Car Insurance Alert
Due to the coronavirus pandemic, the premium for third party insurance has not increased for the last two years. Now an increase has been announced in it. Let us know how much the insurance premium has increased on which vehicle
Car Insurance Premium
The Union Road Transport Ministry has proposed to increase the premium of third-party motor insurance for various categories of vehicles. Because of this, the insurance cost of cars and two-wheelers will likely increase from April 1.
Car owners’ pockets will be so loose
As per the revised rate proposed by the ministry, the rate of third party insurance for a 1,000 cc private car will be Rs 2,094. From 2019-20, this rate was Rs 2072. Similarly, for a private car from 1,000 cc to 1,500 cc, the rate will increase from Rs 3,221 to Rs 3,416. For cars above 1,500 cc, the rate will increase from Rs 7,890 to Rs 7,897.
This will be the rate for two wheelers
The premium for a bike between 150 cc to 350 cc will be Rs 1,366. For bikes above 350 cc, the premium will be Rs 2,804.
Premiums were not increased for two years due to Kovid-19
Due to the Kovid-19 epidemic, there was no increase in the premium of third party insurance policies for two years. This proposed increase in premium will be effective from April 1, 2022.
Earlier IRDAI used to notify the rate
Earlier the insurance regulator IRDAI used to notify the rates of third-party insurance. For the first time, the Ministry of Transport will notify the rates of third-party insurance after consultation with the insurance regulator.
Electric car owners benefit
According to the draft notification, a discount of 15 percent is proposed on electric private cars, electric two-wheelers, electric commercial vehicles for carrying goods and electric passenger vehicles.
A discount of 7.5 per cent is offered on the rate of third party insurance premium for Hybrid Electric Vehicles. This is a proposal to promote the use of environmentally friendly vehicles.
Third party insurance cover is essential
Along with an insurance cover that covers your damages, a third party insurance cover is also a must. This insurance cover covers any collateral damage in a road accident. The ministry has sought suggestions on the draft notification by the end of March