The Insurance Regulatory and Development Authority of India (IRDAI), the insurance regulator has proposed a reduction in premium on insuring small private cars and certain types of two-wheelers in the country. But it plans to raise the same for several categories of goods vehicles in India.
IRDAI has released an exposure draft on premium rates for motor third-party (TP) insurance covers for the year 2018-2019, and it has invited stakeholders for submitting their comments till March 22.
The third-party motor insurance is mandatory for vehicles in India.
The IRDAI said that the data provided by the Insurance Information Bureau of India (IIBI) had been used for arriving at the Motor TP Premium rates proposed for 2018-2019.
The draft proposes to increase the premium on e-rickshaw from the existing price of Rs 1,440 to Rs 1,685 in the next financial year starting from April 1.
It has proposed to reduce the premium insurance amount for the third-party, which is mandatory for cars with engine capacity of less than 1,000 cc to Rs 1,850 from the present amount of Rs 2,055. The draft has not proposed any change in the rate for the cars which has an engine capacity of more than 1,000 cc.
If the draft is approved, then the premium on two-wheeler's with less than 75 cc engine will fall to Rs 427 from the actual amount of Rs 569. No change has been proposed for entry level bikes (75 cc to 150 cc).
It has proposed more than double the premium on super-bikes (exceeding 350 cc) to Rs 2,323. An increase has been proposed for the performance category bikes which has an engine capacity of 150cc-350cc.
It has further proposed to either increase or maintains the status quo in premium rates in most of the categories of commercial vehicles. The goods carrying vehicles exceeding 40,000 kg - proposed premium amount is Rs 39,299 from the current amount of Rs 33,024.
For private vintage cars which are certified as 'Vintage Cars' by Vintage and Classic Car Club of India, the regulator has proposed to allow 50 percent discount.
Further, it has proposed to reduce the third-party premium on a specific category of vehicles especially the four wheeler's used for carrying passengers.
For agricultural tractors up to 6HP (horsepower), IRDAI has proposed to increase the premium to Rs 816 from Rs 653.