The Insurance Regulatory and Development Authority of India has updated the Motor Third-Party premium rates. The new rates for private four-wheelers and two-wheelers have been marginally increased in almost all vehicle classes compared to the previous financial year.
For private cars (four-wheelers) the IRDAI has issued the revised rates that state that Not exceeding 1000 cc will now have to pay Rs 2,072 which has been increased from Rs 1,850 last year. For vehicles exceeding 1000 cc but not exceeding 1500 cc, the previous insurance premium of Rs 2,863 has been revised to Rs 3,221. However, for any vehicle that exceeds 1,500cc engine capacity, the third party insurance premium remains unchanged at Rs 7,890.
The same has applied to two-wheelers as for vehicles not exceeding 75cc has been hiked from Rs 427 to Rs 482. For vehicles above 75cc but not exceeding 150cc earlier would have a third party insurance premium of Rs 720 after the hike now stands at Rs 752. Motorcycles which exceed the 150cc engine capacity but fall below 350cc earlier stood at Rs 985 has now been increased to Rs 1,193. Any motorcycle over the 350cc engine capacity slab will continue to have a third-party insurance premium of Rs 2,323.
In July 2018, the IRDAI directed all General insurers to issue mandatory Long-Term Motor Third Party insurance covers for all privately owned cars and two-wheelers with effect from 1st September 2018. For new cars, it is now mandatory to have been issued with a three-year policy, while a five-year policy has been set for new two-wheelers. The Union Minister of Finance & Corporate Affairs, Nirmala Sitharaman along with this notification also mentioned that in respect of new cars and new two-wheelers, there is no change in the aforesaid long-term Motor Third-Party premium rates in the 2019-20 financial year as compared to the 2018-19 financial year.
