Premium rates of vehicles increases by 41%

The Insurance Regulatory and Development Authority of India (IRDAI) has increased rates by up to 41 per cent across various categories of vehicles.

The quantum of increase varies widely depending on the category of vehicles, such as two-wheelers, private cars, goods carrying vehicles (both public and private), motorised three-wheelers, and trailers.

In an exposure draft issued on March 3, the IRDAI had proposed an increase of up to 50 per cent for certain categories of vehicles. The final order has, however, capped the maximum increase at 41 per cent.

“After examining the comments received from various stakeholders, the Authority has revisited the premium rates as the exposure draft has further moderated the premium rates in some categories,” Yajna Priya Bharath, Chief General Manager (Non-Life), IRDAI, said.