The IRDAI, in its draft circular on third-party motor insurance premium, proposed a premium hike in the range of 10-29% from 1st April 2016.
What is third-party insurance?
Third-party insurance is mandatory for all motor vehicles in India. The premium of motor third-party insurance is fixed and revised every year by IRDA.
|Existing Premium Rates||Proposed Premium wef
01st April 2016
|Not exceeding 1000 cc||1468||1908|
|Exceeding 1000 cc but not exceeding 1500 cc||1598||1998|
|Exceeding 1500 cc||4931||6164|
|Not exceeding 75 cc||519||569|
|Exceeding 75 cc but not exceeding 150 cc||538||619|
|Exceeding 150 cc but not exceeding 350 cc||554||693|
|Exceeding 350 cc||884||796|
For FY 2016, IRDAI has proposed an increase of 29% from Rs.1,468 to Rs.1,908 in the third-party premium rate for a four-wheeler not exceeding 1,000 cc. For those cars between 1,000 cc and 1,500 cc, the proposed rate hike is of Rs.1,998 an increase of 25% from Rs.1,598 earlier. For cars that exceed 1,500 cc, a 25% premium hike is proposed, which takes the premium from Rs.4,931 to Rs.6,164.
The third-party cover for two-wheelers of upto 75 cc capacity would attract a premium of Rs.569 from current Rs. 519; 75 cc to 150 cc capacity would attract a premium of Rs. 619 from the current Rs. 538, and between 150 cc to 350 cc capacity Rs. 693 as against Rs. 554 at present.