On May 25, 2022, the Ministry of Road Transport and Highways, in consultation with the Insurance Regulatory and Development Authority of India, has published Motor Vehicles (Third Party Insurance Base Premium and Liability) Rules, 2022 in order to revise the base premium for third party insurance for unlimited liability. The rules shall come into force on 1st June, 2022.
Key points:
- For private cars with an engine capacity of 1,000 cc will now attract rates of ₹2,094. Private cars exceeding 1000 cc but not exceeding 1500 cc, will attract premium of ₹3,416.
- For Two wheelers not exceeding 75 cc, the insurance previous will be ₹538 and for two wheelers over 150 cc but not exceeding 350 cc, the insurance premium will be ₹1,366 while two-wheelers over 350 cc will command a premium of Rs 2,804.
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Three-year single premium for a new car not exceeding 1000 cc has been fixed at ₹ 6,521, while for a car between 1000 cc and 1500 cc it has been fixed at Rs 10,640. A new private vehicle exceeding 1500 cc will be insured at ₹ 24,596 for three years under the newly notified rates.
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Five year single premium for two wheelers not exceeding 75 cc is ₹ 2,901, exceeding 75 cc but not 150 cc is ₹ 3,851, and exceeding 150 cc but not 350 cc is ₹ 7,365. A two wheeler exceeding 350 cc can be insured for five years at ₹ 15,117 under the new rates.
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A new private electric vehicle (EV) can be insured at ₹ 5,543 for three years if it is not exceeding 30 KW. If the EV exceeds 30 KW but is less than 65 KW, the three year premium will be ₹ 9,044. Larger EVs exceeding 65 KW will be insured at ₹20,907 for three years.
Discounts available on the premium are:
- A discounted price of 50% of the premium has been allowed to a private car registered as Vintage Car.
- A discount of 7.5% on the premium has been allowed for Electric and Hybrid Electric Vehicles.
For more details, refer HERE