Hyderabad:
The insurance regulator IRDAI has decided to put off its proposed annual move to hike the premiums for the mandatory third party motor cover that would have been effective from Apr 1 .
“Validity of premium rates for Motor Third Party Liability Insurance Cover set out for the year 2019-20 stands extended beyond 31st March, 2020 until further notice, Accordingly, all insurers shall continue to charge the rates currently being charged for Motor Third Party Liability Insurance Cover from 1st April, 2020 onwards until further orders.,’’said IRDA in its order on Friday.
Though the IRDAI has not provided any specific reasons for postponing its proposed move to hike the third party motor premium, sources point out that the insurance regulator’s move is due to the ongoing 21-day nation-wide lock-down to check the spread of caronavirus.
Earlier,the IRDAI in its exposure draft on revision in premium rates for motor third party insurance cover for the FY 2020-21, had proposed to raise the premiums of third party motor insurance policies by 10-15 per cent for the most of the categories of vehicles.
It had proposed higher premiums for most of the auto categories including passenger cars, private cars, Goods Carrying Commercial Vehicles, Four wheeled vehicles used for carrying passengers for hire,
For a new private car, not exceeding 1000 cc, three year single premium may go up from existing Rs 5,286 to Rs 6,079. For a new private car, exceeding 1000 cc but not exceeding 1500 cc, the premium was e likely to be revised from Rs 9,534 to Rs 10,149 crore..
However for a private car, exceeding 1500 cc, the third part premium was kept unchaged at Rs 24,305.
For insuring new two wheeler, not exceeding 75 cc, for five years , the cost of a third party motor insurance would have been increased from Rs 1,045 to Rs 1,223,
For two wheelers exceeding 75 cc but not exceeding 150 cc, the cost for a five year third part policy would have been revised from Rs3,285 to Rs3,845.