Third-party motor insurance premiums set to rise
Owners of cars with engine capacities between 1,000cc and 1,500cc will have to brace themselves for a 15.26% rise, with premiums going up from Rs 2,863 to Rs 3,300.
From Rs 985 in 2018-19, the rates could go up to Rs 1,193 if the exposure draft is finalised in the current form. Among private cars, owners of cars with engine capacities between 1,000cc and 1,500cc will have to brace themselves for a 15.26% rise, with premiums going up from Rs 2,863 to Rs 3,300.
The insurance regulator said it has taken into account data provided by the Insurance Information Bureau of India (IIBI), besides claims paid data for the years 2011-12 to 2017-18 and gross written premiums for these financial years while arriving at these rates.
*Engine capacity. **Proposed. Source: Irdai
The premium segments – two-wheelers with engine capacity exceeding 350cc and cars with engine capacity of over 1,000cc – however, have been left untouched. In addition, the regulator has proposed a discount of 15% on motor third party premium rates for electric cars and two-wheelers.
Private cars identified as vintage cars by the Vintage and Classic Car Club of India will be eligible for a 50% discount on the proposed rates. Three-year and five-year single premium rates for new cars and two-wheelers respectively will remain unchanged. On directions from the Supreme Court, the insurance regulator had introduced long-term third-party liability premiums for new cars and two-wheelers from 1 September.
Rates are usually revised in April by 10-20%, but the Irdai had chosen to leave them unchanged back then. It has now sought comments from all stakeholders to the exposure draft by 29 May.