IRDAI, the regulatory authority for life and general insurance in India, has decided to keep the rates of third party motor vehicle insurance cover unchanged for cars for the fiscal year beginning April 1, 2018.
However, the rates have been slashed in some of the cases such as in case of small cars like Alto, Kwid etc where TP rates have been revised lower by 10%. While for other mid, high segment and SUVs the rates have been unchanged and this has come as a silver lining for car owners as they witnessed gradual increase in the TP motor vehicle cover rates for last 4-5 years.
So, for small cars with engine capacity of less than or equal to 1000 cc, the TP rates are now Rs. 1850 as against Rs. 2055 currently. For cars with engine capacity of over 1000 cc and less than 1500 cc, the rates are Rs. 2,863 while for cars with engine over 1500 cc capacity, the TP rates are Rs. 7,890.
Also, for two-wheelers where the engine capacity is less than 75 cc, the TP vehicle insurance has been brought down from Rs. 569 to Rs. 427. For engine capacity above 75cc but not more than 150 cc, the rates remain the same at Rs. 720. But for bikes in the segment where the capacity is more than 150cc, the TP rates have been hiked due to more claims. The new rates will be applicable from April 1.
For taxis, the TP premium rates have been slashed by Rs. 2000 while for auto-rickshaws the rates have been hiked by about Rs. 1200.
It is to be noted that IRDAI revises third party premium rates for motor insurance every year based on the claim experience.