The Insurance Regulatory and Development Authority of India (IRDAI) has revised the third-party motor insurance premium rates for cars and two-wheelers for FY 2019-20. The new rates will be effective from 16 June 2019.
The third-party insurance premium rates have been increased by a maximum of 12.5% for cars and 21% for two-wheelers. The old and revised rates for the different categories of private cars and two-wheelers are given in the table below:
|
Description |
Old premium rate (in Rs.) |
Revised premium rate (in Rs.) |
|
Private cars |
||
|
Not exceeding 1000 cc |
1,850 |
2,072 |
|
Exceeding 1000 cc but not exceeding 1500 cc |
2,863 |
3,221 |
|
Exceeding 1500 cc |
7,890 |
7,890 |
|
Two-wheelers |
||
|
Not exceeding 75 cc |
427 |
482 |
|
Exceeding 75 cc but not exceeding 150 cc |
720 |
752 |
|
Exceeding 150 cc but not exceeding 350 cc |
985 |
1,193 |
|
Exceeding 350 cc |
2,323 |
2,323 |
As seen above, the premium rates for the last slab of both, cars and two-wheelers, have remained unchanged. The premium rate for private cars exceeding the engine capacity of 1,500cc is Rs.7,890 and two-wheelers exceeding the engine capacity of 350 cc is Rs.2,323.
This fiscal year, the IRDAI has also introduced third-party insurance premium rates for electric cars and two-wheelers. The rates have been decided based on the motor power of the vehicles. While the premium rates range from Rs.1,761 to Rs.6,707 for electric cars, the rates range from Rs.410 to Rs.1,975 for electric two-wheelers.
The statement released by the authority mentioned that it has been proposed that a 15% discount should be provided on the premium rate for electric cars and electric two-wheelers.
Also, private cars that are certified as vintage cars by the Vintage & Classic Car Club of India are eligible for a 50% discount on the insurance premium.
The IRDAI has the authority to decide the premium rates and it has been notifying the same since 2011. Since 2013, the regulator has been revising the premium rates every year until last year. Even this year, the IRDAI decided to pause premium rate revision as it did last year.
However, after careful consideration and repeated requests from insurance companies that were running under loss, the apex insurance regulator of the country finally revised the rates.
