Vehicle Insurance to Get Costlier By up to 40%
Modified On Mar 31, 2016 01:25 PM By Akshit
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The Insurance Regulatory and Development Authority (IRDA) has announced a hike of up to 40 per cent in the third-party motor insurance premium rates of vehicle insurance policies for 2016–17. From 1 April 2016, the premium for cars below and above 1500cc will be 40 and 25 per cent pricier, respectively.
Alongside cars, two-wheeler insurance premiums will also be increased by up to 25 per cent. The premium on two-wheelers below 75cc will be up by 9.6 per cent, while it'll be 15 per cent higher for motorcycles and scooters between 75cc and 150cc, and 25 per cent for two-wheelers above that slab (till 350cc). However, premium rates on motorcycles above 350cc will be reduced by 10 per cent.
Similarly, the premium for three-wheelers will witness a hike. E-rickshaws with a capacity of up to 6 passengers will be introduced and their basic third-party premium will be fixed at INR 1,125. The premium increase in case of public carriers will be in the range of 15–30 per cent. However, there will be no change in the premium of goods-carrying vehicles having a capacity up to 12,000 kilograms.
| Below 1500cc | 40% |
| Above 1500cc | 25% |
| Two-wheelers below 75cc | 9.60% |
| Two-wheelers below 150cc(above 75cc) | 15% |
| Two-wheelers between 150cc-350cc | 25% |
| Two-wheelers above 350cc | -10% |
| Public Carriers | 15-30% |
| Auto rickshaws | 3.20% |
| Goods carrier below 12000kgs | NA |
"It is observed that the cost inflation index (CII) has increased by 5.57 per cent over the previous year, i.e. from 1024 in FY 2014–15 to 1081 in FY 2015–16," the IRDA announced while notifying the rates of third-party insurance premium from the first of April.
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