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IRDAI To Lower Third-Party Insurance Premiums on Small Cars

March 10 2018
IRDAI To Lower Third-Party Insurance Premiums on Small Cars

The Insurance Regulatory and Development Authority of India (IRDAI) have proposed to lower third-party insurance premium on small private cars and certain two-wheelers from April 1. The regulator also proposes that the same premium for e-rickshaws and super-bikes will be increased as well.

IRDAI released an exposure draft of premium rates for third party motor insurance for the fiscal year 2018-19 and have invited stakeholder’s comment on the new proposal. The draft proposes to lower the third party insurance on cars with less than 1000 cc engine capacity to ₹1850 from existing ₹2055.

The draft does not propose any changes in premium rates for cars with engine capacity above 1000 cc. It also proposed a rate cut for insurance premium on two-wheeler with less than 75cc engine to ₹427 from ₹569. No change has been proposed for entry level bikes between 75-150cc.

However, an increase is proposed for the premium on performance bikes between 150-350cc and super-bikes above 350cc will saw a double hike in premium to ₹2323. The insurance premium on e-rickshaw will also be hiked to ₹1685 from existing ₹1440 from the start of next financial year.

The regulator has proposed a 50% discount for premiums on private vintage cars certified by Vintage and Classic Car Club of India. Moreover, there is also a proposal to either increase or maintain the premium rates for most of the goods-carrying vehicles and agricultural tractors.

*Source: The Times Of India

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