Third-party motor insurance premium to go up from June 1
The Ministry of Road Transport and Highways (MoRTH) on May 25 increased the third-party (TP) motor insurance premium for various categories of vehicles with effect from June 1, a decision which is likely to jack up the insurance cost of cars and two-wheelers.
According to the revised rates notified by the MoRTH, private cars with an engine capacity of 1,000 cc will attract rates of ₹2,094 compared to ₹2,072 in 2019-20.
Similarly, private cars with an engine capacity between 1,000 cc and 1,500 cc will attract rates of ₹3,416 compared to ₹3,221, while owners of cars above 1,500 cc will see a drop in premium from ₹7,897 to ₹7,890.
Two-wheelers over 150 cc but not exceeding 350 cc will attract a premium of ₹1,366 and for two-wheelers over 350 cc the revised premium will be ₹2,804.
According to the Ministry’s notification, a discount of 7.5% on the premium shall be allowed for hybrid electric vehicles.
While electric private cars not exceeding 30KW will attract a premium of ₹1,780, those exceeding 30 KW but not 65 KW will attract a premium of ₹2,904.
The premium for goods carrying commercial vehicles exceeding 12,000 kg but not 20,000 kg will increase to ₹35,313 from ₹33,414 in 2019-20.
In the case of goods carrying commercial vehicles exceeding 40,000 kg, the premium will increase to ₹44,242 as against ₹41,561 in 2019-20.
The third-party insurance cover is for other than own damage and is mandatory along with the own damage cover that a vehicle owner has to purchase.
This insurance cover is for any collateral damage to a third party, generally a human being, caused due to a road accident.
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