Similarly, private cars in the range of 1,000cc to 1,500cc will now attract third party insurance premium at the rate of Rs 3,416 instead of Rs 3,221. Whereas owners of cars above 1,500cc will have to pay a premium of Rs 7,897 instead of Rs 7,890.
Coming to two-wheelers, the premium rate for two-wheelers falling between 150cc to 350cc will be Rs 1,366, while the revised premium rate for two-wheelers with capacity above 350cc will be Rs 2,804. The new premium rates are being implemented with a delay of two years due to the Corona epidemic.
Earlier, third party rates were notified by insurance regulator IRDAI. This is also the first time that the road transport ministry will notify third party motor vehicle insurance rates in consultation with the insurance regulator.
As per the notification, a discount of 15 per cent is proposed for electric private cars, electric two-wheelers, electric commercial vehicles and electric passenger vehicles.
Third party insurance cover is for other vehicles involved in the accident, it is a compulsory insurance cover. While buying a vehicle, the owner of the vehicle has to take third party insurance cover to meet the damage claim of other vehicles along with own damage cover.
This insurance cover is for any damage caused to a third party, generally a human being, due to a road accident. The ministry has sought suggestions from all the stakeholders to be affected till March 14.