3rd Party Vehicle Insurance Premium Hike Put On Hold

The Insurance Regulatory and Development Authority of India (IRDAI) has issued an order saying that the existing third-party insurance premium rates for the year 2019-20 stand extended beyond 31 March until further notice.

The insurance regulator in an order dated 27 March has said that the validity of premium rates for motor third-party liability insurance cover set out for the year 2019-20 stand extended beyond 31 March 2020, until further notice.

"Accordingly, all insurers shall continue to charge the rates currently being charged for Motor Third Party Liability Insurance Cover from 1st April 2020 onwards until further orders," says the order.

IRDAI in an exposure draft issued on 5 March 2020 had proposed a substantial increase in the third-party motor insurance premium rates for the financial year 2020-21.

The decision to postpone the hike may be in the light of the ongoing 21-day lockdown in the country. The government has already postponed several compliance deadlines and announced relief for the common man to ease the inconvenience caused by the lockdown.