Third-party insurances prices hiked by up to 21%

The Insurance Regulatory and Development Authority of India (IRDAI) has announced a hike in third-party motor insurance prices. The third-party insurance premiums for 2-wheelers have been raised by up to 21%, while that of cars is up by up to 12.5%.

Third-party premium for 2-wheelers in the 150-350cc segment has been raised from Rs. 985 to Rs. 1,193 - a hike of 21%. The premium rate for 2-wheelers up to 150cc is up by 4.4%.

Third-party insurance premium rates for private cars with engine capacity under 1,000cc has increased by 12% from Rs. 1,850 to Rs. 2,072, while that of cars with engine capacity between 1,000-1,500cc has been hiked by 12.5% to Rs. 3,221. Third-party insurance rates for premium segment cars has remain unchanged.

The premium rate for a 1 year policy for electric cars is set Rs. 3,735 and Rs. 11,085 for long-term policies. For electric 2-wheelers, the premium rate for a 1 year policy is Rs. 1,010 and Rs, 4,848 for a long term policy. These rates have been decided on the basis of the electric motor output. IRDAI has also proposed a discount of 15% on third-party insurance premium rates for privately owned electric cars and 2-wheelers.

The insurance premiums for quadricycles is Rs. 2,072 for private cars and Rs. 2,595 for commercial vehicles not exceeding 500cc.

Privately owned Vintage cars certified by the Vintage & Classic Car Club of India are offered a 50% discount on third party insurance premiums.

Source: Economic Times