Your motor insurance set to get cheaper as Irdai reduces third-party rates

Insurance sector regulator Irdai on Monday reduced motor insurance premium rates in most of the segments like two-wheelers, cars and trucks by modifying the rates for 2017-18 issued three-weeks ago.

The modified 'premium rates for motor third party liability insurance cover' will apply retrospectively from April 1, the Insurance Regulatory and Development Authority of India (Irdai) said in an order.

However, the premium rates for the current financial year are higher than those of the previous year.

As per the revised list, premium on mid-segment cars (1,000cc - 1,500 cc) has been reduced to Rs 2,863 from Rs 3,132 announced on March 28.

Similarly, premium for cars with engine capacity of more than 1,500 cc has been brought down to Rs 7,890 from earlier Rs 8,630.

There is no change in cars having engine capacity of less than 1,000 cc. The premium has been fixed at Rs 2,055.

Similarly, premium has been brought down in case of two- wheelers with engine of 150 cc and more.

Irdai further said premium rates have been reduced for most of the truck categories. The new rate, for instance, in case of 'goods carrying vehicles public carriers (exceeding 40,000 kg)' has been reduced to Rs 33,024 from Rs 36,120 notified on March 28.

Reduction has been also affected for e-rickshaw and other passenger carrying vehicles.

Modification in premium rates follows protest by a section of truckers against the Irdai's move to substantially hike insurance rates.