IRDAI to lower 3rd-party insurance for select cars, bikes

The Insurance Regulatory and Development Authority of India (IRDAI) has proposed a reduction in the third-party liability (TPL) insurance premiums on small private cars and select bikes for FY 2018-19. On the other hand, the regulatory authority has proposed a hike in TPL premiums for goods carriers. Further, stakeholders have been invited to submit their comments on this matter till March 22, 2018.

The per the draft proposal, the premium for third-party insurance on cars with engines smaller than 1,000 cc is expected to be reduced from Rs. 2,055 to Rs. 1,850. The premiums for cars with engines larger than 1,000 cc will remain unchanged. Certified vintage cars might get a 50% discount on insurance premiums.

Additionally, premium for 2-wheelers with engines smaller than 75 cc could be reduced from Rs. 569 to Rs. 427, while there will be no change in premiums for entry-level bikes ranging from 75 cc to 150 cc. However, IRDAI has proposed a hike in premium on bikes (over 350 cc) to Rs. 2,323. Similarly, insurance premiums for bikes in the 150-350 cc category could also get expensive.

IRDAI has also proposed to increase the premium on e-rickshaws from Rs. 1,440 to Rs. 1,685 in FY2018-19. Premiums for most commercial vehicles will remain the same, however goods carriers with a capacity exceeding 40,000 kg could see a hike in premiums from Rs. 33,024 to Rs 39,299. Third-party premiums for certain 4-wheeler people carriers could be reduced and premiums for agricultural tractors up to 6 BHP could go up from Rs. 653 to Rs. 816.

Source: Business Today