IRDAI to reduce Motor vehicle 3rd-party premiums

Insurance Regulatory and Development Authority of India (IRDAI) has proposed lower rates for most vehicle categories in 2018-19. IRDAI revises premium rates every year after taking into account the number of claims made and loss ratio for insurers.

The regulator has proposed Rs 1,850 as motor TP premium for private cars not exceeding 1,000cc for 2018-19, compared with Rs 2,055 for 2017-18. For two-wheelers not exceeding 75cc, it is Rs 427 against Rs 569 in the previous year.

The IRDAI had hiked motor TP insurance premium by 28% for cars in 1,000-1,500cc and those exceeding 1,500cc categories during 2017-18 after proposing a 40% hike in rates earlier. Same is the case with two-wheelers in the 150-350cc category, as well as those exceeding 350cc.

Motor TP premiums would remain at the same levels for private cars in the 1,000-1,500cc as well as above 1,500cc categories. While the IRDAI has proposed the same motor TP premium for two-wheelers in the 75-150cc segment, it has come up with a marginal hike for those in the 150-350cc category. The regulator has, however, proposed a twofold hike for two-wheelers exceeding 350cc. The motor TP premium for these super bikes has been pegged at Rs 2,323. A discount of 50% would be allowed for private cars under the ‘vintage cars’ segment as certified by the ‘Vintage and Classic Car Club of India’.