Details of insurance cost of cars, two wheelers will increase from June 1
Third Party Insurance Premium: Buying a vehicle from June 1 will become costlier as the government has increased third party (TP) motor insurance premium. A notification in this regard was issued by the Ministry of Road Transport and Highways on Wednesday.
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 to a third party, generally a human, due to a road accident.
As per the revised rates notified by MoRTH, rates of Rs 2,094 will be applicable on private cars with engine capacity of 1,000 cc as against Rs 2,072 in 2019-20. Similarly, private cars with engine capacity between 1,000 cc and 1,500 cc will attract interest at the rate of Rs 3,416, while the premium for owners of cars above 1,500 cc will come down to Rs 7,890 from Rs 7,897.
Two wheelers above 150 cc but above 350 cc will attract a premium of Rs 1,366 and for two wheelers above 350 cc the revised premium will be Rs 2,804.
After a moratorium of two years due to the COVID-19 pandemic, the revised TP insurance premium will be applicable from June 1. Earlier, TP rates were notified by the Insurance Regulatory and Development Authority of India (IRDAI). This is the first time that MoRTH has notified TP 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.