Third-party motor insurance premium to go up by 9-30%

IRDAI regulates third party motor premium that is revised each year based on inflation and claims

Insurance premiums might rise by nine to 30 per cent across categories in private cars, two-wheelers and commercial vehicles, with the Insurance Regulatory and Development Authority of India (Irdai) proposing a revision in motor third-party premiums.

For private cars, with engine capacity not exceeding 1,000cc, the rise proposed is 30 per cent. For those exceeding 1,000cc, it is 25 per cent.

Third-party motor premium is regulated by Irdai and revised yearly, based on inflation and claims. This type of insurance is mandatory for all motor vehicles on Indian roads and covers the owner from third-party liability arising out of accidents or damage.

For two-wheelers, there would be a rise of 10-15 per cent for vehicles up to 350cc, while a 10 per cent drop has been proposed for vehicles exceeding 350cc.

For commercial vehicles, a rise of 25-30 per cent has been proposed. Insurers say claims are high in this segment.

Based on the comments from stakeholders, Irdai will bring out the final rates to be applicable for thefinancial year beginning April 1.