The new base premium rates approved by the government for third party motor vehicle insurance are applicable from 1 June 2022. The new rates are also expected to push up the prices of all new cars and bikes.
According to the new updates in the premium rates, the annual rate of third party insurance for private cars with engine displacement below 1000 cc is now Rs2,094, up from Rs2,072 in FY2019-20 and that for cars between 1000 cc and 1500 cc stands revised to Rs3,416 from Rs3,221. Annual premium for cars above 1500 cc is now set at Rs7,897.
The insurance premiums for motor vehicle insurance were last revised in FY2019-20 and the rates remained unchanged during the Covid-19 pandemic.
The three-year single premium for new cars below 1000 cc engine capacity has been fixed at Rs6,251, while the same for cars between 1000 cc and 1500 cc is set at Rs10,640. Insuring a new vehicle for three years that has an engine capacity of over 1500 cc will now cost Rs24,596.
In the case of two-wheelers, the annual insurance premium for those below 75 cc is Rs538, for those between 75 cc and 150 cc Rs714, for those between 150 cc and 350 cc Rs1,366, and that for two-wheelers above 350 cc Rs2,804.
The five-year single premium rates for two-wheelers below 75 cc is set at Rs2,901, between 75 cc and 150 cc Rs3,851, between 150 cc and 350 cc Rs7,365 and for those exceeding 350 cc it will be Rs15,117 under the new rates.
A new private electric vehicle (EV) can be insured at Rs5,543 for three years if its motor capacity is below 30 kW. For EVs between 30 kW and 65 kW, the three year premium will be Rs9,044. Larger EVs exceeding 65 kW will be insured at Rs20,907 for three years.
Electric cars with power output higher than 65 kW will command a three-year insurance premium of Rs20,907.
For new electric two-wheelers, the five-year single premium is Rs2,466 if they are not exceeding 3 kW. For those between 3 kW and 7 kW, the insurance premium is fixed at Rs3,273, for those between 7 kW and 16 kW Rs6,260, and for two-wheelers with motors that put out over 16 kW the premium charged will be Rs12,849.