Your new vehicle is going cost you more to insure as the Centre has proposed a hike in motor third-party insurance premiums. The Ministry of Road Transport and Highways along with the Insurance Regulatory and Development Authority of India (IRDAI) has issued a draft for the revision of rates.
For new cars, a hike in motor third party insurance premium of 1 to 23 percent has been proposed; 15 to 177 percent for new two-wheelers; 1 to 27 percent for new electric cars and 16 to 177 percent for two-wheeler EVs. The draft proposal is kept open for suggestions from all stakeholders till March 14 and the hike will come into effect by April 1, 2022.
What is a Motor Third Party Insurance Policy?
A Third-Party Liability Insurance Policy is one of the three parts of a Motor Insurance Policy. It costs lesser than the other two and is mandatory by law for all vehicles. It must be bought for three years in one go for four-wheelers and for five years for two-wheelers.
Details of the hike
The proposed premium hike for new private cars with engine capacity up to 1000cc is 23 percent or a hike from Rs 5,286 to Rs 6,521 for a three-year single premium. For new cars exceeding 1000cc but less than 1500cc the hike proposed is 11 percent or a hike from Rs 9,534 to Rs 10,640 for a three-year single premium, and for new cars exceeding 1500cc the hike proposed is 1 percent or a hike from Rs 24,305 to Rs 24,596 for a three-year single premium.
Most popularly sold cars like WagonR, Celerio, Hyundai i10/i20 less than 1000cc.
The proposed hike for new two-wheelers with engine capacity 75cc or less is 178 percent or a hike from Rs 1,045 to 2,901 for a five-year single premium. For new two-wheelers exceeding 75cc but less than 150cc, the proposed hike is 17 percent or a hike from Rs 3,285 to Rs 3,851 for a five-year single premium.
For new two-wheelers exceeding 150cc but less than 350cc the proposed hike is 35 percent or a hike from Rs 5,453 to Rs 7,365 for a five-year single premium and for new two-wheelers exceeding 350cc the proposed hike is 16 percent or a hike from Rs 13,034 to Rs 15,117 for a five-year single premium.
Most bikes sold in India are between 75cc to 150cc where a hike of about Rs 600 will be experienced.
New electric cars will see a hike in motor third-party liability insurance premium between 1 percent to 27 percent. The long-term three-year premium rates for private electric vehicles will be Rs 5,543 for cars with battery capacity below 30 KW. For electric cars with a battery capacity of 30-65 KW, the premium will be Rs 9,044, and for those above 65 KW will be Rs 20,907.
For two-wheeler, EVs the hike in motor third party liability insurance premium will be between 16 percent and 177 percent whereas 17 percent will be the hike for the most popularly sold two-wheeler EVs in India, as per reports
First Published: Mar 8, 2022 1:21 PM IST
