The impact of revised third party motor insurance premium on people. Since the third-party insurance plan is mandatory by law. These changes in premium rates will significantly impact all existing and intending policy buyers. Moreover, the hike in third-party insurance premium rates will result in a price rise for vehicles in both the two and four-wheeler segments.
Consequently, new-vehicle buyers will have to spend more money when purchasing two or four-wheelers. As they will need to buy a three-year policy, and bike owners purchase a five-year policy.
As per notifications from the insurance regulator and ministry, there will be a discount of 7.5% and 15% on the premium amount applicable for hybrid electric vehicles and electric vehicles, respectively. Electric private cars above 30KW will attract premium rates of Rs. 1,780, and those within the range of 30KW and 65KW will need to pay the premium of Rs. 2,904.
Moreover, the commercial vehicles carrying goods that exceed 12,000 kgs. But not 20,000 kgs will need to pay a premium of Rs. 35,313. In the case of commercial vehicles exceeding 40,000 kgs, the premium rates will be Rs. 44,242. These premium rates for different categories of vehicles will vary depending on the policy, which can be short or long term.
It is mandatory for vehicle owners to buy a third-party insurance plan along with their own damage cover. Such insurance policies cover injuries caused to third-party individuals or damage to any property in an accident involving the insured vehicle.
Besides, according to the notification, a rebate of 15% on the premium amount has been provided to the educational institution. 50% has been offered to private cars registered as vintage models.
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