Motor insurance that includes cars and bikes, will become costlier from April 1 as per the order of insurance regulator. Irdai has decided to raise premiums by up to 40 percent from the next financial year.
The third party motor insurance premium for small cars (up to 1,000 cc) will now be up 39.9 percent to Rs 2,055 from Rs 1,468 being presently charged. The rise in mid-segment cars (1,000 – 1,500 cc) too is around 40 per cent.
Premium hike in case of bigger cars and SUVs (above 1,500 cc) is 25 percent. It will now cost Rs 6,164 from April as against the present Rs 4,931.
“It is observed that the cost inflation index (CII) has increased by 5.57 percent over the previous year, i.e. from 1024 in FY 2014-15 to 1081 in FY 2015-16,” Insurance Regulatory and Development Authority of India (Irdai) said.
Likewise, premiums have increase in the case of bikes and scooters. The new premium rate for two-wheelers up to 75 cc is Rs 569 as against Rs 519. Two-wheelers diminishing in the category of 75 cc – 150 cc is up 15 percent to Rs 619 while there is a rise of 25 per cent for bikes in the category of 150 cc – 350 cc. However, premium has decreased in case of motor-bikes which are about 350 cc to Rs 884.
Basic third party (TP) premium for three-wheelers too has been raised. A new category ‘e- rickshaw’ has been launched and the basic TP premium has been fixed at Rs 1,125.