New Delhi: Third party insurance premiums on cars, two-wheelers and transport vehicles may increase. The Insurance Regulatory and Development Authority has proposed a significant increase in premium rates in the next financial year starting from April 1, 2020.
IRDA has proposed to increase the third party (TP) motor insurance premium rates by 5.3 per cent to Rs 2,182 for cars below 1000 cc in FY 2020-21. Right now it is Rs 2,072. Similarly, the premium has been proposed to be increased from Rs 3,221 to Rs 3,383 for cars of 1000 cc to 1500 cc.
At the same time, TP premium for cars of more than 1500 cc is proposed to be maintained at the current price of Rs 7,890 only. Typically, TP rates are revised from April 1. According to the draft, it is proposed to increase the TP from Rs 482 to Rs 506 on a two-wheeler below 75 cc. It is also proposed to increase the premium on two-wheelers from 75 cc to 350 cc. It is proposed to increase the premium from Rs 2,323 to Rs 2,571 for bikes over 350 cc. IRDA has also proposed to increase the TP rates on electric cars and two-wheelers.