Third-party insurance rates hiked
According to a revised rate notified by the ministry, the premium for private cars with 1000 cc engine capacity will now be ₹2,094 as against ₹2,072 in the year 2019-20.
If you plan to buy a new car or two-wheeler, get ready to pay more to drive one home from June 1. Buying a new car or two-wheeler is going to be expensive across the country from next month as the cost of third-party insurance premiums has been hiked. The rates have been hiked for the first time in last three years. The Ministry of Road Transport and Highways issued a notification on Wednesday, giving details on how much one should pay after the hike.
According to the notification, there will be a premium increase of 15 percent on two-wheelers above 150cc. Similarly, from June 1, a premium of 6 percent will have to be paid on a private car from 1000cc to 1500cc. Private cars with an engine capacity between 1,000 cc and 1,500 cc will attract rates of ₹3,416 compared to ₹3,221, while owners of cars above 1,500 cc will see a drop in premium from ₹7,897 to ₹7,890.
Apart from this, the third party premium for the new private car will have to be paid 23 percent more. This is for vehicles up to 1000cc with a one-time tenure of 3 years. According to the ministry, private cars with an engine capacity of 1,000 cc will attract rates of ₹2,094 compared to ₹2,072 in 2019-20.
If you buy a new private car, then the third-party insurance premium of this car will be 11 percent more expensive. This premium will be provisioned for vehicles from 1000cc to 1500cc. Similarly, for new two-wheelers, the third-party premium will have to be paid 17 percent more. That is, overall the final price of your vehicle is bound to increase.
There could be a relief for those looking to buy hybrid electric vehicles. According to new rates, a discount of 7.5 per cent on the premium shall be allowed for hybrid electric vehicles. While electric private cars not exceeding 30KW will attract a premium of ₹1,780, those exceeding 30 KW but not 65 KW will attract a premium of ₹2,904.
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There has been a slight increase in third-party insurance premiums on commercial goods vehicles as well.
The third-party insurance cover is for other than own damage and is mandatory along with the own damage cover that a vehicle owner has to purchase. This is the first time that the ministry itself has issued a notification on the third-party motor insurance rate hike. Earlier, the third-party rates were notified by the Insurance Regulatory and Development Authority of India.