Third party insurance to become more expensive for cars, two-wheelers after June 16
According to a new directive from the Insurance Regulatory and Development Authority (IRDAI), the mandatory third-party motor insurance premium will now cost more, starting June 16. This move applies to both cars and two-wheelers.
For two-wheelers of less than 75cc engine capacity, the premium will go up by 12.88 per cent which will then amount to Rs 482. For two-wheelers between 75-150 cc, a similar percentage hike will see the cost of cover go up to Rs 752. For two-wheelers between 150-300cc, the hike has been the sharpest at 21.11 per cent. Buyers will have to pay Rs 1,193, instead of Rs 985. There is no change in premium for two-wheelers above 350cc.
When it comes to cars, those below 1,000cc will now have to pay Rs 2,072 , a 12 per cent increase over the current Rs 1,850. A similar 12.5 per cent hike has been accorded to cars with engines between 1,000cc and 1,500cc, this now costs Rs 3,221. For cars with engines larger than 1,500cc, the premium remains unchanged at Rs 7,890.
There is no change for long-term premium rates, which is three years for cars and five years for two-wheelers. The premium for public and private commercial vehicles, as well as school buses, have gone up, but those for e-rickshaws have remained the same.