The prices of all vehicles including four-wheelers and two-wheelers in India will be hiked. The government has increased the third-party (TP) motor insurance premium. After two years due to the Covid-19 pandemic, the revised TP insurance premium will be applicable from June 1, before which, the TP rates were revised by the Insurance Regulatory and Development Authority of India (IRDAI) ) was notified. As per the notification of the ministry, a rebate of 7. 5 percent will be given on the premium for a hybrid.
After this decision was taken by the central government, now a higher amount will have to be paid to get insurance according to the engine of the car. According to the notification issued by the Ministry of Road and Transport in relation to this increase, the premium of motor insurance was increased earlier for the year 2019-20. It was told that the new rates of insurance premium will be effective from June 1, 2022.
Insurance of other vehicles including your car is going to be expensive from June 1, 2022. The central government has increased the premium rate of third-party motor vehicle insurance.
According to the notification of the Central Government, not only for four-wheelers but also for two-wheelers, the government has changed the rate of third-party insurance premiums. According to the transport ministry, now vehicles with engine capacity of less than 1,000 cc will have to pay a fixed premium of Rs 2,094 for third party insurance, as against Rs 2,072 in 2019-20. Apart from this, the third-party insurance premium for cars from 1,000 cc to 1,500 cc has been increased from Rs 3,221 to Rs 3,416. There has been a marginal hike in third-party insurance premiums for vehicles above 1,500 cc to Rs 7,897 from Rs 7,890. According to the notification, with effect from June 1, 2022, the premium for bikes ranging from 150 cc to 350 cc will be charged at Rs 1,366, while the insurance premium for two-wheelers with engine capacity above 350 cc has been fixed at Rs 2,804.
There was no change in the premium for two years due to the Corona epidemic. The revised TP insurance premium will be applicable from June 1. Earlier, these rates were notified by the Insurance Regulatory and Development Authority of India (IRDAI). This is the first time that the Ministry of Road and Transport has notified the TP rates in consultation with the insurance regulator.
According to the notification issued by the ministry, a provision has been made to give a rebate of 7.5 percent on the premium for hybrid electric vehicles. While fixing the third party insurance premium for private e-cars also, the government has said that now the three-year premium for e-cars with capacity up to 30 kW will be Rs 5,543, while for e-cars between 30 kW to 65 kW. The three-year premium for e-cars with a capacity of more than 65 kW will now be Rs.
Third-party insurance cover is for damages other than self and is mandatory with own damage cover to be purchased by the vehicle owner. This insurance cover is for any damage caused to a third party, generally a human being, due to a road accident.