As per an order by the Insurance Regulatory and Development Authority of India (IRDAI), premium rates for third-party insurance in India will be hiked for this fiscal year. The revised premium rates will come into effect on June 16, 2019.
According to the order, yearly premiums for private four-wheelers, with engines under 1,000cc, will be Rs 2,072. This marks a 12 percent increase over the Rs 1,850 premium of last year. Owners with cars between 1,000cc and 1,500cc will now have to pay a premium of Rs 3,221, a hike of 12.5 percent over last year’s Rs 2,863 premium. However, cars with engines larger than 1,500cc will continue to pay a premium of Rs 7,890 as there is no price hike in this segment.
For two-wheelers in the country, owners of vehicles less than 75cc will face a 12.9 percent hike, with the annual premium rising from Rs 427 to Rs 482. For two-wheelers between 75cc and 150cc, the premium is up from Rs 720 to Rs 752, marking an increase of 4.4 percent. The 150cc to 350cc two-wheeler segment sees the largest hike of 21.1 percent. Owners will now have to pay a premium of Rs 1,193, instead of last year’s Rs 985. Similar to private cars, two-wheelers above 350cc see no change in premium rates, with the amount set at Rs 2,323.
The order has also outlined the insurance premiums for electric cars and two-wheelers in the country. Annual premium for electric cars over 65kW is set at Rs 6,707, while a long-term policy would cost Rs 20,659. For electric two-wheelers over 16kW, yearly premiums will cost Rs 1,975, while a long-term policy is set at Rs 11,079.
Additionally, a 50 percent discount will be permitted for vintage cars that have been certified by the Vintage and Classic Car Club of India.
Dipan Sur
Viraaj Bhatnagar
Suraj Viswanathan
