The price of car insurance for four wheeler and two wheeler owners is likely to increase from June 1 this year. The speculation comes as the Ministry of Road Transport and Highways (MoRTH) will increase third party motor insurance premium for various categories of vehicles from June 1, it said in a notification. This decision is likely to jack Price of cars and two wheelersAnother cause for concern for vehicle owners India Those who already have to pay around Rs 100 for a liter of petrol.
as amended insurance rates As notified by the road transport ministry on Wednesday, May 26, private cars with an engine capacity of 1,000 cc will have to pay insurance rates of Rs 2,094, compared to Rs 2,072 in 2019-20. On the other hand, private cars with engine capacity between 1,000 cc and 1,500 cc will attract car insurance rates of Rs 3,416 as against Rs 3,221. Meanwhile, owners of cars above 1,500 cc will have to pay a premium of Rs 7,897 as per the notification.
Two-wheelers above 150 cc but within 350 cc will attract a premium of Rs 1,366 and for those above 350 cc the revised premium will be Rs 2,804.
According to a PTI report, the revised third-party (TP) insurance premium will come into effect from June 1, after a moratorium of two years due to the COVID-19 pandemic. Earlier, third party insurance rates were notified by the Insurance Regulatory and Development Authority of India (IRDAI). This is the first time that the road transport ministry has released third party insurance rates in consultation with the insurance regulator.
According to the notification of the ministry, a rebate of 7.5 percent will be given on the premium of hybrid electric vehicles. Whereas electric private cars above 30 kW will attract a premium of Rs 1,780, while electric cars above 30 kW but above 65 kW will attract a premium of Rs 2,904.
The premium for goods carrying commercial vehicles in excess of 12,000 kg but not exceeding 20,000 kg will increase from Rs 33,414 to Rs 35,313 in 2019-20. In case of commercial vehicles carrying more than 40,000 kg, the premium will increase to Rs 44,242 as against Rs 41,561 in 2019-20.
Third-party insurance cover is for damages other than self and is mandatory with own damage cover to be purchased by the vehicle owner. This insurance cover is for any collateral damage caused by a road accident to a third party, generally, a human being.
According to the notification, a discount of 15 percent has been provided for educational institute buses. “A discounted price of 50 per cent of the premium has been allowed for a private car registered as a vintage car,” it said.
The car insurance premium hike comes at a time when India is already battling rising inflation, and citizens are spending more cash to buy everyday products, while auto fuel prices have also gone up.
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