New vehicle insurance rates notified; premium to rise from June 1
The Centre has revised the base premium rates for third-party insurance of various classes of vehicles. The revised rates will result in premiums going up for cars and two-wheelers above 75cc. The increase in premium rates is going to benefit insurance companies as these rates were not revised since the Covid-19 outbreak in India in 2019-20. The revised rates will be applicable from June 1.
The road transport and highways ministry, with the Insurance Regulatory and Development Authority of India (IRDAI), has published the Motor Vehicles (Third Party Insurance Base Premium and Liability) Rules, 2022, which will come into force on June 1, 2022, says a statement.
The new rules notify discounts for education institution buses, a private car registered as a vintage car, and hybrid electric vehicles at 15%, 50% and 7.5%, respectively.
For private cars not exceeding 1,000 cc, between 1,000 cc and 1,500 cc and more than 1,500 cc capacity, the revised third-party base premium stands at ₹2,094, ₹3,416, and ₹7,897, respectively.
For two-wheelers, those below 75 cc, the base premium is ₹538. For two-wheelers between 75cc and150cc, the base premium is ₹714, while the premium is ₹1,366 for two-wheelers exceeding 150 cc but not exceeding 350 cc. For two-wheelers above 350 cc, the base insurance premium is ₹2,804.
For goods carrying commercial vehicles, other than three-wheelers, the third-party insurance base premium stands at ₹16,049 for GVW not exceeding 7,500 kg. Above that till 12,000 kg, the base premium is ₹27,186.
Between 12,000 kg and 20,000 kg GVW, the price has been fixed at ₹35,313. Above that till 40,000 kg, the price is ₹43,950 and above that, the price has been fixed at ₹44,242.
For public carrier vehicles carrying three-wheelers and pedal cycles, except e-carts, the revised base premium is ₹4,492. For private carriers, the premium is ₹3,922.
Besides, trailers including tractors up to 6 HP, will attract a third party insurance premium of ₹910, while other vehicles including miscellaneous & special types of vehicles (class-c) will attract a ₹2,485 premium.
For private electric cars exceeding 65KW, the base premium is ₹6,712, while this goes down to ₹1,780 for cars not exceeding 30 KW capacity. For electric two-wheelers exceeding 16 KW, the premium is ₹2,383, which goes down to ₹457 for vehicles not exceeding 3 KW.
The three-year single premium for private electric cars exceeding 65 KW capacity is ₹20,907, which goes down to ₹5,543 for electric cars not exceeding 30KW. The five-year single premium for new two-wheelers not exceeding 16 KW is ₹12,849, which goes down to ₹2,466 for those not exceeding 3 KW.
The educational institution bus means an omnibus, owned by a college, school or other educational institution and used solely to transport students or staff, the gazette notification shows, says the gazette notifications.