If your mind is thinking of buying a four-wheeler or two-wheelers then stop and read. Since buying a motorbike or car in the country will become costlier from June 1, the cost of third party insurance premium has been increased. Now the rising prices of petrol and diesel had given some relief that this news again made sense. This is the first time the price of insurance premium has increased in the last 3 years. The Ministry of Road Transport and Highways released a notification on Wednesday, that mentioned all the details of the price hike.
New Prices for different categories
As per the notification of MoRTH, revised rates of insurance premium for different capacity of private engine cars are :
|Engine Capacity||Revised Rates(₹)||Previous Rates(2019-20) ₹|
|two wheelers 150-350cc||1,366|
|two wheelers above 350cc||2,804|
After a moratorium of two years due to the COVID-19 pandemic, the revised TP insurance premium will be applicable from June 1.
This is the first time that MoRTH has notified TP rates in consultation with the insurance regulator. Earlier, TP rates were revised by the Insurance Regulatory and Development Authority of India (IRDAI).
On the other hand, a piece of good news for hybrid electric vehicles as a discount of 7.5 per cent on the premium will be given to the owner, as per the ministry’s notification.
Commercial vehicles carrying goods that exceed 12,000 kg but not 20,000 kg will have to pay the revised premium of ₹35,313 from ₹33,414 in 2019-20. If it exceeds 40,000 kg the premium will increase to ₹ 44,242 as against ₹ 41,561 in 2019-20.
Whereas electric private cars above 30 kW will give a premium of ₹ 1,780, electric cars above 30 kW but not 65 kW will pay a premium of Rs 2,904.
Third-party insurance is mandatory by the government of India as per the Motor Vehicles Insurance Act of 1988. This insurance cover is for damages other than self and is mandatory along with own damage cover that the vehicle owner has to buy. The insurance premium is for our safety so that our losses due to road accidents and others can be compensated.
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