The Insurance Regulatory and Development Authority of India (IRDAI) has notified the premium rates for private two-wheeler and car third-party liability insurance cover for the financial year 2019-20. According to the new rates, you will have to pay more for your two-wheeler and car third-party liability covers with effect from June 16, 2019.
The highest percentage increase of over 21 percent will be for two-wheelers with engine capacities between 150cc and 350cc. The rates are being hiked from Rs 985 to Rs 1,193. These vehicle owners will now have to pay an extra Rs 208 this year. However, there has been no change for two-wheelers with engine capacity of over 350cc.
According to the IRDAI notification issued on June 4, considering the mandatory nature of third- party insurance, insurers have to ensure that the third-party insurance is made available at their underwriting offices and through all available channels of distribution including online. The authority will treat any complaint of non-availability of insurance or use of methods to deny/delay the insurance cover seriously, the notification stated.
Further, insurers cannot cancel the current insurance policies and replace those with fresh policies with new premium rates. This notification, as well as the enclosed schedule of premium rates, will have to be prominently displayed on the notice board of every underwriting office and on the website of insurers where the public can also view it.
Comparison of new third-party premium rates with those currently in force
Third-party insurance premium rates for private cars
According to the notification, third-party premium rates have been increased for private cars with engine capacity less than 1000cc. The cost of third-party cover has been increased from Rs 1,850 to Rs 2,072. Under this scenario, the consumers will now have to pay an extra Rs 222 this year.
The rates are also hiked for private cars with engine capacity exceeding 1000cc but not exceeding 1500cc from Rs 2,863 to Rs 3,221. Here, consumers will have to pay an extra Rs 358 this year. However, the rates have not been changed for private cars with engine capacity more than 1500cc, it will still remain at Rs 7,890.
Third-party insurance premium rates for two-wheelers
Third-party premiums have been hiked for two-wheelers with engine capacity less than 75cc from Rs 427 to Rs 482. The rates are also hiked for two-wheelers with engine capacity exceeding 75cc but not exceeding 150cc from Rs 720 to Rs 752. Also, the rates are hiked for other two-wheelers with engine capacity exceeding 150cc but not exceeding 350cc from Rs 985 to Rs 1,193.
The rates have not been changed for a two-wheeler with engine capacity exceeding 350cc this year, it will still remain at Rs 2,323 only. Hence, if you are riding a Bullet 500 or a Bajaj Dominar or any other bike of above 350cc, you don't have to pay a higher premium for third-party insurance this year.
News Source: Economic Times, Url: https://bit.ly/31cqXp0