IRDA Raises Third-party Motor Cover Premium from April 1, 2013..!


The premium rates applicable to motor third party liability insurance
business will be effective from April 1, 2013 in India.

Insurance Regulatory and Development Authority (IRDA) on recently
raised the premium of the mandatory 3rd party motor insurance cover
by over 10 % to 20 % across categories.

The authority IRDA notified the premium rates applicable to  motor 3rd
party liability insurance business with effect from April 1, 2013.

A maximum increase of 20 % in third party premium has been allowed for
private cars, cabs & the goods carrying vehicles-public carriers
while the increase of the same for 2 wheelers would be little over
18 %.

Premium Rates Effective From April 1, 2013..!

Type of Vehicle               New Premium          Existing Premium

Two Wheelers

(75 cc to above 350 cc)    Rs. 420 - Rs. 804        Rs. 350 - Rs.680

Private Cars
Below 1000 cc                 Rs. 941                               Rs.784

1000 - 1500 cc                   Rs.1,110                             Rs.925

Above 1500 cc                 Rs. 3,424                              Rs.2,853

Goods Carring Vehicle   Rs. 13,082 - 15,035         Rs. 10,902 - Rs.13,020


However the insurance regulator IRDA has reduced the third party motor
premium for goods carrying vehicles-private carriers by 1.3 % as
compared to the current rates.

The regulator IRDA said considering the wide variation in premium charges
amongst the various sub- classes, the sub - classes were clubbed together
and a flat single revision was considered for the vehicle class as a
whole this time around.

Also, looking into the sudden & adverse impact on the policy holders
of such an increase in rates the authority decided to moderate the
rate increases in private cars, goods carrying vehicles public carriers, cabs among a few other vehicle classes.
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