Insurance Regulatory and Development Authority of India (IRDA) have reduced the premium on a third-party insurance policy for certain motor vehicles. Read on to know more.
You would be happy to know that the Insurance Regulatory and Development Authority of India (IRDA) have reduced third-party insurance premium for some vehicles.
Vehicles such as i20, i10, Swift Dzire, etc. will enjoy this relaxation on premiums. Two-wheeler owners of Bajaj Pulsar, Honda Unicorn, Royal Enfield 350cc and 500cc will also see considerable savings.
Just like the last couple of years, third-party insurance premium rates were increased this year as well in the month of March. The revised rates were implemented from April 1, 2017. The reason for the hike in premiums – rise in the number of road accidents and third-party claims.
However, with the recent development, the previously increased third-party insurance premium rates for FY17-18 stand revised. If your insurance renewal is due or you have bought a new vehicle after April 1’17, you will have to pay almost 8% lesser premium as compared to the previously fixed premiums.
Third-party insurance is mandatory for every vehicle on the road, as per the Motor Vehicles Act, 1988. The premiums are based on the engine capacity (cc) and are decided by the IRDA.
The table below will help you find out the vehicles that saw a drop in premium amount:
|Description of vehicle||Premium for FY 16-17 (Rs.)||Premium for FY 17-18 (Rs.)||Revised premium for FY 17-18 (Rs.)|
|Not exceeding 1000cc||2,055||2,055||2,055|
|Exceeding 1000cc but not exceeding 1500cc||2,237||3,132||2,863|
|Not exceeding 75cc||569||569||569|
|Exceeding 75cc but not exceeding 150cc||619||720||720|
|Exceeding 150cc but not exceeding 350cc||693||970||887|
Source: IRDAI (https://www.irdai.gov.in) Moreover, the owners of E-rickshaw will also enjoy a drop in the TP premium prices.
This drop in the third-party premium shall bring some relaxation to certain vehicle owners, after seeing a continuous rise in the premium.