On June 1, liability insurance for two-wheelers under 75cc will be increased by 177%
The Ministry of Road Transport and Highways (MoRTH) has increased the Motor Third Party Liability (TP) insurance premium for different categories of vehicles effective June 1. This decision is expected to increase the cost of car and two-wheeler insurance.
According to the revised tariffs notified by the MoRTH, the premium for new passenger cars is increased between 1% and 23%. The premium for private cars with an engine capacity of 1000cc is increased by 23% and will attract rates of Rs 2094 from Rs 2072 in 2019-20.
For cars with engine capacity between 1000cc and 1500cc the premium is increased by 12% and will cost Rs 3416 against Rs 3221 and cars over 1500cc the premium is increased by 1% .
For two-wheelers under 75 cm3, the premium is increased by 177%; for vehicles with a cylinder capacity between 75 cm3 and 150 cm3, the premium is increased by 17%. For two-wheelers with a cylinder capacity greater than 150 cm3 but not exceeding 350 cm3, the premium is increased by 35% and for those greater than 350 cm3, the premium is increased by 16%.
After a two-year moratorium due to the COVID-19 pandemic, the revised liability insurance premium will come into effect on June 1. Previously, third-party tariffs were notified by the Insurance Regulatory and Development Authority of India (IRDAI). This is the first time MoRTH has notified third party rates in consultation with the insurance regulator.
The premium for electric passenger cars under 30 kW is increased by 27%; 11% for vehicles with a capacity between 30 kw and 65 kw, and 1% for those over 65 kw.
The premium for electric two-wheelers under 3 kW is increased by 177%; with a capacity between 3 kw and 7 kw, it increased by 17%; for vehicles over 7 kw and not exceeding 16 kw, it is increased by 35% and for those over 16 kw, the premium is increased by 16%.
The premium for goods carrying commercial vehicles exceeding 12,000 kg but not 20,000 kg will increase to Rs 35,313 from Rs 33,414 in 2019-20. In the case of goods carrying commercial vehicles exceeding 40,000 kg, the premium will increase to Rs 44,242 against Rs 41,561 in 2019-20.
The civil liability insurance cover covers damage other than own damage and is compulsory at the same time as the own damage cover that the owner of the vehicle must take out. This guarantee covers any collateral damage caused to a third party, generally a human being, following a road accident.
With PTI entries