Motor third party premium goes up from April 1
Come April, the third party (TP) insurance premium for most of the vehicles will go up as per insurance regulator's directive issued Thursday.
According to the order issued by Insurance Regulatory and Development Authority (IRDA) chairman T.S.Vijayan, the TP insurance premium for private cars with less than 1,000 cc engine capacity will be Rs.1,129 up from the current rate of Rs.941.
The new premium for private cars with engine capacity over 1,000 cc and below 1,500 cc will be Rs.1,332 up from Rs.1,110. For cars with engine capacity over 1,500 cc the new premium rate will be Rs.4,109 up from Rs.3,424.
In the case of two wheelers with less than 75cc engine, the new premium will be Rs.455 up from Rs.414.
For two wheelers with more than 75 cc-150 cc engine, the revised premium will be Rs.464 up from Rs.422.
In the case of two wheelers with engine capacity over 150 cc but below 350 cc and above 350 cc, the new rates are Rs.462 and Rs.884 respectively.
Curiously in some cases, the revised premium are lower than what had IRDA initially proposed.
The IRDA also clarified that the insurers are not allowed to cancel the policies that are in force and charge the revised rates.
(Posted on 27-03-2014)