IRDAI Proposes to Hike Third Party Motor Insurance Premium

Written by Sharad Bajaj

Updated On Oct 14, 20232 min read

IRDAI Proposes to Hike Third Party Motor Insurance Premium for FY 2020-21

The Insurance Regulatory and Development Authority of India (IRDAI) has proposed to increase the premium rates for third party car insurance. However, the regulator has proposed to keep the Third Party premium rate constant for private cars with an engine capacity exceeding 1500 cc. For cars with an engine capacity of less than 1,000 cc, IRDAI has proposed to hike the TP premium from Rs. 2,072 to Rs. 2,182, and for cars with the engine capacity exceeding 1000 cc but below 1500 cc, from Rs. 3,221 to Rs. 3,383. It has also proposed increased TP premium rates for two wheelers insurance.

Proposed TP Premium Rates For Private Cars

Engine capacity	Existing Rates (FY 2019-20)	Proposed Rates (FY 2020-21)
Not exceeding 1000 cc	Rs. 2,072	Rs. 2,182
Exceeding 1000 cc but not exceeding 1500 cc	Rs. 3,221	Rs. 3,383
Exceeding 1500	Rs. 7,890	Rs. 7,890

Source: IRDAI

Proposed TP Premium Rates For Two Wheelers

Engine capacity	Existing Rates (FY 2019-20)	Proposed Rates (FY 2020-21)
Not exceeding 75 cc	Rs. 482	Rs. 506
Exceeding 75 cc but not exceeding 150 cc	Rs. 752	Rs. 769
Exceeding 150 cc but not exceeding 350 cc	Rs. 1,193	Rs. 1,301
Exceeding 350 cc	Rs. 2,323	Rs. 2,571

Source: IRDAI

In its release, the IRDAI has also proposed a 15%-discount for electric private cars, electric two-wheelers, electric Goods carrying Commercial Vehicles and electric passenger carrying vehicles. In addition to this, a discount of 7.5% has been proposed by the regulator on TP premium rates for hybrid electric vehicles.

Disclaimer

This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Written by Sharad Bajaj

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Sharad is an insurance industry veteran who has managed motor insurance products for over a decade. He helped set up and scale the motor insurance vertical for a leading insurance company in his previous stint. In his spare time, Sharad likes to read and be in tune with nature.