The IRDA it may be recalled had notified that every fiscal year rates of third party motor insurance would be revised.
As per the new rules private car owners will have to pay a premium depending the size of the vehicle. The insurance for private cars engine capacity from below 1000cc to above 1500cc will range from Rs 784-2853. Two wheelers below 75 cc to above 350 cc will attract a premium in between Rs 350-680.
IRDA said that considering the mandatory nature, insurers are advised to “ensure that motor third party insurance is made available at their underwriting offices”.
However, Insurers are not permitted to cancel current insurance policies and issue fresh policies to effect new premium rates, it further added.