Government Proposes Hike In Third Party Motor Insurance Premium From April 1, 2022
Road transport ministry has proposed a hike in the third-party motor insurance premium for various categories of vehicles, which will lead to increase in insurance premium costs of cars and two-wheelers from April 1, 2022.Â
The ministry has come out with a draft notification on the revised premium costs, on which comments have been invited from stakeholders by March-end.Â
According to the proposed revised rates, private cars with 1,000 cubic capacity (cc) will attract rates of Rs 2,094 compared to Rs 2,072 in 2019-20.
Similarly, private cars with 1,000 cc to 1,500 cc will attract rates of Rs 3,416 compared to Rs 3,221, while owners of car above 1,500cc will see a premium of Rs 7,897 compared to Rs 7,890.
Two-wheelers over 150 cc but not exceeding 350 cc will attract a premium of Rs 1,366 and for two-wheelers over 350 cc the revised premium will be Rs 2,804.
After a two years moratorium due to the Coronavirus pandemic, the revised third party insurance premium will come into effect from April 1.
Earlier, third party rates were notified by the insurance regulator Insurance Regulatory and Development Authority (IRDAI). This is also for the first time that the road transport ministry will notify the third party rates in consultation with the insurance regulator.
According to the draft notification, a discount of 15 per cent is proposed for electric private cars, electric two-wheelers, electric goods-carrying commercial vehicles and electric passenger-carrying vehicles.
A discount of 7.5 per cent on motor third party premium rates for hybrid electric vehicles is proposed, the draft notification said, adding that this will be an incentive to use environment-friendly vehicles.
While electric private cars (not exceeding 30KW) will attract a premium of Rs 1,780, for electric private cars (exceeding 30 KW but not exceeding 65 KW) premium will be Rs 2,904.
The premium for goods carrying commercial vehicles (exceeding 12,000 kg but not exceeding 20,000 kg) would increase to Rs 35,313 from Rs 33,414 in 2019-20.
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