IRDAI reduces 3rd-party insurance for cars and bikes

Earlier this month, the Insurance Regulatory and Development Authority of India (IRDAI) had proposed a reduction in the third-party liability (TPL) insurance premiums on select cars and bikes. IRDAI has now announced the revised TPL premiums for FY2019, which will come into effect from April 1, 2018. While insuring certain cars and bikes will now be cheaper, premiums for select commercial vehicles have been hiked.

Third-party insurance premium for cars with engines smaller than 1,000 cc has been reduced by 10% to Rs. 1,850 and for cars within the 1,000-1,500 cc bracket is Rs. 2,860. Premium for cars with engine capacity larger than 1,500 cc is Rs. 7,890. 

TPL premium for 2-wheelers under 75 cc has gone down by 25% to Rs. 427. The premium for 2-wheelers in the 75-150 cc category is set at Rs. 720 and for those in the 150-350 cc bracket is Rs. 985. TPL premium for 2-wheelers above 350 cc is Rs. 2,323.

The rates for commercial vehicles like trucks have gone up by 20-30% across the different categories. In the 3-wheeler category, e-rickshaw owners will now have to shell out Rs. 3,175 while the premium for goods / public carriers with a capacity exceeding 40,000 kg has been set at Rs. 38,308. The premium for agricultural tractors up to 6 HP has also been raised from Rs. 653 to Rs. 816.