IRDAI hikes third party motor premium rates

In line with its proposal, IRDAI has hiked the third party motor insurance premium in most vehicle segments with effect from June 16, 2019.  

IRDAI has hiked the third party premium rates for private cars with engine capacity not exceeding 1000 cc from Rs.1,850 to Rs.2,072, an increase of 12%. However, very few car models such as Alto 800, WagonR and Hyundai EON come under this segment.

For cars, with engine capacity between 1000-1500 cc like Swift, Baleno and i20, IRDAI has increased the third party premium rates by 13% i.e. from Rs.2,863 to Rs.3,221. There is no change in high-end cars with engine capacity above 1500 cc (i20, Honda City and Ecosports). Currently, cars with such an engine capacity have to pay Rs.7,890 as third party premium.

Similarly, in the two-wheeler category, the revised premium for engine capacity between 75-150 cc is raised to Rs.752 from Rs.720. For premium bike models, with engine capacity between 150-350 cc, the proposed rates increase from Rs.985 to Rs.1,193. There will be no revision in super bikes with engine capacity exceeding 350 cc; as a result, the premium would remain unchanged at Rs.2,323.

Further, the insurance regulator has hiked the rates across the commercial vehicle segments.

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.

Revised third party premium rate effective from June 16, 2019

Source: IRDAI