Third Party Motor Insurance to get costly, Govt. proposes hike from April 1

For the various categories of vehicles, Road transport Ministry has proposed a hike in third party motor insurance premium.

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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

 

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.

 

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