Hyderabad:
Come Apr 1,the owners of trucks, cars and two wheelers should get ready to payi higher premiums, in the range of 10 per cent to 15 per cent,for buying the mandatory third party motor insurance policies
The insurance regulator IRDAI, in its exposure draft on revision in premium rates for motor third party insurance cover for the FY 2020-21,has 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,
The premiums for the third party motor insurance for FY 2020-21 would be finalised after getting industry feed- back and would be implemented from Apr 1,
The data provided by the Insurance Information Bureau of India (IIBI) has been used for arriving at the Motor TP premium rates.The claims paid data in respect of each of the accident years starting from the year 2011-12 up to 2018-19 has been considered, said the IRDAI.
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 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 has been 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 will be 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 will be revised from Rs3,285 to Rs3,845.
For a public Goods Carrying Commercial Vehicles (other than 3 wheelers), not exceeding 7500 kgs,the cost of a third party motor insurance policy may be hiked from Rs 15,746 to Rs 16,092. For a same category of vehicle,exceeding 7500 kgs but not exceeding 12000 kgs, the premium may go up from Rs 26,935 to Rs 28,288.
For a private Goods Carrying Commercial Vehicles (other than 3 wheelers), exceeding 12000 kgs but not exceeding 20000 kgs, the cost of motor insurance (TP) may be hiked marginally from Rs 10,876 to Rs 11,094. The owners of the same category of vehicles,exceeding 20000 kgs but not exceeding 40000 kgs, may have to pay a higher premium of Rs 17,827 against existing Rs 17,476.
Vehicle exceeding 40000 kgs may have to pay Rs 24,825 against Rs 24,825.
A discount of 15 per cent is proposed for electric private cars, elctric two wheelers, electric goods carrying commercial vehicles and electric passenger carrying vehicles. The proposed discount will incentivize usage of environmental friendly Vehicles, said IRDAI..
As for the Vintage Cars segment, there is no substantial data relating to the past experience. A discounted price of 50% of the proposed rate based on the erstwhile Indian Motor Tariff (IMT) has been proposed for those private cars identified as Vintage Cars by the Vintage and Classic Car Club of India.