Government proposes hike in third-party motor insurance premium from April 1
India Today
The Union government has proposed an increase in third-party motor insurance premiums beginning in the next fiscal year.
The Union Road Transport Ministry has proposed an increase in the third-party motor insurance premium for various categories of vehicles, which is likely to jack up insurance cost of cars and two-wheelers from April 1.
According to the proposed revised rates, private cars with 1,000 cubic capacity (cc) will attract rates of Rs 2,094 compared to Rs 2,072 in 2019-20.
Similarly, private cars with 1,000 cc to 1,500 cc will attract rates of Rs 3,416 compared to Rs 3,221, while owners of cars above 1,500cc will see a premium of Rs 7,897 compared to Rs 7,890.
Two-wheelers over 150 cc but not exceeding 350 cc will attract a premium of Rs 1,366 and for two-wheelers over 350 cc the revised premium will be Rs 2,804.
After two years moratorium due to Covid-19 pandemic, the revised TP insurance premium will come into effect from April 1.
Earlier, TP rates were notified by the insurance regulator IRDAI. This is also the first time that the road transport ministry will notify the TP rates in consultation with the insurance regulator.
According to the draft notification, a discount of 15 per cent is proposed for electric private cars, electric two-wheelers, electric goods-carrying commercial vehicles and electric passenger-carrying vehicles.
