The revision of the motor third party premium rates are out
and will be in effect from 1st April 2014. Earlier Insurance
Regulatory and Development Authority (IRDA) had proposed to increase the
premium by up to 137 percent. However the recent revised rates released by IRDA
shows a marginal addition of around 9-20 percent (depending on vehicle type) to
the existing third party premium rates.
The private car category will see an increase of around
19-20 percent while the two-wheeler category will be increased by 9-10 percent.
For hired vehicles with four or more wheels and carrying capacity exceeding the
number of passengers and three-wheeled passenger vehicles on hire with capacity
exceeding 17, IRDA has not changed the current rates. For the taxi segment
(four-wheelers for carrying passengers, on hire), a rise of 19-20 per cent was
announced. For auto-rickshaws (three-wheeled vehicles carrying not more than
six passengers), a 10 per cent rise in motor third-party premium was announced.
The table below will explain the increase applicable to you
as per your vehicle specification (Private vehicles)
|
Category
|
2013 (premium)
|
2014 (premium)
|
|
Private cars (not exceeding 1000
cc)
|
941
|
1129
|
|
Private cars ( exceeding 1000
cc, but not exceeding 1500 cc)
|
1110
|
1332
|
|
Private cars (exceeding 1500 cc)
|
3424
|
4109
|
|
Two Wheelers (not exceeding 75
cc)
|
414
|
455
|
|
Two Wheelers (exceeding 75 cc
but not exceeding 150 cc)
|
422
|
464
|
|
Two Wheelers (exceeding 150 cc
but not exceeding 350 cc)
|
420
|
462
|
|
Two Wheelers (exceeding 350 cc)
|
804
|
884
|
*source - IRDA
The motor insurance segment consists of two parts – the optional
own damage cover and the mandatory third party cover. Third party motor
insurance is mandatory for vehicles plying on Indian roads. The third party
insurance cover claims from third party arising out of accidents and damage
incurred by the third party.
While no hike in existing rate is good news, the people of
India can rejoice the fact that the hike is marginal and nowhere close to the
proposed increase of up to 137 percent.
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