Motor vehicle third-party insurance premiums to get cheaper
What's the story
Vehicle owners might be in for some good news as a proposal to lower premiums for the mandatory motor vehicle third-party (TP) insurance cover has been put into place.
After increasing TP premiums for two consecutive years, the Insurance Regulatory and Development Authority of India (IRDAI), which revises premiums annually, has proposed lower or flat rates for most vehicle categories for 2018-2019.
Here's more.
Definition
What is motor third-party insurance cover?
Motor third-party (TP) insurance cover is mandatory for all vehicles, and the insurance covers the liability arising from third-party claims due to accidents.
Cars
The revised rates for private cars in 2018-19
For 2018-19, IRDAI has proposed a motor TP premium of Rs. 1,850 for private cars not exceeding 1,000cc, as opposed to Rs. 2,055 for the same category in the last year.
However, motor TP premium for private cars between 1,000cc and 1,500cc, and those exceeding 1,500cc have not seen a decrease in the proposal - they remain at Rs. 2,863 and Rs. 7,890 respectively.
Two-wheelers
Motor TP premium rates for two-wheelers
The IRDAI has proposed lowering motor TP premium for two-wheelers not exceeding 75cc to Rs. 427 from Rs. 569 last year.
However, the proposal hasn't suggested lowering of premiums in the 75-150cc segment.
Meanwhile, IRDAI has proposed a marginal hike in the 150-350cc segment, and a twofold hike in the 350cc+ segment.
Premium for superbikes has been pegged at Rs. 2,323.
Details
Proposed changes in premiums for goods carrying vehicles
The IRDAI has proposed lowering premiums for private/public goods carrying motorised three-wheelers and motorised pedal cycles.
However, there will be a hike in rates for public carriers apart from three-wheelers in several categories - 7,500-12,000kg, 12,000-20,000kg, 20,000-40,000kg, and 40,000kg+. Private carriers will also face a moderate hike.
Premium rates will not be changed for those where the gross vehicle weight (GVW) doesn't exceed 7,500kg.