Irdai hikes third-party motor premia by up to 41%

Insurance regulator Irdai today notified a massive 41 per cent increase in new third-party motor premium rates for private vehicles between 1 litre and 1.5 litre engine capacities to Rs 3,132 from Rs 2,237 now.
The new rates will be effective from April 1, the regulator said in a notification.
The Irdai, however, left the third-party motor premium for private cars with 1 litre engines unchanged at Rs 2,055. It can be noted that the Irdai draft had mooted up to 50 per cent increase in third party motor premia.
Third-party motor liability rates are the only one in the general insurance industry that is still decided by the regulator.

In case of private four-wheelers with engine capacity of above 1,500 cc, the regulator hiked the third party premium rates to Rs 8,630 from Rs 6,164.
For commercial vehicles with a carrying capacity under 7,500 kg, the premium goes up marginally to Rs 7,938 from Rs 7,849, while in contrast, the premium has come down for commercial vehicles with carrying capacity of above 7,500 kg.

Similarly, the premium rate for commercial vehicles with carrying capacity between 7,500 kg and 20,000 kg, the rate is to Rs 14,330. The existing rate for trucks with carrying capacity between 7,500 kg and 12,000 kg stands at Rs 14,390 and for those with carrying capacity between 12,000 kg and 20,000 kg at Rs 15,365.

In case of two-wheelers, the regulator has kept the rates unchanged for vehicles upto 75 cc at Rs 569. However, it has increased the rates for two-wheelers of upto 150 cc to Rs 720 from Rs 619.
For two-wheelers up to 350 cc and those above this, the new rates will be at Rs 970 and Rs 1,114 respectively. In case of three-wheelers, the new rate goes up to Rs 5,680 from Rs 4,200.