Motorists get relief again, third party insurance cover won’t be hiked this year

BENGALURU: The insurance regulator said on Thursday there would be no increase in motor third-party insurance premiums for bikes, cars and commercial vehicles for the financial year 2020. The regulator 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.

The Insurance Regulatory and Development Authority of India has this year chosen not to make any revisions to TP motor insurance. The regulator fixes rates only for third party motor cover and allows insurers to set their own rates for owned-damage and personal accident. This year, the 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.

No increase

IRDAI on Thursday informed insurers that the premium rates for motor third party set on April 1, 2018 will remain same until further notice. In other words, insurers shall continue to charge the rates currently being charged until further orders.

Current rates for small mopeds, small capacity scooters and two-wheelers with 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.