Increase in motor insurance premium on cards

Third-party motor insurance premiums are expected to rise for various categories of vehicles from April 1, with the Union’s Department of Roads and Motorways considering a moderate to sharp upward revision, as well as a reduction for some, in a draft notice.

For private cars, the increase ranges from £7 to £195 depending on displacement. For two-wheelers, the suggested hike varies between ₹58 and ₹481. A ₹38 reduction was also proposed for 75-150cc bicycles (commuting category).

A flat-rate increase has been proposed for the mandatory single-premium long-term motor TP cover for new cars and two-wheelers. Premium rates will also be increased for public goods carriers and vehicles in various other categories. For some vehicles such as buses, including school buses, the proposed premium is lower than the existing rates.

A 15% rebate has been proposed for electric vehicles, including passenger cars, two-wheelers, goods-handling vehicles and passenger transport vehicles. For hybrid electric vehicles, the draft provides for a discount of 7.5%.

The ministry said the draft notification had been prepared in consultation with insurance regulator IRDAI. It has been almost three years since the Kfz-TP tariff was revised – the existing tariffs came into force on June 16, 2019. While the 2019 revision was probably delayed due to federal elections, tariffs have remained unchanged over the past two years due to the effects of the pandemic. Earlier this year, general insurers were reportedly seeking a 15-20% increase in motor liability insurance premiums.

If the proposal is implemented unchanged, the motor vehicle liability premium for passenger cars with a cubic capacity of up to 1000 ccm will be ₹2,094 compared to ₹2,072; 1000-1500cc – ₹3,416 (Rs. 3,221); and over 1500cc – £7,897 (£7,890). For two-wheelers up to 75cc the premium is £538 (₹482); 150-350cc – £1,366 (£1,193); and over 350 cc -₹2,804 (₹2,323). Owners of 75cc to 150cc two-wheelers pay less at £714 (£752). The three-year individual award for new private cars will be as follows: Up to 1000 cc – ₹6,521 (₹5,286); 1000-1500cc – £10,640 (£9,534); over 1500cc – £24,596 (£24,305). The five-year individual premium for new two-wheelers is: up to 75 cm³ – ₹ 2,901 (₹ 1,045); 75-150cc – £3,851 (£3,285); 150-350cc – £7,365 (£5,453); and over 350cc – £15,117 (£13,034).

Leave a Reply

Your email address will not be published. Required fields are marked *