Buying a new car or two-wheeler will be more expensive across the country beginning next month, as the cost of third-party insurance premiums has been raised.
For the first time in three years, interest rates have been raised. On Wednesday, the Ministry of Road Transport and Highways issued a notification outlining how much one should pay following the hike.
According to the notification, there will be a premium increase of 15 percent on two wheelers above 150cc. Similarly, from June 1, a premium of 6 percent will have to be paid on a private car from 1000cc to 1500cc Private cars with an engine capacity between 1.000 cc and 1.500 cc will attract rates of 73,416 compared to 13,221, while owners of cars above 1.500 cc will see à drop in premium from 27,897 to 27,890.
Apart from this, the third party premium for the new private car will have to be paid 23 percent more. This is for vehicles up to 1000cc with a one-time tenure of 3 years. According to the ministry, private cars with an engine capacity of 1,000 cc will attract rates of 2.094 compared to 12.072 in 2019-20
If you buy a new private car, then the third party insurance premium of this car will be 11 percent more expensive. This premium will be provisioned for vehicles from 1000cc to 1500cc. Similarly, for new two wheelers, the third party premium will have to be paid 17 percent more. That is, overall the final price of your vehicle is bound to increase
There could be rellet for those looking to buy hybrid electric vehicles. According to new rates, a discount of 7.5 per cent on the premium shall be allowed for hybrid electric vehicles. While electric private cars not exceeding
30KW will attract a premium of 1.780. those exceeding 30 KW but not 65 KW will attract a premium of 2.904
The third-party insurance premium on commercial goods vehicles has also increased slightly.
The third-party insurance cover is for damage other than one’s own and is required in addition to the own damage cover that a vehicle owner must purchase. This is the first time the ministry has issued a notification regarding the increase in third-party motor insurance rates.
Previously, the Insurance Regulatory and Development Authority of India published third-party rates (IRDAI).