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Your ride just got costlier

Premium rates for the mandatory third-party motor insurance have risen between 20% and 30% for private cars.

Premium rates for the mandatory third-party motor insurance have risen between 20% and 30% for private cars. The rise for two-wheelers is lower at 14-20%. The new rates, applicable from April 1, are 20% higher for commercial vehicles too. PF1

The premiums have risen very year since 2011 because of an adverse claims ratio. In FY14, the industry reported 38,461 death claims, with the total amount paid by insurers at R2,342 crore, or an average of R6 lakh per claim. This is a rise of 12% in the average claim size over the previous year.

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Irdai

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