IRDAI has kept the third party motor insurance premium rates unchanged. That means, the existing third party premium rates will be applicable from April 1, 2019.
In a circular, the insurance regular said, “IRDAI extends the validity of premium rates set out in FY 2018-19. In other words, insurers shall continue to charge the rates currently being charged for motor third party liablity insurance cover from April 1, 2019 onwards until further orders.”
Currently, the third party premium rates for private cars with engine capacity not exceeding 1000cc from Rs.2,055 to Rs.1,850. However, very few car models such as Alto 800, WagonR and Hyundai EON come under this segment.
For cars, with engine capacity between 1000-1500cc like Swift, Swift Dzire and i10 and cars with engine capacity above 1500cc (i20, Honda City and Ecosports), the premium rates are at Rs.2863 and Rs.7890, respectively.
Similarly, in the two-wheeler category, the premium for engine capacity between 75-150cc is Rs.720. For premium bike models, with engine capacity between 150-350cc, IRDAI has kept rates at Rs.985. The rate for super bikes with engine capacity exceeding 350cc would be Rs.2,323.
Every year, the insurance regulator revises premium rates taking into account the number of claims made and loss ratios for insurers. Third party motor insurance is mandatory in India.