhere between 17 to 177 percent.

This is at the proposal stage as of yet from the Road Transport Ministry, of course, it will be subject to feedback from stakeholders and approval from the insurance regulator before these upward revisions and the changes come into effect starting April 1st, 2022.