Third party vehicle insurance premiums in India likely to cost more
The Insurance Regulatory and Development Authority of India has proposed a hike in the third party vehicle insurance premiums by around 3 to 30 per cent across all categories. If the proposal is cleared, it will come into effect from April 1, 2016.
As per IRDA's proposal, four wheelers with engine capacity below 1,000cc will attract a 30 per cent hike while those with engine capacity over 1,000cc will attract a 25 per cent hike in third party insurance premium.
Two-wheelers haven't been spared either with a 9.63 per cent hike proposed for those with engine capacities below 75cc. The hardest hit amongst two-wheelers will be those with engine capacities between 150 to 350cc as their insurance premiums could go up by 25.09 per cent. However, owners of two-wheelers above 350cc would be paying around 10 per cent less.
In case of four-wheelers that carry passengers i.e. cabs and taxis, the third party insurance premium will be dearer by 30 per cent for vehicles with engines below 1,000cc and by 25 per cent for vehicles with engines above 1,000cc.
IRDA has proposed these hikes after evaluating data pertaining to number of policies, claims reported and amount of claims paid for each vehicle category. It has sought comments from stakeholders before March 20, 2016.