The Insurance Regulatory and Development Authority of India (IRDAI) has recently hiked third party (TP) motor insurance premium for small and medium private cars. The body has increased the said premium by 12 to 12.5 percent for 2019-20. Moreover, IRDAI has also proposed an increase in Third Party premium for heavy vehicles and two-wheelers for the current year. These new rates will be applicable starting June 16. IRDAI has proposed a 12 percent increase in the private cars below an engine displacement of 1000 cc engine to Rs 2,072. On the other hand, cars with engine capacity of 1000-1500 cc will see a 12.50 percent increase to Rs 3,221. In May, IRDAI proposed a hike of 14.6 percent and 15.26 percent in premium for the two categories respectively. However, the body reduced rates after it received the feedback from public. For cars above 1500cc, there is no change in the rate of premium.
Speaking of two-wheelers between 150cc and 350cc, the TP insurance cover has been increased by 21.11 percent to Rs 1,193. On the other hand, two-wheelers having an engine displacement between 75 cc and 150 cc, the TP rate has been hiked by 4.44 percent to Rs 752. Last, the premium for two-wheelers above 350 cc capacity remains the same at Rs 2,323. For goods carriers with gross vehicle weight (GVW) up to 7,500 kg, IRDAI has decided to hike the TP premium from Rs 14,390 to Rs 15,746. On the other hand, for vehicles with GVW between 7500 kg to 12,000 kg, the said will see an increase from Rs 24,190 to Rs 26,935. Last, vehicles between 12,000 kg to 20,000 kg will see the rate rising from Rs 32,367 to Rs 33,418.
Apart from the revision in TP rates, IRDAI has introduced new categories across segments. Under these, the electric vehicles are introduced basis of motor power with rates at around 15 percent lower than that of traditional fuel vehicles. The other category is of the Quadricycle in the private car segment. In this, the rates are kept at par with the conventional fuel vehicles. The commercial segment too sees two new categories. First, the upcoming quadricycle segment for intra-city shared mobility. The second newly introduced category is the school bus, the rates of which are kept lower than other buses.
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