The general insurers are eagerly waiting for the final notification of the Motor TP rates as they have not been allowed to raise the rates for the loss making portfolio during last two years by the insurance regulator IRDAI due to the Covid-19 Pandemic
A discounted price of 50% of the premium based on the Indian Motor Tariff will be allowed to a private car registered as Vintage Car. A discount of 7.5% on the premium will also be allowed for Hybrid Electric Vehicle, said the Ministry of Road Transport and Highway
New Delhi:
In a big relief to general insurers, the Ministry of Road Transport and Highways(MoRTH) has finally decided to implement the new rates of the mandatory motor third party(TP) portfolio from June 1.
The general insurers are eagerly waiting for the final notification of the Motor TP rates as they have not been allowed to raise the rates for the loss making portfolio during last two years by the insurance regulator IRDAI due to the Covid-19 Pandemic.
This is also the first time the MoRTH, not the IRDAI, which is finalising the new rates.
The pricing of Motor TP business is still regulated by the government though rest of the rates in the general insurance industry are deregulated long ago.
MoRTH, which had first published the draft rates for the Motor TP on March 17 said, the objections and suggestions received from the public in respect of the draft rules have been duly considered by the Central Government
A discounted price of 50% of the premium based on the Indian Motor Tariff will be allowed to a private car registered as Vintage Car. A discount of 7.5% on the premium will also be allowed for Hybrid Electric Vehicle, said the MoRTH.
The base premium for third party insurance for unlimited liability for the various classes of vehicles are following-
Private cars
-Not exceeding 1000 cc (cubic capacity) Rs 2,094,
-Exceeding 1000 cc but not exceeding 1500 cc Rs 3,416
-Exceeding 1500 cc Rs 7,897
Two Wheelers
-Not exceeding 75 cc Rs 538
-Exceeding 75 cc but not exceeding 150 cc Rs 714
Goods Carrying Commercial Vehicles (other than 3 wheelers)
GVW not exceeding 7500 kgs. Rs 16,049
Exceeding 7500 kgs but not exceeding 12000 kgs. Rs 27,186
-Exceeding 12000 kgs but not exceeding 20000 kgs Rs 35,313
Exceeding 20000 kgs but not exceeding 40000 kgs Rs .43,950
Exceeding 40000 kgs. Rs 44,242
New Private Car– 3 year single premium
Not exceeding 1000 cc Rs 6,521
Exceeding 1000 cc but not exceeding 1500 cc Rs 10,640
Exceeding 1500 cc Rs 24,596
New Two Wheeler – Five year single premium
Not exceeding 75 cc Rs 2,901
Exceeding 75 cc but not exceeding 150 cc Rs 3,851
Exceeding 150 cc but not exceeding 350 cc Rs 7,365
Exceeding 350 cc Rs 15,117
Rates for Electric vehicles
Private Cars
Not exceeding 30 KW Rs 1,780
Exceeding 30 KW but not exceeding 65 KW Rs 2,904
Exceeding 65 KW Rs 6,712
Two Wheelers
Not exceeding 3 KW Rs 457
Exceeding 3 KW but not exceeding 7 KW Rs 607
Exceeding 7 KW but not exceeding 16 KW Rs 1,161
Exceeding 16 KW Rs 2,383
Goods Carrying Commercial Vehicles (other than 3 wheelers)
GVW not exceeding 7500 kgs. Rs 13,642
Exceeding 7500 kgs but not exceeding 12000 kgs. Rs 23,108
Exceeding 12000 kgs but not exceeding 20000 kgs. Rs 30,016
Exceeding 20000 kgs but not exceeding 40000 kgs. Rs 37,357
Exceeding 40000 kgs. Rs 37,606
Long term rates for electric vehicles – Private Cars and Two wheelers
New Private Car – Three year single premium
Not exceeding 30 KW Rs 5,543
Exceeding 30 KW but not exceeding 65 KW Rs 9,044
Exceeding 65 KW Rs 20,907
New Two Wheeler – Five year single premium
Not exceeding 3 KW Rs 2,466
Exceeding 3 KW but not exceeding 7 KW Rs 3,273
Exceeding 7 KW but not exceeding 16 KW Rs 6,260
Exceeding 16 KW Rs 12,849
The third party insurance cover is for other than own damage, that is for the vehicle.This is mandatory cover, along with the own damage cover, that a vehicle owner has to purchase.
This insurance cover is for any collateral damage to a third party, generally a human being, caused due to a road accident.