For the first time, the insurance regulator IRDAI on Thursday has reduced third party motor premium rates on average between 10 per cent and 20 per cent for bikes, cars and taxis, effective April 1.
IRDA, which had deregulated the pricing of the entire general insurance market in 2007, still regulates the third party pricing and unveil the annual revision before the beginning of the every new fiscal.
For small car owners (below 1,000cc), third party premium has been reduced by 10 per cent to Rs 1,850. For sedans (1,000-1,500cc) and SUVs (above 1,500cc), there has been a uniform rate cut of 8.5 per cent to Rs 2,863 and Rs 7,890 respectively.
Private cabs that include taxi aggregators have been allowed get a 17 per cent cut, auto rickshaws will have to shell out more. Rates for auto rickshaws and e-rickshaws increased 6.5 per cent to Rs 2,595 and Rs 1,685 respectively.Taxi owners of smaller commercial cars like hatchbacks will pay Rs 5,437 annually, those plying entry-level sedans might have to shell out Rs 7,147 a year.
Luxury cars in the segment have seen their rates cut by 17 per cent.
However, insurance for trucks raised by 8.2 per cent to Rs 15,620. Large trailers carrying cars, petroleum and LPG will see the benefit of a 9.4 per cent cut with premium of Rs 21,318.At 110%. IRDAI has effected the steepest increase in motor third-party insurance rates for luxury motorcycles.
The IRDAI has also cut rates by as much as 24 per cent for small mopeds — small-capacity scooters and two-wheelers with engine capacity below 75cc — to Rs 427 this April from Rs 569 last year. For scooters and motorbikes with engine capacity between 75cc and 150cc, there was no change in premium at Rs 720.
For high-powered bikes (between 150cc and 350cc), there has been a nominal increase (1.5%) to Rs 985. For luxury bikes with engine capacity above 350cc, rates have been jacked by 110 per cent to Rs 2,323 from Rs 1,114.
For goods carrying public vehicles, insurance rates have increased from 6 per cent to 13 per cent. Public transporters will now have to pay anywhere between Rs 24,190 and Rs 39,367. For those small trucks plying vegetables, fruits and flowers within city streets, there is reason to cheer as premiums go down by 11% to Rs 7,144.
But transporting perishable goods, grains and other commodities inter-state might prove more expensive as
Small motorised threewheeler vegetable and fish carts also get a 25% cut with insurance now at Rs 4,544. For those plying eco-friendly models the premium is lower at Rs 3,175. Motor pedal cycles, three-wheelers and e-carts get a 33% cut to Rs 3,150 and Rs 2,579 respectively. While small tractors less than 6HP (horsepower) get a 14% cut to Rs 714, other specialised trailers and vehicles used in agriculture have seen a 12.5%.
Motor vehicle owners, of the affordable variety, are going to pay lower premiums on their third-party (TP) liability once the Insurance Regulatory and Development Authority of India’s (Irdai’s) latest proposal translates into revised rates from general insurers.
General insurers, in all likelihood, will register higher sales figures in the product category. However, their costs for servicing of customers and their claims will rise.
For private cars whose engine capacity does not exceed 1,000cc, the regulator has proposed to decrease the premium to Rs 1,850 for 2018-19, from Rs 2,055 in 2017-18.
Two-wheeler premiums below 75cc will be priced at Rs 427 for FY19, against Rs 569 in FY18. In the above 150cc category, there is a marginal rise from Rs 887 in FY18 to Rs 985 for FY19. For motorcycles above 350cc, it has proposed to raise the premium from Rs 1,019 in FY18 to Rs 2,323 for FY19.