Motor insurance premium to be costly by 20% to 30% from April 1
Zee Media Bureau
New Delhi: Motor insurance premium is set to become more expensive, with Insurance Regulatory and Development Authority (IRDA) issuing draft allowing up to 20 to 30 percent increase in third party rates from April 1. As per the draft proposal, insurance premium of all vehicles will see a hike of about 20-30 percent except two-wheelers.
The draft reads that since April 1, a six-wheeler's third party premium will witness an increase of about Rs 1476 to Rs 2229.
According to the proposal, small size three-wheelers including e-rickshaw will have premium hike of Rs 59 and Rs 400 for other three-wheelers. Three-wheelers with a sitting capacity of about 6 to 17 seats will see a premium increase of Rs 959 to Rs 2059.
Similarly, proposal for commercial vehicles with sitting capacity more than 6 seats calls for Rs 2060 hike in premium.
There is no increase in case of two-wheelers.
IRDA had dismantled the third party motor insurance pool from April 1, 2011 thereby linking premium rate with the prevailing market rate