Friday 25 April 2014
News updated at 3:42 AM IST
Weather
Max: 34.6°C
Min : 22.8°C
In Bangalore
Generally cloudy

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
A fan offers sweet to a poster of Sachin Tendulkar on his 41st birthday, in Bikaner on Thursday...

A fan offers sweet to a poster of Sachin Tendulkar on his 41st birthday, in Bikaner on Thursday...

A physically challenged boy shows his voter identity card after casting vote for the Lok Sabha...

A physically challenged boy shows his voter identity card after casting vote for the Lok Sabha...

Elderly women outside a polling booth before casting their votes in Malda, West Bengal on ...

Elderly women outside a polling booth before casting their votes in Malda, West Bengal on ...

Voters show their identity cards as they wait to cast votes for Lok Sabha elections at a village...

Voters show their identity cards as they wait to cast votes for Lok Sabha elections at a village...

Bollywood actor Shah Rukh Khan displays the indelible ink mark on his finger after casting his ...

Bollywood actor Shah Rukh Khan displays the indelible ink mark on his finger after casting his ...

Catholic nuns show their inked finger after casting their vote for the Lok Sabha polls in ...

Catholic nuns show their inked finger after casting their vote for the Lok Sabha polls in ...

Malayalam film actor Mammootty presents a memento to prominent Malayalam writer and Janapith ...

Malayalam film actor Mammootty presents a memento to prominent Malayalam writer and Janapith ...

Women voters show their voter identity cards as they wait in queues to cast votes for Lok Sabha ...

Women voters show their voter identity cards as they wait in queues to cast votes for Lok Sabha ...

Bollywood legend Amitabh Bachchan, his wife Jaya Bachchan,  son Abhishek Bachchan, and daughter...

Bollywood legend Amitabh Bachchan, his wife Jaya Bachchan, son Abhishek Bachchan, and daughter...

Industrialist Mukesh Ambani with wife Nita Ambani and sons showing ink marked fingers after ...

Industrialist Mukesh Ambani with wife Nita Ambani and sons showing ink marked fingers after ...

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