After the Insurance Regulatory and Development Authority (IRDA) made the five-year third-party insurance mandatory as against the current coverage for one year, vehicle manufacturers were forced to increase the prices of their products. The decision was taken after the Supreme Court of India passed the judgement that the third party insurance cover for two-wheelers should be compulsory for a period of five years.
The new on-road prices include the mandatory five-year insurance. We've already published the new prices of the Royal Enfield's portfolio. The mandatory insurance premium on Royal Enfield motorcycles ranges from INR 7,781 to INR 17,558. In the table below are the old and new insurance prices for Honda 2Wheeler products in the Indian market.
|Model||Old Price (On-road)||New Price (On-road)|
|Activa 5G||INR 64,500||INR 68,657 - INR 70,766|
|Activa-i||INR 61,000||INR 64,639|
|Activa 125||INR 70,700 - INR 75,600||INR 75,504 - INR 81,464|
|Dio||INR 59,100 - INR 64,700||INR 66,705 - INR 68,965|
|Aviator||INR 62,500 - INR 64,800||INR 70,457 - INR 72,643|
|Cliq||INR 55,300||INR 58,257 - INR 58,825|
|Grazia||INR 68,700 - INR 73,900||INR 75,497 - INR 80,440|
|Navi||INR 48,800||INR 58,720|
|CB Honet 160R||INR 1,03,000 - INR 1,12,000||INR 1,07,569 - INR 1,16,617|
|CB Unicorn 160||INR 87,300||INR 95,563 - INR 98,332|
|X Blade 160||INR 95,700||INR 1,00,585|
|CB Unicorn 150||INR 82,600||INR 89,287|
|CB Shine SP||INR 72,500- INR 79,000||INR 78,813 - INR 83,779|
|CB Shine||INR 70,100 - INR 72,400||INR 75,646 - INR 78,932|
|CBR 250R||INR 1,89,600 - INR 2,22,600||INR 1,96,814 - INR 2,30,206|
|Dream Yuga||INR 62,900||INR 68,773|
|Dream Neo||INR 56,800 - INR 59,800||INR 65,683 - INR 66,011|
|CD Dream||INR 55,000 - INR 56,800||INR 63,178 - INR 63,505|
|Livo||INR 65,200 - INR 67,600||INR 72,367 - INR 75,051|
Honda's top-selling scooter, the Activa, has seen a price jump between INR 4,157-INR 6,266. Honda Navi's prices too have gone up from INR 48,800 to INR 58,720, marking a growth of INR 9,920. The premium segment product, CBR250R's prices have gone up from INR 1,89,600 - INR 2,22,600 to INR 1,96,814 - INR 2,30,206 - a growth of INR 7,214-7,606.
The new insurance rules apply to all vehicle manufacturers in the country. The increase in prices in fairly substantial but it covers the five-year insurance premium and thus it's highly unlikely that it will affect the buying decision of a potential customer.