Insurance Regulatory and Development Authority (IRDA) today announced an increase in premium rates of vehicle insurance policies for 2016-17. While for the regular cars, the premium will be about 40 per cent higher, it's 25 per cent higher for high-end cars. Besides cars, two-wheeler insurance premiums too has gone up by up to 25 per cent.
People owning cars below 1500cc will have to pay an extra 40 per cent on their insurance premium, while it's 25 per cent for cars above 1500cc. Premium on two-wheelers below 75cc has now gone up by 9.6 per cent, while it's 15 per cent higher for vehicles with engine capacity between 75cc - 150cc. Interestingly, premium rates on bikes above 350cc have been reduced by 10 per cent.
For auto rickshaws, except e-carts, the insurance premium has gone up by 3.2 per cent, while there is no hike in the premium for public goods-carriers weighing below 12,000kg.
Difference in premium rates after the hike
- 40% hike for cars below 1500cc
- 25% hike for cars above 1500cc
- 9.6% hike for two-wheelers below 75cc
- 15% hike for two-wheelers between 75cc-150cc
- 10% decrease in premium rates for bikes above 350cc
- 10$ decrease in premium rates for goods-carrying private vehicles below 7500kgs
- 3.2% hike for auto rickshaws
- No change for public goods-carrier below 12000kgs