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