Govt proposes rates for third party motor insurance premium for FY24

According to a draft notification, the base premium rates for third party motor insurance cover have been proposed at Rs 2,094 for private cars below 1,000 cc, Rs 3,416 for cars

The government on Tuesday proposed new base premium rates for third-party motor insurance for different categories of vehicles, including two-wheelers, passenger cars, and commercial vehicles, for 2023-24 fiscal year.

According to a draft notification issued by the Ministry of Road Transport and Highways (MoRTH), the base premium rates for Motor Third Party Insurance Cover have been proposed at Rs 2,094 for private cars below 1,000 cc, Rs 3,416 for cars (between 1000-1500 cc), and Rs 7,897 for cars exceeding 1500 cc.

The draft Motor Third Party Premium and Liability Rules for the Financial Year (FY) 2023-24 has been prepared in consultation with Insurance Regulatory and Development Authority of India (IRDAI), the ministry said.

For two-wheelers not exceeding 75 cc, the rates have been proposed at Rs 538, while for two-wheelers up to 350 cc and above the proposed rates vary in the range of Rs 714 and Rs 2,804.

The proposed rates for Goods Carrying Commercial Vehicles (other than three-wheelers) not exceeding 7500 kg is Rs 16,049, while the rates vary in the range of Rs 27,186-Rs 44,242 for vehicles up to 40,000 kgs and above.

For the goods carrying motorised three-wheelers and motorised pedal cycles except e-carts, the proposed rate is Rs 4,492.
For private e-cars not exceeding 30 KW, the rates have been proposed at Rs 1,780 and for 30 KW-65KW proposed rates are Rs 2,904, and e-cars exceeding 65 KW (Rs 6,712).

Proposed rates for e-two wheelers not exceeding 3 KW is Rs 457, 3 KW-7 KW (Rs 607), 7 KW-16 KW (Rs 1,161), and for 16 KW and above (Rs 2,383).

For battery-based goods carrying commercial vehicles (other than three-wheelers) not exceeding 7,500 kg, the proposed rate is Rs 13,642, 7,500-1,2000 kgs (Rs 23,108), 12,000-20,000 kgs (Rs 30,016), 20,000-40,000 kg (Rs 37,357), and for those exceeding 40,000 kg (Rs 37,606).

A discount of 15 per cent has been proposed for educational institution buses, 50 per cent has been proposed for a private car registered as vintage car, 15-7.5 per cent discount for electric vehicles and hybrid electric vehicles, respectively.

Further, a reduction of about 6.5 per cent in the base premium rate has been proposed for 3-wheeled passenger carrying vehicles, the ministry said adding it invites comments and suggestions from all stakeholders within a period of 30 days.