Third party insurance of car and two-wheeler vehicles (third party insurance) will be expensive from June 16. Actually, insurance regulator IRDA has increased the mandatory third party insurance premium for some categories of vehicles by up to 21 percent. In general, rates for third party insurance premiums are revised from April 1. However, new rates for 2019-20 will be applicable from June 16.
In the order of the Insurance Regulatory and Development Authority (IRDA), the Insurance Regulatory Authority of India (IRDA) said that the third party insurance premium has been increased by 12 percent in small cars with less capacity than 1,000 cc. Now the premium will increase from Rs 1,850 (currently) to Rs 2,072. Similarly, insurance premiums for 1,000-1,500cc vehicles have gone up by 12.5% to Rs. 3,221.
However, for the cars above 1,500 cc the third party insurance premium has not been increased. It has retained at Rs 7,890. In case of two-wheelers, the third party premium for two-wheelers less than 75 cc has increased by 12.88 percent to Rs 482. Similarly, the premium for 75 to 150 cc two-wheelers has been Rs 752.
Third party insurance premium has been the highest increase for two-wheelers of 150-350 cc capacity. The premium of two-wheelers in this category will increase from Rs 985 to 21.11 percent to Rs 1,193. No change has been made in the premium of Super Bike (two-wheeler above 355 cc). IRDA has also increased the third party insurance premium for private and public transport vehicles.
In the case of e-rickshaw, no change has been made in the rates. However, in case of school buses, third party insurance premiums have been increased. There has been no change in long term single premium rates. In the case of cars, the period of long term premium is three years and two-wheelers for five years.