The premium for mandatory third-party liability insurance will be priced higher from June 16. For private cars with engine capacity up to 1000 cc, the premium will go up by 12% from Rs 1,850 to Rs 2,072 and for those with engine above 1000 cc but less than 1500 cc, the premium will be hiked 12.5% to Rs. 3,221. For private cars above 1500 cc, there shall be no change in the third-party premium rate.
In case of two-wheelers, the premium rate will increase in the range of 4%-21%. However, for two-wheelers with engine capacity of more than 350 cc, there will be no change in the premium. Notably, the premium rate for long term cover has not changed.
The new revised rates have been notified by the Insurance Regulatory and Development Authority of India (Irdai) this week after the regulator sought suggestions on the exposure draft on May 20, 2019.
Though every year Irdai notifies the rate for third-party insurance in the last week of March and the same comes into effect from April 1. But this year in the circular dated March 28, it did not revised the rates rather the rates have been revised now for 2019-20.
Also there has been a proposal made in the draft exposure to provide 15% discount on the premium for electric vehicles.