All general insurance companies will continue to charge the Motor Third Party Cover premium rates currently being charged from 1st April 2020 onwards until further orders.
On 27th March 2020, Yegnapriya Bharath, Chief General Manager (Non-Life), the Insurance Regulatory Authority of India (IRDAI) has issued an order that the Motor third-party insurance premium rates will remain unchanged and the premium rate of the Motor Third Party Liability Insurance Cover will stand extended until further notice.
There is some good news for the two-wheeler and four-wheeler owners as far as the third-party insurance premium of their vehicles is concerned.
Earlier, the IRDAI had released the draft proposal for new premium rates. However, after the recent directive, the third-party (TP) premium rate for 2020-21 will remain the same as 2019-20.
At the start of the financial year, The new third-party (TP) premium rates are announced by the Insurance Regulatory Authority of India (IRDAI) for different categories of the vehicles.
For the two-wheeler category, the third-party premium rate will remain Rs 482 for below 75 cc engine. For the two-wheelers, more than 75 cc and below 150 cc, the current rate will continue for 2020-21.
Similarly, for the two-wheelers of more than 150 cc and below 350 cc, the current rate of Rs 1193 will continue until further notice. For the two-wheelers exceeding 350 cc, the third-party premium rate will remain as the current rate of Rs 2323.
Motor Third Party Liability Insurance Cover Premium Rates
For the private car segment, the Insurance Regulatory Authority of India (IRDAI) has proposed to keep the third-party premium rate constant only for the cars that have exceeding 1500cc engine capacity.
For cars with less than 1,000 cc engine capacity, the third-party premium rate would have gone up from Rs 2072 to Rs 2182, while for those cars where the 1000cc engine capacity but below 1500cc, the premium rate would have gone up from Rs 3221 to Rs 3383. Now, the rates remain the same and there will no change.
Till lockdown continues, one should ensure that the renewal of two-wheeler and four-wheeler can be done online. It’s better to keep them renewed.
It is compulsory to insure one’s vehicle with third-party insurance cover, According to The Motor Vehicles Act, 1988. Own Damage (OD) Insurance and Third-party Insurance (TP) are the two major components in a motor insurance policy.
The Own Damage (OD) premium may differ across insurance companies. Importantly, its only the third-party premium which is is set by the Insurance Regulatory Authority of India (IRDAI) each year.