The IRDAI has increased the third party (TP) motor insurance premium for small and medium private cars with a capacity of up to 1500cc by 12-12.5%, with the new rates taking effect on 16 June.

In the case of private 1000cc four-wheelers, the new annual premium is INR2,072 ($30) instead of INR1,850 earlier. For cars with a capacity of 1000cc to 1500cc, the new premium is INR3,221.

There is no change in the premium for cars with a capacity of above 1500cc.

The regulator has also proposed increases in TP premiums for two-wheelers and heavy vehicles.

The insurance regulator had in March deferred the hikes in third party insurance premiums due to the just-concluded general elections. Previously, the increases were generally effected on 1 April each year.

In addition, the premiums for 3-year car policies and 5-year two-wheeler policies remain unchanged. After Supreme Court’s ruling last year ordering the enforcement of mandatory TP motor insurance for all vehicles plying on Indian roads, the IRDAI made it compulsory for all vehicles bought after 1 September 2018 to have long term cover.

TP motor insurance rates are currently the only tariffs still being determined by the insurance regulator .