Those planning to buy a new car or bike will now have to pay more money than before. This time the increase in the price of insurance will have an effect on the rate of car-bike. However, a marginal increase is proposed on commercial goods vehicles.
New Delhi: If you are also planning to buy a new car or bike, then this news is for you. From April 1, you will have to pay more for insurance on a new car-bike. Customers may have to pay 17 to 23 percent more for third party insurance to buy new cars and bikes from April 1.
Proposed rate announced
The Ministry of Road Transport in consultation with the Insurance Regulator (IRDAI) has announced the proposed rate of Third Party Motor Insurance for FY 2022-23. Following suggestions from the industry, the new rates will be applicable from April 1, 2022.
Insurance is available only at the time of sale
According to the Motor Vehicle Act, every vehicle plying on the road must have third party insurance. As per the Supreme Court order, from September 2018, every new 4 wheeler sold must have 3 years third party insurance and 2 wheeler 5 years 3 year third party insurance at the time of sale of the vehicle.
Rs 600 shock to two-wheelers
In such a situation, the burden of increasing third party insurance comes more on the purchase of a new vehicle. Therefore, those buying a vehicle up to 1500 cc will have to pay up to Rs 1200 more for third party insurance and for a two-wheeler up to 150 cc, the customer will have to pay Rs 600 more.
marginal increase on commercial goods vehicle
For private cars, depending on their engine capacity, the increase is proposed to be ₹7-195 and for two-wheelers the proposed hike ranges from ₹58 to ₹481. A deduction of ₹ 38 has also been suggested for 75-150 cc bikes, with a marginal hike proposed on commercial goods vehicles.
There was no increase due to corona epidemic
There was a proposal to increase the rates of motor third party insurance by 10-15% from 1 April 2020. But the rates did not change after the start of the corona pandemic and in 2021, the insurance regulator IRDAI did not change the third party motor insurance due to Kovid.
Last change was in June 2019
A discount of 15% has been proposed for electric vehicles including private cars, two wheelers, commercial goods carriage vehicles and passenger carriage vehicles. For hybrid electric vehicles, a 7.5% discount has been proposed in the notification.
The 25 general insurance companies present in the country had been demanding a hike in third party premiums for a long time. According to companies, the current rates are not sustainable, the solvency of some companies has come down below the prescribed standard and third party insurance related claims are increasing continuously, which has put pressure on the companies.