Wednesday, 07 December 2022

TP motor insurance premium to go up from 1st June

TP motor insurance premium to go up from 1st June

The Department Ministry of Road Transport and Highways has increased the third-party motor insurance premium for several categories of vehicles with effect from 1st June. This decision is likely to jack up the insurance cost of cars and two-wheelers.

As per revised rates notified by the MoRTH on Wednesday, private cars with an engine capacity of 1,000 cc will fetch Rs 2,094 compared to Rs 2,072 in from last 2 yrs.

Similarly, private cars with engine capacity between 1,000 cc and 1,500 cc will attract Rs 3,416 to Rs 3,221, while owners of vehicles above 1,500 cc will see a reduction in premium from Rs 7,897 to Rs 7,890.

Two-wheelers more than 150 cc but not more than 350 cc will fetch a premium of Rs 1,366, and for more than 350 cc, the revised premium charges will be Rs 2,804.

After a two-year stay due to the COVID-19 pandemic, the revised third-party (TP) insurance premium will take effect from 1st June.

Earlier, TP rates were notified by India's Insurance Regulatory and Development Authority (IRDAI). This is the first time the MoRTH has notified the Third Party rates in consultation with the insurance regulator.

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As per the ministry's notification, a discount of 7.5 percent on the premium shall be allowed for hybrid electric vehicles.

While private electric cars not exceeding 30 KiloWatt will attract a premium of Rs 1,780, those exceeding 30 KiloWatt but not 65 KW will pay Rs 2,904.

The premium for goods carrying commercial vehicles more than 12,000 kg but not more than 20,000 kg will rise to Rs 35,313 from Rs 33,414 in the last 2 yrs.

For goods carrying more than 40,000 kg commercial vehicles, the premium will increase to Rs 44,242 against Rs 41,561 in 2019-20.

The third-party insurance cover is for rather than own damage and is compulsory along with the own damage covers that a vehicle owner has to purchase.

The insurance cover for repayment of the loan damage to a third party. Mainly a human being caused due to a road accident.

As per the notification, a discount of 15 percent has been provided for educational institution buses.

It said.

"A discounted price of 50 per cent of the premium has been allowed to a private car registered as Vintage Car,"

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