Large cars to be spared from motor 3rd party insurance premium hike

Third-party motor insurance premiums for most cars, two-wheelers, goods carriers, buses, including school buses, and other vehicles are set to increase wef 1 April, with the IRDAI making its annual proposal for motor insurance tariffs.

However, among private cars, those above 1500cc or luxury cars fall in the only sub-segment where the rate of premium is proposed to be kept unchanged, at INR7,890.

The regulator, in an exposure draft, is proposing an increase of 5.3% to INR2,182 ($30) for cars below 1000cc, a segment popular with those migrating from two-wheelers to cars. The rate proposed for 1000-1500cc cars is INR3,383, an increase of 5% over the current tariff of INR3,221.

The IRDAI has also proposed increasing the premium for three-year policies for cars below 1,000cc by 15%. The IRDAI has suggested higher tariffs as well for motor bikes, public goods carriers (other than three-wheelers), and private goods carriers.

The regulator is seeking feedback on the proposed new tariffs, with a deadline of 20 March.

Source: Asia Insurance Review