The Insurance Regulatory and Development Authority of India (IRDAI) has proposed to increase the Third Party Liability (TPL) insurance premium for less than 1000cc cars by as much as 107.79%. The draft proposal also seeks a marginal revision of TPL premium for two wheelers in India.
TPL insurance cover is mandatory for all vehicle owners as per The Motor Vehicles Act, 1988. The IRDAI, based on previous underwriting data, stated that there has been an increase in the average death claim amount in the small car segment as compared to other four wheelers. The financial year 2013-14 recorded the average death claim amount as ` 6,09,152 (as compared to `5,45,174 for 2012-13). The amount for financial years 2014-15 and 2015-16 is expected to be higher, said the insurance regulator.
IRDAI has floated the proposal to all its stakeholders and in case the same is accepted, car owners of cars like Nano or Alto 800 would have to pay approximately ` 420 more from April 1 2015. A response from the stakeholders is awaited on the matter by March 20 2015.