IRDAI Proposes to Hike Third Party Motor Insurance Premium

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 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.

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