Third-Party Insurance Premium Rates Increased in India

Third-Party Insurance Premium Rates Increased in India: According to the new regulations by the Insurance Regulatory and Development Authority of India (IRDAI), the customers will have to pay more for their two-wheelers and cars third party insurance covers. The new pricing strategy will be coming into effect from June 16, 2019. The hiked prices will be in effect for the financial year 2019-2020.

As per the new regulations, the new yearly premium for the four-wheelers with engines under 1000cc will be INR 2,072 which is 12% higher than the INR 1,850 premium mandatory in the last year. In addition to this, the third party insurance premium rate for the four-wheelers with engines between 1000cc and 1500cc gets a price hike of 12.5% and will now require a premium of INR 3,221. There is no price hike for the four-wheelers with engines larger than 1500cc and premium rate is the same at INR 7,890.

Coming to the two-wheelers, the vehicles with engines less than 75cc now gets a price hike of 12.9%, with the new yearly premium mandatory at INR 482. There is a 4.4% increase in the insurance premium prices for the two-wheelers between 75cc and 150cc, which now stands at INR 750 per year.

Owners with two-wheelers having engines between 150cc to 300cc will now have to pay a premium of INR 1,193, getting a hike of 21.1% in comparison to the rates last year. The two-wheelers with an engine larger than 300cc attract the same third party premium rates as in the last year which is INR 2,323.

In addition to these, the electric cars over 65kW and electric two-wheelers over 16kW will have to pay a third party insurance premium rate of INR 6,707 and INR 1,975 respectively.

Data Source: Autocar India