Ministry of Road transport proposed a hike in the third-party motor
insurance premium for various categories of vehicle, leading to increase in insurance
premium cost of two-wheelers and cars from April 1, 2022.
The Ministry came out with a draft notification on the revised premium
costs. It also invited stakeholders to produce their arguments by March-end.
As per the proposed revised rated, private cars with 1000 cubic capacity
(cc) will be at the rate of Rs. 2,094 compared to 2,072 in 2019-2020.
For cars with 1000 cc to 1500 cc, the insurance premium rate will
be Rs. 3,416, which was previously Rs. 3,221. The owners of cars above 1500cc will
see a premium of Rs. 7,897 compared to Rs. 7890 previously.
For two wheelers over 150cc but not exceeding 350cc will attract
a premium of Rs. 1,366, two wheelers above 350cc will attract revised premium up
to Rs. 2,804
Also read :Fake vehicle insurance racket busted in UP
Third party rates were notified by the insurance regulator
Insurance Regulatory and Development Authority (IRDAI) earlier. For the first
time that the road transport ministry will notify the third party rates in
consultation with the insurance regulator.