The Insurance Regulatory & Development Authority of India (IRDAI) has announced revised third-party insurance rates for two- and four-wheelers in the country.
Below is what IRDAI stated in its official announcement (posted on its official website):
Insurers are hereby advised to be mindful of the concerns expressed by vehicle owners about the availability of insurance. Considering the mandatory nature of Motor Third Party Liability Insurance, insurers are advised to ensure that Motor Third Party Liability Insurance is made available at their underwriting offices and through all available channels of distribution including online.
The two-wheelers under 75 cc of displacement will witness a 12.9% hike over the previous rates, while the vehicles in the 75 cc to 150 cc space will receive a 4.4% increase. The scooters and motorcycles between 150 cc to 350 cc will receive a 21.11% increase in the third-party premium rates, while the products above 350 cc will remain unaffected.
The increased premium will translate into higher on-road prices. Check out the new premium rates in the table below (W.E.F 16 June, 2019):
|Displacement||New Premium||5-year Single Premium|
|Under 75 cc||INR 482||INR 1,045|
|75 cc - 150 cc||INR 752||INR 3,285|
|150 cc - 350 cc||INR 1,193||INR 5,453|
|Over 350 cc||INR 2,323||INR 13,034|
Apart from internal combustion powered two-wheelers, IRDA has announced premium rates for electric scooters and motorcycles. The new premium rates on electric two-wheelers are listed below (W.E.F 16 June, 2019):
|Power Output||One Year Policy Premium||Long Term Policy Premium|
|Under 3 kW||INR 410||INR 888|
|3 kW - 7 kW||INR 639||INR 2,792|
|7 kW - 16 kW||INR 1,014||INR 4,635|
|Over 16 kW||INR 1,975||INR 11,079|
The Federation of Automobile Dealers Associations says that the price hike in the third party insurance will affect the automobile industry that is already going through a difficult phase. Speaking about the increase in the premium for third-party insurance, Manish Raj Singhania, Hon Secretary, Federation of Automobile Dealers Associations, said:
The automobile industry is already going through a difficult phase with low sales and subdued customer sentiments. This sudden change in price hike of third party insurance will again dent the pace of sales, specially the 2W category which is already reeling under price hike for mandatory five years insurance and ABS/CBS implementation.
With inputs from PTI
NOTE: Images for representation only