As per a TOI report, if the proposal by the insurance regulatory body goes through there shall be an increase in third-party insurance for both cars and two-wheelers. For hatchbacks not with engine capacity over 1000 cc and sedans with capacity in the range of 1000-1500cc, the IRDAI has proposed a premium hike of 5% to Rs 2,182 and to Rs 3,383 respectively. Further for SUVs with a capacity of over 1500 cc, the rates have been held steady at Rs. 7890.
In the case of multi-year policies however there has been proposed a 15% in insurance premium to Rs. 6079 for vehicles with engine capacity less than 1000 cc. For autos, the premium cut of 50% is mooted to Rs. 1241.
Similarly for 5-year policies, the premium hike shall be of the same order i.e. 15% i.e. (below 75cc) and (75-150cc) to Rs 1,233 and Rs 3,845 respectively. In the case of bikes, the hike shall be of 19% Rs 6,505. Irdai kept rates steady for high-end bikes (above 350cc) at Rs 13,034, the daily mentioned.
For high-end cars with engine capacity in the range of 1000-1500cc, there is mulled an increase of 6.5% in the insurance premium while for luxury cars the rate has been kept unchanged at Rs. 24,305.