“Notice is hereby given that the said draft rules shall be taken into consideration after the expiry of a period of 30 days from the date on which the copies of this notification as published in the Gazette of India, are made available to the public,” said the ministry while reissuing the proposal on March 17
New Delhi:
Domestic general insurers which are eagerly waiting to charge permitted higher premiums in the `Motor 3rd Party’ segment from Apr 1 will have to wait another six weeks to do so,
The ministry of road transport and highways, that had issued the original draft proposal on the revised `Motor 3rd Party motor’ premium on March 4 for public feedbacks, had planned to allow insurers to implement the revised rates from Apr 1.
But for some technical reason, the ministry has reissued same draft proposal on March 17.
“Notice is hereby given that the said draft rules shall be taken into consideration after the expiry of a period of 30 days from the date on which the copies of this notification as published in the Gazette of India, are made available to the public,” said the ministry while reissuing the proposal on March 17.
“There were some technical issues for which the draft proposal has to be reissued. Now the revised rates can only be implemented after May 15 after completing the entire set of legal formalities including insurers notifying their clients about the new rates, said sources in the ministry.
Objections and suggestions to these draft rules, if any, may be sent to the joint secretary (MVL, Transport & Toll), Ministry of Road Transport and Highways and Insurance Regulatory and Development Authority of India, said the ministry.
Effectively, the general insurers will be getting an opportunity to revise Motor 3rd Party rates after three years since last revision had happened in May 2019.
Earlier, in a relief for the customers, after taking over the exercise from the insurance regulator IRDAI for the first time, the ministry of road transport and highways had proposed revising the motor third party premium rates mostly in the range of 5 to 10 per cent for the next fiscal.
Also in a bid to promote environment friendly vehicles, the draft notification has proposed a 15 per cent discount for electric private cars, electric two wheelers, electric goods carrying commercial vehicles and electric passenger carrying vehicles.
There have been no revisions in the third party motor premium, the only segment that is still regulated, for last two years due to covid-19 pandemic.
In the draft notification, the rates for private cars with 1,000 cubic capacity (cc) has been proposed at Rs 2,094 against the existing rate of Rs 2072.
Similarly, for private cars with 1,000 cc to 1,500 cc , the premium has been suggested at Rs 3,416 against existing rate of Rs 3221.
Premium for above 1,500 cc private cars have been planned at Rs 7,897 against the current rate of Rs 7,890.
Two-wheelers over 150 cc but not exceeding 350 cc may be revised to Rs1,366 against the existing rate of Rs 1193.
However, for two-wheelers over 350 cc, the proposed premium at Rs 2,804 is at a higher range against the existing rate of Rs 2323.