Press Esc to close
Saturday 23 August 2014
News updated at 9:53 AM IST
Weather
Max: 0°C
Min : 0°C
In Bangalore
Cloudy sky

Motor insurance premium to be costly by up to 20% from Apr 1

New Delhi, Mar 26, 2013 (PTI)
Reuters Image

Motor insurance premium is set to become more expensive, with IRDA allowing up to 20 per cent increase in third party rates from April 1 in view of rising inflation and the history of claim settlement.

"The overall percentage increase in the motor third party portfolio works out to 18.9 per cent. The above rates will be effective from April 1, 2013," IRDA said in a notification.

Charges for the third party insurance cover as per the notification will go up for two-wheelers, passenger cars and commercial vehicles.


For passenger cars not exceeding engine capacity of 1,000 cc, the revised third party premium is proposed to be hiked by 20 per cent to Rs 941 per annum. For two-wheelers exceeding 350 cc, the premium would go up by 18.30 per cent to Rs 804.

For goods carrying vehicles, excluding three-wheelers, with carriage capacity exceeding 40,000 kg, the premium would be Rs 15,035 per annum.

There is no increase in case of three-wheelers used for carrying passengers for hire or reward with carrying capacity not exceeding 6 passengers.

In case of four-wheelers used for carrying passengers with carrying capacity exceeding 6 passengers for hire, the increase is to the extent of 20 per cent from the existing level.

The earlier hike which was done in March 2012 was disputed by transporters’ association which had fought a legal battle with IRDA and general insurers in the Calcutta High Court. However, after eight months of litigation, the court had passed verdict in favour of the hike.

Earlier in 2012, while asking domestic general insurers to hike the provisioning — capital to be set aside to pay the future claims as it takes years to settle claims under this category — against the third party motor portfolio, IRDA had assured general insurers that it will allow them to hike the third party motor rates gradually.

The Insurance Regulatory and Development Authority (IRDA) had dismantled the third party motor insurance pool from April 1, 2011 thereby linking premium rate with the prevailing market rate.

Go to Top

Photo Gallery
Tourists stand in line outside Notre Dame Cathedral in Paris ...

Tourists stand in line outside Notre Dame Cathedral in Paris ...

A brave-heart woman takes on a group of attackers as they assault her husband in Meerut ...

A brave-heart woman takes on a group of attackers as they assault her husband in Meerut ...

Indian Men’s Hockey team accepting the “ ALS Ice Bucket Challenge” in New Delhi ...

Indian Men’s Hockey team accepting the “ ALS Ice Bucket Challenge” in New Delhi ...

Bengal Warriors and Telugu Titans in action during the Pro Kabaddi league match in Jaipur ...

Bengal Warriors and Telugu Titans in action during the Pro Kabaddi league match in Jaipur ...

Irom Sharmila who is on an indefinite fast  being re-arrested in Imphal ...

Irom Sharmila who is on an indefinite fast being re-arrested in Imphal ...

Bhojpuri actors Ravi Kishan, Madhu Sharma and Pawan Singh at a music launch in Patna ...

Bhojpuri actors Ravi Kishan, Madhu Sharma and Pawan Singh at a music launch in Patna ...

Sculptors giving final touches to the idols of Ganesh ahead of the Ganesh Chaturthi festival ,Agra .

Sculptors giving final touches to the idols of Ganesh ahead of the Ganesh Chaturthi festival ,Agra .

Singaporean Prime Minister Lee Hsien Loong with Chief Minister of Telangana K Chandrasekar Rao ...

Singaporean Prime Minister Lee Hsien Loong with Chief Minister of Telangana K Chandrasekar Rao ...

Women during the  inaugural ceremony of the Three-day North East Film Festival ...

Women during the inaugural ceremony of the Three-day North East Film Festival ...

Indian Men’s Hockey team Captain Sardar Singh ccepting the “ ALS Ice Bucket Challenge” ...

Indian Men’s Hockey team Captain Sardar Singh ccepting the “ ALS Ice Bucket Challenge” ...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523