March 29,2019:
Insurance Regulatory and Development Authority of India (IRDAI), which is the insurance regulator has stated that, "There would be no increase in motor third-party insurance premiums for bikes, cars and commercial vehicles for the financial year 2020.
IRDAI had been hiking motor third-party (TP) insurance premiums nearly every April by 10-40% over the last decade; except for last year's unprecedented cut of 10-20% for bikes, cars and taxis.
It has this year chosen not to make any revisions to the TP Motor Insurance. The regulator fixes rates only for the third party motor cover and allows insurers to set their own rates for the owned-damage and personal accident.
This year, market was expecting a hike of 20-30% in insurance rates, so the regulator's decision comes as a welcome move for consumers, said sources.
Current rates for the small mopeds, small capacity scooters and two-wheelers with the engine capacity below 75cc will remain at Rs 427.
For scooters and motorbikes with engine capacity between 75-150 cc premium would be at Rs 720 and for high-powered bikes Rs 985.
For small car owners it will remain at Rs 1,850, for sedans (1,000-1,500 cc) and SUVs (above 1,500 cc) it is at Rs 2,863 and Rs 7,890 respectively. Rates for auto rickshaws and e-rickshaws are at Rs 2,595 and Rs 1,685 respectively.
Taxi owners of smaller commercial cars will continue to pay Rs 5,437 annually, while entry-level sedans might have to shell out Rs 7,147 a year.
Source TOI
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