Motor Vehicles (Third Party Insurance Base Premium and Liability) Rules-2022

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.

Disclaimer: Its Ready Reckoner for Ref. Purpose Only

#Rules2022 #Indian_Motor_Tariff #IRDAI #

New Motor Third Party Premium Effective From June 1, 2022

This Revision Done In Motor TP Premium Proposed For The First Time In Nearly 3 Years

Insurance #MotorInsurance #Auto #MotorThirdParty #IRDAI #Insurance #MotorTP #InsurancePremium

Know All About #PayAsYouDrive Insurance By Shashi Kumar Aansoo

The usage-based motor insurance, popularly known as ‘Pay As You Drive’, allows customers to pay the premium depending on how many kilometers the car has traveled. In the first tranche of sanctions, the Insurance Regulatory and Development Authority of India (Irdai) approved companies such as Bharti Axa General, Go Digit, TATA AIG, ICICI Lombard, etc.

Under this insurance scheme, a customer pre-declares vehicle usage for a period of one year. Accordingly, the insurance premium will be calculated dynamically as per the pre-declared distance in km. The customer can choose from three slabs – 2500 km., 5000 km. and 7500 km – as per his/her usage need.

Where to buy?

Insurers are now offering the usage-based product through their company websites, online insurance aggregators like PolicyBazaar.com, agents and other distribution channels.

If you want to buy the policy online, then you just have to provide the odometer reading, Know Your Customer (KYC) details, and fill up a customer consumer consent form.

Should you buy?

‘Pay As You Drive’ is ideal for the customers who have multiple vehicles and may not use each vehicle as much; therefore, they may not have to pay a large premium amount.

Also, If you are someone who mostly relies on public transport or even use your vehicles rarely due to medical complications, then this will help you cut cost on your vehicle insurance.

Also, another thing to consider is that a “Pay As You Drive” product is comprehensive own damage (OD) plus third party (TP) policy and is being offered on a pilot basis for a year. Insurers are required to sell 10,000 policies in six months to be able to offer this as a regular insurance policy.

आपके पास एक से ज्यादा गाड़ियां हैं या अपनी कार के इस्तेमाल की बजाए सार्वजनिक परिवहन का उपयोग करना बेहतर समझते हैं, ऐसे में आपको अपनी कार की इन्श्योरेन्स प्रीमियम पर ज्यादा नहीं खर्च करना पड़ेगा। आप #PayAsYouDrive जैसे पॉलिसी ले सकते हैं @shashiaansoo

#Insurance #Inspiration #Information # GeneralInsurance #IRDA #MotorInsurance #Car Insurance #Motor insurance #PayAsYouDrive

Disclaimer – Opinions expressed are solely my own or drawn from innumerable centers of lore. It do not express the views or opinions of my employer.

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