Third-party insurance for vehicles is going to get costlier from Wednesday (June 1) as the government has revised new base premium rates. With this hike, private cars with an engine capacity of up to 1,000 cc will incur a price of Rs 2,094, compared with Rs 2,072 earlier. Third-party insurance for two-wheelers with engine capacity between 75 cc and 150 cc has been revised upwards to Rs 714.
The insurance rates for private cars with engine capacity between 1,000 cc and 1,500 cc will be increased from Rs 3,221 to Rs 3,416. Although as a sigh of relief, the rates for cars above 1,500 cc will see a drop in premium to Rs 7,890, from Rs 7,897 earlier, according to new rates issued by the Union Ministry of Road Transport and Highways (MoRTH). Before this, these insurance rates were last revised for the financial year 2019-20 and were kept unchanged during the COVID-19 pandemic.
Ashwini Dubey, head (motor renewals) at Policybazaar.com: “The premium for vehicle insurance will increase. For new cars if insurance cost is covered in loan, it may have a minimal impact. Car insurance costs will increase across the board. This hike was expected as third party insurance premiums had not increased for the past few years. Since the draft notification had been released earlier this year, this announcement was expected sooner than later.”
According to a government notification, a discount of 7.5 per cent on the premium shall be allowed for hybrid electric vehicles. Electric private automobiles with a capacity of less than 30 KW will be charged a premium of Rs 1,780. Such cars with a power output capacity exceeding 30 KW and up to 65 KW will incur a premium of Rs 2,904 for third-party insurance.
A discounted price of 50 per cent of the premium based on the Indian Motor Tariff shall be allowed to a private car registered as Vintage Car. All rates of premium shall be rounded off to the nearest rupee, according to the notification.
Here’s the list of new third-party insurance rates:
Third-Party Insurance For Private Cars:
For cars not exceeding 1000 cc: Rs 2,094
For cars exceeding 1000 cc but not exceeding 1500 cc: Rs 3,416
For cars exceeding 1500 cc: Rs 7,897
Third-Party Insurance For Two-Wheelers:
For two-wheelers not exceeding 75 cc: Rs 538
For two-wheelers exceeding 75 cc but not exceeding 150 cc: Rs 714
For two-wheelers exceeding 150 cc but not exceeding 350 cc: Rs 1,366
For two-wheelers exceeding 350 cc: Rs 2,804
Goods Carrying Commercial Vehicles (Other Than Three-Wheelers):
Gross vehicle weight not exceeding 7,500 kg: Rs 16,049
Gross vehicle weight exceeding 7,500 kg but not exceeding 12,000 kg: Rs 27,186
Gross vehicle weight exceeding 12,000 kg but not exceeding 20,000 kg: Rs 35,313
Gross vehicle weight exceeding 20,000 kg but not exceeding 40,000 kg: Rs 43,950
Gross vehicle weight exceeding 40,000 kg: Rs 44,242
Third-Party Insurance For Electric Private Cars:
Not exceeding 30 KW: Rs 1,780
Exceeding 30 KW but not exceeding 65 KW: Rs 2,904
Exceeding 65 KW: Rs 6,712
Third-Party Insurance For Electric Two-Wheelers:
Not exceeding 3 KW: Rs 457
Exceeding 3 KW but not exceeding 7 KW: Rs 607
Exceeding 7 KW but not exceeding 16 KW: Rs 1,161
Exceeding 16 KW: Rs 2,383.
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.