Cars, two-wheelers to become expensive from today; Know hiked rates of insurance premium
The Insurance Regulatory and Development Authority (IRDAI) has stated that third-party insurance premiums would be raised beginning June 1. The increase in the premium impacts the on-road pricing of new vehicles and two-wheelers, making them much more expensive.
FollowWith new and higher insurance prices going into effect today, new automobiles are becoming more costly. The Insurance Regulatory and Development Authority (IRDAI) has stated that third-party insurance premiums would be raised beginning June 1. The increase in the premium impacts the on-road pricing of new vehicles and two-wheelers, making them much more expensive.
It is also designed to cause problems for automakers in terms of sales at a time when the sector is already experiencing turmoil due to chip shortages and rising raw material prices. A number of OEMs have also announced increases in car ex-showroom prices. When combined with the increased insurance cost, new-vehicle purchasers will have to pay more today.
On-road prices for two-wheelers in our market would rise by around 15%. Fortunately, the increase in insurance premiums will only effect the pricing of motorcycles with displacements greater than 150 cc, such as the Bajaj Pulsar, KTM RC 390, Royal Enfield Bullet, and many others in the class. Insurance will cost an additional 17% for new motorbike customers.
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In the case of private cars, insurance premiums for 1000 cc to 1500 cc vehicles will rise by 6%. However, regardless of engine size, the third-party charge for luxury automobiles has been raised by 23%. Third-party insurance prices for new registrations of automobiles with displacements ranging from 1000 cc to 1500 cc would rise by 11%.
Private automobiles with engine capacities ranging from 1,000 to 1,500 cc will pay Rs 3,416 as opposed to Rs 3,221, while cars with engine capacities greater than 1,500 cc would pay Rs 7,897 as opposed to Rs 7,890. Two-wheelers with displacements more than 150cc but less than 350cc would be charged a premium of Rs 1,366, while those with displacements greater than 350cc will be charged a premium of Rs 2,804.
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According to the ministry's statement, a 7.5 percent reduction in the higher premium is available for hybrid electric cars. A premium of Rs 2904 will be paid for BEVs with capacities greater than 30 kW, while Rs 1,780 will be charged for cars with capacities less than 30 kW.
