image title
NEWS

Alto, Kwid, Redi-GO Get Maximum Benefit from Lowered Premium Rates by IRDAI

Rohit Sapra Rohit Sapra 04 April 2018
4.0 (1 votes)

IRDAI gifts cheer and joy to current and future car owners of Alto, Kwid, Redi-Go and other small cars by reducing their premium rates.

image title

Owners of small cars Alto, Kwid, Redi-Go and other small cars having an engine capacity of less than 1000 cc can rejoice this financial year as Insurance Regulatory and Development Authority of India (IRDAI) has reduced the premiums for their car insurance. Every year, from the past few years, IRDAI has been increasing third-party premium rates. However, this year, the regulator has surprised everyone by reducing the premiums rates for third-party motor insurance for small cars and bikes which will be applicable from April 1, 2018. It has also kept the rates mostly same for the rest of the cars and bikes.

Third-Party Motor Insurance

A third-party motor insurance policy provides coverage against the damage caused to other people, their property and vehicles only. It does not cover damage caused to your own vehicle due to an accident, theft or any man-made or natural calamity. The Motor Vehicles Act, 1988 makes third-party motor insurance mandatory for every vehicle plying on the Indian roads. IRDAI decides the premium rates and notifies the same to all the insurance providers before the start of every financial year since 2011.

Changes in Third-Party premiums over the years:

F.Y. 13 – 14 (in Rs)F.Y. 14 – 15 (in Rs)F.Y. 15 – 16 (in Rs) F.Y. 16 – 17 (in Rs) F.Y. 17 – 18 (in Rs) F.Y. 18 – 19 (in Rs)
Private Cars
Not exceeding 1000 cc
941
1129
1468
2055
2055
1850
Exceeding 1000 cc but not exceeding 1500 cc
1110
1332
1598
2237
2863
2863
Exceeding 1500 cc
3424
4109
4931
6164
7890
7890
Two Wheelers
Not exceeding 75 cc
414
455
519
569
569
427
Exceeding 75 cc but not exceeding 150 cc
422
464
538
619
720
720
Exceeding 150 cc but not exceeding 350 cc
420
462
554
693
887
985
Exceeding 350 cc
804
884
884
796
1019
2323

The premium rates for Alto, Kwid, Redi-Go and other small cars have come down to Rs 1,850 from Rs 2055 i.e. a 10% downfall and for two-wheelers, it has been reduced to Rs. 427 from Rs 569 for vehicles having an engine capacity lesser than 75 cc. This definitely gives a reason to small car owners to smile as they are saving Rs. 205 on their third-party premiums. This benefit will also pass on to the owners of comprehensive car insurance as third-party insurance forms a part of comprehensive car insurance.

However, the premiums rates are more than doubling to Rs. 2323 from the previous rate of Rs. 1019 for owners of bigger bikes with more than 350 cc engines. They are sure to be disappointed since it's is a very high increase in the premiums.

Leave a rating!
4.0 (1 votes)
Rohit Sapra
Written by Rohit Sapra
Rohit Sapra, a licentiate, and currently an SME, is a seasoned insurance professional with previous work experience from Kotak and Birla Sun Life Insurance.