Premiums for third-party insurance of vehicles could turn costlier in the coming few days. The Insurance regulatory and Development Authority has proposed a substantial increase in premium rates for the current fiscal year.
Usually premium rates are revised by the insurance regulator every year at the start of April. This year, the IRDAI decided to continue with old rates before notifying of a proposal to change the premiums.
According to the IRDAI's proposal, premium rates for cars below 1000 cc could be fixed at Rs 2,120 for the current fiscal. The current premium is Rs 1,850.
For Cars in the category of 1,000 cc to 1,500 cc, the premium has been proposed at Rs 3,300. The existing rate is Rs 2,863.
The regulator said that premiums for luxury vehicles with engine capacity of over 1500 cc could remain fixed at the current Rs 7890.
Similarly, premiums for two wheelers in the category of under 75 cc is proposed to be increased to Rs 482 from Rs 427. Premiums for 75 - 350 cc have also been hiked in IRDAI's proposal. Premium for over 350 cc two-wheeler motorcycles remains the same.
Premium rates have been proposed for taxis, buses, tractors, and trucks. Besides, a discount of 15% on motor premiums for electric cars and two-wheelers has also been proposed.
Stakeholders have time until May 29 to share their comments on the IRDAI proposal. Rates will accordingly be revised.