Purchasing a brand new bike or car will become an expensive affair starting from the 1st of June, 2022 because our government has raised the rate of vehicle insurance premiums.
The Ministry of Road Transport & Highways already dispensed a notification pertaining to this premium price raise. Earlier, the rates of the premiums were generally informed by the main insurance regulator which is the IRDAI. However, this was the 1st time when the ministry stepped in and informed about the premium costs in discussion with the insurance.
As per this notification, the 3rd-party vehicle insurance premium rates will be raised in diverse types of automobiles. The premium rates will increase from six percent to seventeen percent.
This hike in premiums rates was proclaimed after 2 yrs. of halt because of the Corona pandemic. Also, as per this announcement, the premium rates on private cars ranging from 1000 cc - 1500 cc is going to be raised by six percent.
On the other hand, twenty three percent extra will be charged with regards to the 3rd party insurance on brand new private vehicles up to 1000 cc. Additionally, 3rd party premium rates for brand new private vehicles of 1000cc to 1500cc are going to be increased by eleven percent.
Even if a person purchases a brand new bike, he will be required to pay seventeen percent extra for a 3rd party insurance premium cost from the next month.
It is also important to note that the vehicle insurance premium rates will be hiked by up to fifteen percent on two wheelers that are above 150cc.
Additionally, the costs of two-wheelers available in our market also hiked during the 1st quarter of 2022.
All of this information is important to understand as purchasing insurance right away would be a wise decision on your part in case you’re an automobile owner. After the price hike, it will cost you more if you try to purchase insurance for your vehicle.