Third party motor insurance premium rates set to go up to 50% from April 1: Here’s all you need to know

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Updated: March 28, 2017 11:22:01 AM

Insurance regulator Insurance Regulatory and Development Authority (IRDA) has given a go-ahead to insurers for revision in commission for agents and also has proposed up to 50% hike in the premium rates for third party insurance covers. With this, third party car and motorcycle insurance will cost you more.

The rise in premiums will be in addition to the enhanced third party motor insurance rates, which will also be effective from April 1.

Insurance regulator Insurance Regulatory and Development Authority (IRDA) has given a go-ahead to insurers for revision in commission for agents and also has proposed up to 50% hike in the premium rates for third party insurance covers. With this, third party car and motorcycle insurance will cost you more. The rise in premiums will be in addition to the enhanced third party motor insurance rates, which will also be effective from April 1.

Motor Vehicle Insurance

Motor vehicles in the category of 1000-1500 CC
Vehicles falling under 1000-1500 CC have to pay a premium of Rs 2237 in the financial year 2016-17, but after the April 1st, the rates are expected to increase where the premium of third party insurance will surge to Rs 3355. Approximately, 50 percent of the third party premium rates is going to get an increase in this particular segment of the motor.

Motor vehicles in the category of above 1500 CC
Vehicles which are above 1500(+) CC have to pay a premium of Rs 6164 in the financial year 2016-17, but after the April 1st, the rates are expected to increase where the premium of third party insurance will surge to Rs 9246. Here also, approximately 50 percent of the third party premium rates are going to get an increase in this particular segment of the motor.

However, people having a car of less than 1000 CC will probably not find any change in the third party premium in the coming financial year.

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Two Wheeler Insurance

Two wheeler vehicles in the category of 75-150 CC
Two wheeler vehicles, which fall into the category of 75-150 CC, have to pay a third party insurance premium of Rs 619, but now after April 1st, the rates are expected to increase up to Rs 720. A minor of 16 percent of premium rates is going to get an increase in this particular segment of two wheeler.

Two wheeler vehicles in the category of 150-350 CC
Two wheeler vehicles which fall in the category of 150-350 CC has to pay a third party insurance of Rs 693 but now after the April 1st, the rates are expected to insurance up to Rs. 978. A major of 41 percent of premium rates is going to increase in this particular segment of two wheelers.

Two wheeler vehicles in the category above 350 CC
Two wheeler vehicles which fall in the category of above 350 CC have to pay a third party insurance premium of Rs 796, but now after April 1st, the rates are expected to increase up to Rs 1194. Approximately 50 percent of premium rates is going to get an increase in this particular segment of two wheelers.

However, people having a bike of less than 75 CC will probably not find any change in the third party premium rates in the forthcoming financial year.

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It is important to note that the change in premium rates due to these new regulations is to be limited to increase or decrease by 5 percent of the existing premium rates of products or the add-ons. Further, the insurance company has to give a certificate that there is no detrimental change in premium rates or any other provision of policies already sold.

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