As per the revised premium rates, private cars with 1,000 cubic capacity (cc) will be charged Rs 2,094 as compared to Rs 2,072 in 2019-20. 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.
The Union Road Transport Ministry proposed a hike in third-party motor insurance premiums for several vehicles, which is likely to jack up insurance costs of cars and two-wheelers from April 1. The ministry has come out with a draft notification on the revised premium costs, on which comments have been invited from stakeholders by March-end.
As per the revised premium rates, private cars with 1,000 cubic capacity (cc) will be charged Rs 2,094 as compared to Rs 2,072 in 2019-20. 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.
The TP rates were earlier notified by the insurance regulator IRDAI. This time, the road transport ministry will be notifying 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.
While electric private cars (not exceeding 30KW) will attract a premium of Rs 1,780, for electric private cars (exceeding 30 KW but not exceeding 65 KW) premium will be Rs 2,904.
The premium for goods carrying commercial vehicles (exceeding 12,000 kg but not exceeding 20,000 kg) would increase to Rs 35,313 from Rs 33,414 in 2019-20.
A discount of 7.5 per cent on motor third party premium rates for hybrid electric vehicles is proposed, the draft notification said, adding that this will be an incentive to use environment- friendly vehicles.
The third party insurance cover is for other than own damage and is mandatory along with the own damage cover that a vehicle owner has to purchase. This insurance cover is for any collateral damage to a third party, generally a human being, caused due to a road accident.
The ministry has invited suggestions on the draft notification by March-end.
