Irdai proposes hike of up to 50% in motor insurance premium
The Insurance Regulatory and Development Authority of India (Irdai) has proposed to increase the insurance premium for cars, motorcycles as well as vehicles by up to 50% from April 1. However, there is no proposal to increase third party motor insurance premium for small cars (up to 1,000 cc) from Rs 2,055 currently.
India's insurance regular has released a draft on premium rates for third-party insurance covers for FY18 and have invited stakeholders comments till March 18. The hike in insurance premium proposed in mid-segment cars (1000-1500cc) as well as bigger cars and SUVs is 50%.
It has proposed to increase the premium to Rs 3,355 for cars up to 1,000cc and Rs 9,246 for cars bigger than that. They have proposed no change on the premium for two-wheelers with engine capacity up to 75 cc. However, sports bikes and super bikes (more than 350cc) will attract an increase in premium to Rs 1,194 from Rs 796 currently, which is a 50% rise. An increase in premium has also been proposed for entry level bikes (77-150cc) and performance category (150-350cc)
In commercial vehicles (CVs), Irdai has proposed an increased in premiums depending on the category of CVs. For tractors rated at up to 6HP will not attract a premium of Rs 765 from Rs 510 currently. It also planned to increase the minimum insurance rates on e-rickshaws.
However, vintage cars will attract lower premium rates as the Irdai has proposed a 25% discount in premium rates. This will be a car which is certified as a vintage car by Vintage and Classic Car Club of India.