Car and two-wheeler insurance to cost more from June 16 with regulator IRDAI increasing the mandatory third party (TP) motor insurance by up to 21 per cent in certain category of vehicles.
Normally, the mandatory motor TP insurance cover rates are revised from April 1. However, this time, the new rates for the fiscal 2019-20 will be applicable from June 16.
The Insurance Regulatory and Development Authority of India (IRDAI) in an order said the new TP insurance for smaller cars (less than 1,000 cc) will cost Rs 2,072 or 12 per cent from the existing Rs 1,850. The hike in insurance premium for cars with engine capacity of 1,000 cc to 1,500 cc has been increased by 12.5 per cent to Rs 3,221.
However, the TP premium for cars with higher engine capacity (1,500 cc plus) has been retained at Rs 7,890.
The new Motor Third Party Liability Insurance Cover from June 16 will be Rs 482, up 12.88 per cent for two-wheelers with engine capacity of less than 75 cc and Rs 752 for those with engine capacity of 75-150 cc.
The maximum hike is for two-wheelers having engine capacity between 150-350 cc. The new premium will be Rs 1,193, up 21.11 per cent from the existing Rs 985. There will be no change in TP insurance premium for super bikes (350 cc plus).
IRDAI has also increased the TP insurance for public as well as private goods carrying vehicles.
There is no change for rates in case of e-rickshaw. However, the third party insurance premium in case of school buses has been increased.
Also, there is no change in long-term single premium rates. In case of cars, the long-term premium is for three years, and for two-wheelers, it is five years.