India’s Insurance Regulatory and Development Authority (IRDAI) has proposed to reduce the insurance premium on small private cars and certain entry-level two-wheelers in India but also plans to increase the insurance for several vehicles including goods vehicles. A draft released by IRDAI for third-party motor insurance for Financial Year 2018-19 and has invited for stakeholders comments until March 22, 2018. The regulator has proposed to lower the premium for third-party mandatory car insurance with engine capacity of less than 1,000 cc to Rs 1,850 from the existing Rs 2,055. Currently, there is no proposal to change the insurance premium of cars and SUVs with engine capacity higher than 1,000 cc.
If this proposal comes true, then the premium on e-Rickshaw will go up from existing Rs 1440 to Rs 1,685 starting April 1, 2018.
Insurance premium on two-wheelers with less than 75 cc engine will fall to Rs 427 from the current Rs 569. No change has been proposed for entry level bikes (75 to 150 cc). However, the draft proposed by IRDAI has more than double the premium on motorcycles or bikes exceeding 350cc engine capacity to Rs 2,323. Also, an increase has been proposed in the case of performance category bikes (150-350 cc).
Further, The regulator has proposed to either increase or maintain status quo in premium rates in most of the categories of commercial vehicles. The proposed premium on goods carrying vehicles (exceeding 40,000 kg) is Rs 39,299 from the current Rs 33,024. The exposure draft said that in case of vintage cars, a discount of 50 per cent would be allowed for private cars certified as ‘vintage cars’ by Vintage and Classic Car Club of India. There is a proposal to reduce the third-party premium on in certain category of vehicles (four-wheeled) used for carrying passengers.
Farming equipment including tractors (up to 6HP) is likely to see an increase in premium from Rs 653 to Rs 816.
The data provided by the Insurance Information Bureau of India (IIBI) has been used for arriving at the Motor TP premium rates proposed for the 2018-19 financial year, the IRDAI confirmed
(WITH INPUTS FROM PTI)
