Third-Party Insurance to be Hiked from June 1st: Cars and Two Wheelers to Cost More

The demand for revising the premium of third-party insurance was raised before the pandemic and was expected to be raised in the month of April 2022. The centre has allegedly worked to revise the premium of third-party insurance. The IRDAI has given a new list for the insurance company and the customers. If we look into the reports, it seems that the results are in favour of customers rather than insurance companies.

The insurance company was expected to raise the premium by 15-20 per cent but eventually, however, the results were different. The effect of the improvisation will directly affect the customers, as the purchase of the new vehicle will become costlier. In the last few years, the market for automobiles has shown a new height, due to which the sales of the vehicle have sunk. Although, the present revised premium has not shown the highest as expected by the insurance company. Let’s compare some of the vehicle’s revised premiums by the IRDAI.

According to the new guidance of the government, the updated charge for the third-party insurance for the private vehicle till 1000cc is Rs 2,094 from Rs 2,072. Owners with the vehicles from 1000cc to 1500cc have to pay Rs 3,416 which was Rs 3,227. For cars having more than 1500cc engine have to invest Rs 7,897 which was earlier Rs 7,890.

To ensure the security of the two-wheeler from third party insurance, the owner with less than 75cc engine two-wheeler has to pay Rs 538 and the two-wheeler which lies in between 75cc to 150cc will be insured at Rs 714. 150 to 350 cc two-wheelers get the new price of 1,366. All the remaining vehicles which are above the 350cc, now have to pay Rs 2,804.

By comparing the new price of the vehicle premium to get cover from a third party, it is easily comparable that there is no big difference. But if we look into the Electric segment, the IRDAI has fully revised the premium of the vehicles.

Forwarding toward the premium of EVs that brought new transformations and alternatives for society, then it has been modified a lot. In the private vehicle segment, the vehicle containing batteries under 30kw will pay 1,780 and the car between 30kw to 65kw is now Rs 2,904. Furthermore, the car which has more than 65kw of batteries has been revised to 6,712 for one year.

When we talk about the Two-wheeler, the modification for less than 3kw is Rs 457 and the two-wheeler carries batteries of 3kw to 7 kW and will now have to pay Rs 607. All the segments that come under 7 kW to 16 kW will be provided with Rs 1,161 of premium. In the end, all the EVs that hold more than 16 kW batteries are bound to pay Rs 2,383.

The revised rates for the premium of the third party have different standards when we compare them to the earlier price lists. In some of the terms, it has shown that there is a spike cover but for the petrol or diesel vehicle with a private owner, there is some leniency. Although, these are the modifications made by the government and these rules are going to be implemented from the 1st of June.

Source:                https://economictimes.indiatimes.com/industry/banking/finance/insure/centre-notifies-new-vehicle-insurance-rates/articleshow/91797208.cms