As part of its annual exercise, the Insurance Regulatory and Development Authority of India (IRDAI), has fixed the rates for third-party (TP) motor insurance premium for FY19. In a move that is positive for motor insurance industry, the premium rates have been reduced and are effective from April 1.
The rates for cars that have an engine capacity above 1,000cc haven’t been revised, and remain the same as before. However, for private cars that have engines lower than 1,000cc capacity, the premium rates for third-party insurance has been brought down from ₹2,055 to ₹1,850.
As far as bikes are concerned, rates are carried as before for bikes having engine capacity falling between 75-150cc, the most popular segment in the two-wheeler category by volume. Revisions have been made to two wheelers with engine displacement less than 75cc. Their rates have been revised from ₹569 to ₹427.
Two wheelers falling in the performance category (150cc-350cc) are seeing their premium rates increase from ₹887 to ₹985. The rise in rates will pinch those owning superbikes the most, as the regulator has more than doubled their price from 1,019 to ₹2,323.
For the uninitiated, third party car insurance is mandatory in India, whereas the comprehensive car insurance – which includes ‘own damage’ along with third-party cover, is optional. Third-party coverage protects against damages done by your vehicle to third party property or another vehicle.So, make sure your car is secured with a car insurance plan that suits your needs.
*Source: Economic Times
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