3rd Party Motor Insurance Gets Upto 21% Expensive From June 16: Everything You Need To Know
Insurance Regulatory and Development Authority or IRDAI has increased the 3rd party motor insurance rates for both cars and 2-wheelers.
These new rates will be made effective from June 16th, and the new, increased rate is applicable for private cars and 2-wheelers.
The rates have been increased by 21% in some cases.
Here is everything you wanted to know..
New 3rd Party Motor Insurance Rates
For Private Cars upto 1000 CC engine:
The new rate is Rs 2,072, which is an increase of 12% (old rate was Rs 1,850)
For Private Cars upto 1500 CC engine, but more than 1000 CC engine:
The new rate is Rs 3,221, which is an increase of 12.5%
For Private Cars with engine capacity more than 3500 CC:
The increase rate varies between 4% to 21%, depending on the make and type of the vehicle
For 2-Wheelers with more than 350 CC engine capacity:
Long Term Plans Have No Change
As per the IRDAI notification, there has been no change in the rate of motor insurance for those plans, which are long term, and running as of now.
This is a major relief for long term insurance holders.
How Are The Rates Changed?
Insurance Regulatory and Development Authority is the nodal authority for determining insurance and reinsurance rates for motor vehicles in India.
IRDAI is constituted by the Insurance Regulatory and Development Authority Act, 1999.
Since 2001, IRDAI fixes and notifies the motor insurance rates for 3rd party every last week of March, and gets effective April 1st. However, this year, IRDAI issued a circular dated March 28th, 2019, but there was no rate change.
On May 20th, IRDAI issued a new notification with the new revised rates, which will be effective June 16, 2019.
Incentives For Electric Vehicles
As per IRDAI’s latest circular, a special incentive for electric vehicles have been proposed:
- 15% flat discount on premiums of electric cars
- Electric cars with power upto 30 kilowatts, premium has been fixed at Rs 1,761 (for one-year policy)
- For cars with power between 30 kilowatt and 65 kilowatt, premium has been fixed at Rs Rs 2, 738
- Electric cars with more than 65-kilowatt power, a premium has been fixed at Rs 6,707
- For long term insurance cover of electric vehicles, the premium has been capped at Rs 4,493 (upto 30 kilowatt power)
- Rs 8,104 for long term insurance cover for electric cars with power between 30 kilowatt and 65 kilowatt
- Rs 20,659 for long term insurance cover for electric cars with power more than 65 kilowatt
Note here, that 3rd party motor insurance is mandatory for all cars purchased after September 1st, 2018. 3 years for private cars and 5 years for 2-wheelers.
We will keep you updated, as more details come in.