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Third Party Motor Vehicles Sets A New Base Of Their Insurance Premiums- Centre Acknowledges It

On Wednesday 25th May 2022, the Ministry of Road, Transport, and Highways through a gazette notification validated the new base premium rates of insurance for third-party motor vehicles. The rates will be with effect from 1st June 2022.

The rates which were finalised by the centre are:

  • The two-wheelers over 150 cc but not exceeding 350 cc will have an insurance of Rs 1366/- whereas those over 350 cc will have a premium of Rs 2804/-.
  • The two-wheelers with 75 cc have a premium of Rs 2901/- for 5 years and those exceeding 75 cc but not 150 cc will be Rs 3851/- .
  • Personal vehicles not surpassing 1000 cc has been increased to Rs 2094/- from old 2019-20 rate if Rs 2072/-. The vehicles with an engine capability between 1000 cc to 1500 cc is also increased from an old rate of Rs 3221/- to Rs 3416/-. The automobiles with capability above 1500 cc have their premiums settled to Rs 7897/- from Rs 7890/-
  • A personal Electrical Vehicle (EV) not exceeding 30 KW can be insured for 3 years with a premium of Rs 5543/-. The EV between 30 KW and 65 KW will have a premium of Rs 9044/- that too for 3 years. And those exceeding 65 KW will be insured at Rs 20907/- for a span of 3 years.
  • The two wheeler EVs with an average of 3 KW can be insured for Rs 2466/- underneath 5 years single premiums and the ones within 3 KW and 7 KW will have its insurance for Rs 3273/-. The EVs with a range of 7 KW and 16 KW is settled for Rs 6260/- and the vehicles exceeding 16 KW will be insured for 5 years at the rate of Rs 12849/-.

The rates were decided and finalised for the financial year 2019-2020 and was kept unchanged for the prevailing COVID-19 pandemic. The industry was expecting an increase from the Regulator’s side as there was no revision of the premiums for the last 2 years.

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