Motor Insurance protects you from the financial burden that may arise due to an accident, natural calamities, theft, etc. As per the government’s revised rate, private car insurance will attract rates of INR 2,094, which was 2,072 in the year 2019-20. And this premium is for a car with 1,000 cubic capacity (cc). The Insurance Regulatory and Development Authority of India (IRDAI) got the proposal for a rise in the third-party motor insurance premium from the Road Transport Ministry. Read this page to know more about the changes to take place in Motor Insurance Premium from the next financial year.
Proposal of Hike in Motor Insurance Premium
The union government has proposed this for various types of vehicles. You can check out the draft notification on the official website of IRDAI. The deadline is 14th March 2022 for this proposal. It is open for suggestions till that time. So, if no objections are submitted, this could proceed further and come into force from the next financial year.
What Does the Draft Say?
The Union Government has proposed the following –
- 15% discount on environment-friendly vehicles such as electric cars, two-wheelers, goods carrying vehicles, passenger vehicles, etc.
- 50% discount proposed on the Indian Motor Tariff (IMT) for private cars that are identified as vintage cars by the vintage and classic car club of India.
- 7.5% discount on Motor TP premium rates for hybrid electric vehicles
- Private cars with 1,000 cc to 1,500 cc will attract INR 3,416 compared to INR 3,221, while cars above 1,500cc will come with a premium of INR 7,897 compared to INR 7,890.
- The revised premium for two-wheelers’ 150cc to 350cc is INR 1,366 and INR 2,804 for above 350cc.
- Electric private cars not exceeding 30KW will have a revised premium of INR 1,780, whereas for those with more than 30KW to 65 KW, the premium will be INR 2,904
- For goods carrying commercial vehicles more than 12,000 kg to 20,000 kg, the premium would increase to INR 35,313 from INR 33,414. In the case of commercial vehicles above 40,000 kg, the premium will increase to INR 44,242 from INR 41,561.
- When you buy a third-party insurance cover, it is mandatory to get an own damage cover too.
- Coverage for collateral damage to a third party, such as a human being, who may suffer a road accident due to your vehicle.