3rd Party Insurance Rates Increased Across India: Your New Bike, Car Will Now Cost More! (Check New Rates)
Cars and bikes are set to get costlier as the ministry of road transport and highways has revised base premium rates for third-party insurance of vehicles.
It has done so for the first time since the onset of Covid-19.
It will take effect from June 1.
This is yet another burden for the common citizen who already has to pay around Rs 100 for a litre of petrol.
The new rates provide discounts for third party insurance in electric vehicles, hybrid vehicles and educational institute buses.
A discount of 15 per cent has been provided for educational institution buses.
A discounted price of 50 per cent has been allowed to a private car registered as Vintage Car.
A discount of 7.5 per cent on the premium shall be allowed for hybrid electric vehicles.
On to the revised insurance rates notified by the road transport ministry:
- Rs 2,094 compared to Rs 2,072 in 2019-20 for private cars with an engine capacity of 1,000 cc
- Rs 3,416 compared to Rs 3,221 for private cars with an engine capacity between 1,000 cc and 1,500 cc
- Rs 7,897 for cars above 1,500 cc
- Premium of Rs 1,366 for those over 150 cc but within 350 cc
- Rs 2,804 for those over 350 cc
Private EV not exceeding 30KW will attract a premium of Rs 1,780.
Those exceeding 30 KW but not 65 KW will attract a premium of Rs 2,904.
New private cars over 65 kw will attract a premium of Rs 6712.
Annual premium on new electric two-wheelers under 3 kw will be Rs 457.
The rate is Rs 607 for those between 3 kw and 7 kw.
Base rate for 7-16 kw two-wheelers has been set at Rs 1,161.
High-powered two-wheelers above 16 kw will see an annual premium of Rs 2383.
In case of commercial vehicles carrying goods, those between 12,000 – 20,000 kg will have to pay up Rs 35,313 from Rs 33,414 in 2019-20.
Commercial vehicles exceeding 40,000 kg are slapped with a higher premium at Rs 44,242 against Rs 41,561 in 2019-20.
The third-party insurance cover is for other than own damage and is mandatory along with the own damage cover that a vehicle owner has to purchase.
This insurance cover is for any collateral damage to a third party, generally, a human being, caused due to a road accident.