The Insurance Regulatory and Development Authority of India (IRDAI) has reduced the premium rates for motor third-party (TP) insurance covers for 2018-19. IRDAI had issued a circular on March 28 where it has stated that the rates will be effective from April 1, 2018.
The premium on two-wheelers with engine capacity less than 75 cc will fall to Rs 427 from the current Rs 569. No change has been made for entry level bikes (75 to 150 cc). However, IRDAI has more than doubled the premium on super-bikes (exceeding 350 cc) from Rs 1,019 to Rs 2,323. Also, premiums have been increased for performance category bikes (150-350 cc) from Rs 887 to Rs 985.
For vehicle owners under the 75 cc category, there is reduction in premium by 24%, for owners in the 150 -300 cc category (which is the most common), there is an increase in the premium by 11%. The premium for bike capacities greater than 350 cc has increased by around 127%.
Motor third-party premium for 2018-19 ( For two-wheelers)
|Sr No||Description of vehicle class||Premium ( in Rs.) w.e.f April 1, 2018|
|1||Not exceeding 75 cc||427|
|2||Exceeding 75 cc but not exceeding 150 cc||720|
|3||Exceeding 150 cc but not exceeding 350 cc||985|
|4||Exceeding 350 cc||2323|
What is third party insurance ?
The damage caused to others because of one's vehicle falls under liability-only policy covers (LOPC) or third-party insurance, which is compulsory. The tariffs under the third-party insurance are under Irdai's ambit for which it is notifying the rates since 2011. Third-party insurance only covers the damage done by your car or bike to other vehicle or property and does not cover accidents, theft or damage to your vehicle.
Article Source : Economic Times