The government intends to raise third-party motor insurance premiums
The Union Road Transport Ministry has proposed an increase in third-party motor insurance premiums for various vehicle categories, which is expected to raise the cost of car and two-wheeler insurance beginning April 1.
Private cars with 1,000 cubic capacity (cc) will be charged Rs 2,094 in 2019-20, up from Rs 2,072 in 2019-20, according to the proposed revised rates.
Similarly, private cars with 1,000 cc to 1,500 cc will pay Rs 3,416 compared to Rs 3,221, while owners of cars with more than 1,500cc will pay Rs 7,897 compared to Rs 7,890.
Two-wheelers with displacements greater than 150 cubic centimetres but less than 350 cubic centimetres will be subject to a Rs 1,366 premium, while those with displacements greater than 350 cubic centimetres will be subject to a Rs 2,804 premium.
The revised TP insurance premium will go into effect on April 1 after a two-year moratorium due to the COVID-19 pandemic.
TP rates were previously announced by the insurance regulator IRDAI. The road transport ministry will also notify the TP rates for the first time in consultation with the insurance regulator.
According to the draught notification, electric private cars, electric two-wheelers, electric goods-carrying commercial vehicles, and electric passenger-carrying vehicles are eligible for a 15% discount.
The third-party insurance cover is for damage to the vehicle that is not caused by the owner. This is mandatory coverage, in addition to the owner’s own damage coverage, that a vehicle owner must purchase.
This insurance policy covers any collateral damage to a third party, usually, a human being, caused by a car accident.
The ministry has asked for suggestions from anyone who may be affected by March 14.
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