Two-fold hike in Motor insurance premium from April 1: IRDA

Posted By: Religare
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Two-fold hike in Motor insurance premium from April 1: IRDA
Insurance Regulatory and Development Authority or IRDA has proposed a two- fold hike in Motor insurance premium from April 1 in view of rising inflation and the history of claim settlement.

As per the IRDA exposure draft, charges for the third party insurance cover will go up for two-wheelers, passenger cars and commercial vehicles.

For passenger cars not exceeding engine capacity of 1,000 cc, the revised third party premium is proposed to be hiked by 85.30 per cent to Rs 1,453 per annum. For two-wheelers exceeding 350 cc, the premium would go up by 108.14 per cent to Rs 1,415.

For goods carrying vehicles, excluding three-wheelers, with carriage capacity exceeding 40,000 kg, the premium would go up by 313.45 per cent to Rs 53,832 per annum.

Earlier last year, IRDA had dismantled the third party motor insurance pool thereby linking premium rate with the prevailing market rate.

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