Third party motor premium to rise

The Insurance Regulatory and Development Authority of India (IRDAI) has revised motor third party insurance premium of vehicles with effect from April 1, 2017.

For passenger cars above 1,500 cc, the new rate will be INR8,630 as against the current rate of INR6,164. For cars with engine capacity between 100—1,500 cc, the new insurance rate will be INR3,132 as against INR2,237. There is no change in the rate for cars below 1,000 cc.

IRDAI had earlier this month come out with the exposure draft which proposed a 16-50 per cent hike in premiums in various motor segments like two-wheelers and private cars from April 1. IRDAI has revisited the premium rates and moderated the rates in some of the categories. While consumers are not happy with a hike in premium rates for third party insurance, the insurance regulator believes that a rise in premium is inevitable.