Insurance Regulatory and Development Authority (Irda) on Tuesday raised the premium of the mandatory third party motor insurance cover by over 10 to 20% across categories.
The authority notified the premium rates applicable to motor third party liability insurance business with effect from April 1, 2013.
A maximum increase of 20% in third party premium has been allowed for private cars, cabs and the goods carrying vehicles-public carriers while the increase of the same for two wheelers would be little over 18%.
However the insurance regulator has reduced the third party motor premium for goods carrying vehicles-private carriers by 1.3% as compared to the current rates.
The regulator said considering the wide variation in premium charges amongst the various subclasses, the subclasses were clubbed together and a flat single revision was considered for the vehicle class as a whole this time around.
Also, looking into the sudden and adverse impact on the policy holders of such an increase in rates the authority decided to moderate the rate increases in private cars, goods carrying vehicles public carriers, cabs among a few other vehicle classes.