IRDA makes no hike in premium for the upcoming Financial Year
Posted on: 30/Mar/2019 11:41:43 AM
A latest notification from the Insurance Regulatory and Development Authority of India (IRDA) rolled out on Thursday states that for the upcoming financial year, there will be no kind of increase in motor third-party insurance premium that are done for cars or bikes or commercial vehicles.
Annually, there is a revision in premium amount of the range 10 to 40 percent. Last year, however, there was slash in rates by about 10 to 20 percent for cars and bikes and taxis, say reliable sources.
The insurers will have the liberty to fix the rate of interest for personal accident cases or owned damages caused. And the regulatory shall only fix the rate pertaining to 3rd party motor cover.
In fact, this announcement from the IRDA is a surprise to all the customers, because a range of 20 to 30 percent increase in rate was actually anticipated. On Thursday, the IRDA had rolled out notification in this regard stating that there will be no kind of change as far as the premium for third party insurance is concerned. The same rate charged towards Motor Third Party Liability Insurance Cover shall be charged for the upcoming financial year (that starts from 1st April) as well, it clarifies.
RS 427 premium
Premium amount of Rs 427 is applicable for small mopeds, scooters of small capacities, and engines that fall under total capacity of 75cc.
Rs 720 premium
The premium amount will be Rs 720 for scooters and motorbikes that come with 75cc to 150cc as its engine capacity.
Rs 985 premium
And the premium shall be charged as RS 985 in case of bikes with very high power range
The rates for scooters and motorbikes with engine capacity between 75-150 cc will be Rs 720 and for high-powered bikes Rs 985, the report stated.
Rs 1850 premium
Coming on to small cars, the premium charged will be Rs 1850
Rs 7,890 premium
For SUV cars that have the capacity of more than 1,500 cc, the premium will be Rs 7,890.
Rs 2,863 premium
The premium shall be charged as Rs 2,863 for sedan cars that have the capacity of 1000cc to 1500 cc.
Auto rickshaws, e-rickshaws and commercial cars
The premium for auto rickshaws will remain Rs 2,595 and that of e-rickshaws will be Rs 1,685. As far as the taxis and other tiny commercial cars are concerned, the annual premiums amount will be Rs 5,437. And in case of sedans belonging to entry level, the annual premium will be Rs 7,4117.
