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 no revisions in the third party motor premium, the only segment that is still regulated, for last two years due to covid-19 pandemic
New Delhi:
In a relief for the customers, after taking over the exercise from the insurance regulator IRDA for the first time, the ministry of road transport and highways on Friday has 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 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.
For public goods carrying commercial vehicles, the premium will range from Rs 16,049 to Rs 44,242 depending on the gross vehicle weight while for the private ones the premium will range from Rs 8,510 to Rs 25,038.
For public goods carrying commercial vehicles (other than 3 wheelers), the proposed premium rates are in the range of Rs16,049 to Rs 44,342.
For private goods carrying commercial vehicles (other than 3 wheelers),the proposed premiums are between Rs 8,510 to Rs 25,038.
The three-year single premium for new private cars and five-year single premium for new two-wheelers have been proposed at in the range of Rs 6,521 to Rs 24,596 and Rs 2,901 to Rs 15,117, respectively, depending on their cubic capacity.
Rates for electric vehicles depending on their capacity expressed in kilowatts, (non passenger private cars), the premiums proposed to be fixed are between Rs 1,780 to Rs 6,712.
Similarly, for two-wheeler electric vehicles, the proposed premiums are in the range of Rs 457 to Rs 2,383.
The notification suggested that the hybrid electric vehicles will attract a discount of 7.5 per cent on the motor third party premiums.
Based on consultation with IRDAI and with the approval of competent authority , a draft notification to prescribe base premium for Motor Third Party Insurance Premium for the Financial Year 2022-23 has been prepared, said the ministry.
The data provided by the Insurance Information Bureau of India (IIBI) has been used for arriving at the Motor TP premium rates. The gross premium collected and claims paid data in respect of each of the accident years starting from the year 2011-12 up to 2020-21 have been considered, taking into account for preparing the proposed premium rates, said the ministry.