The government has proposed a minimum premium of Rs 2,094 for private cars below 1,000cc.
The Ministry of Road Transport and Highways (MoRTH) has issued the draft third-party motor insurance premium and liability rules for FY2024.
As per the notification, the ministry has proposed a premium of Rs 538 for 2-wheelers up to 75cc. The premiums for 2-wheelers up to 350cc and above range between Rs 714 and Rs 2,804.
The government has proposed a minimum premium of Rs 2,094 for private cars below 1,000cc. The rates for cars between 1,000-1,500cc and cars above 1,500cc have been set at Rs 3,416 and Rs 7,897, respectively.
The proposed rate for commercial vehicles other than 3-wheelers and not exceeding 7,500 kg is Rs 16,049. The rates for vehicles up to 40,000 kg and above range between Rs 27,186 and Rs 44,242. The premium for goods carrying motorized 3-wheelers and motorized pedal cycles except e-carts is Rs 4,492.
For private electric cars not exceeding 30 kW, the premium rates have been proposed at Rs 1,780 and for 30 kW-65 kW vehicles, the proposed rates are Rs 2,904 and for EVs exceeding 65 kW is Rs 6,712.
The proposed rates for electric 2-wheelers not exceeding 3 kW is Rs 457, for 3 kW-7 kW is Rs 607, for 7 kW-16 kW is Rs 1,161 and for 16 kW and above is Rs 2,383.
For electric goods carriers other than 3-wheelers not exceeding 7,500 kg, the proposed rate is Rs 13,642, for 7,500-12,000 kg vehicles is Rs 23,108, for 12,000-20,000 kg is Rs 30,016, for 20,000-40,000 kg is Rs 37,357 and for those exceeding 40,000 kg is Rs 37,606.
The government has also proposed a discount of 15% for buses used by educational institutions, 50% for privately registered vintage cars, 15% for EVs and 7.5% for hybrid vehicles.
The draft rules have been prepared in consultation with the Insurance Regulatory and Development Authority of India (IRDAI).
Keyword: Govt. proposes third-party motor insurance premiums for FY2024