The Insurance Regulatory and Development Authority of India (IRDAI) have announced that premium on insurance of small private cars and certain types of two-wheelers will be lowered, while the premium on e-rickshaws will be increased. IRDAI released an exposure draft on premium rates for motor third-party insurance for 2018-19 fiscal year and have requested stakeholders to comment on the new proposal till March 22. However, the draft does not propose any change in the existing rate for cars with engine capacity higher than 1,000 cc.
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According to the exposure draft, the premium on e-rickshaw would be increased from the existing Rs. 1,440 to Rs. 1,685 in the next financial year, while it has proposed to lower the premium for third-party insurance, which is mandatory, on cars with engine capacity of less than 1,000 cc to Rs. 1,850 from the existing Rs. 2,055. In the case of vintage cars, the regulator has proposed for a discount of 50 per cent for private cars certified by Vintage and Classic Car Club of India. Moreover, the draft also proposes.
The regulator has also proposed to more than double the premium on super-bikes exceeding 350 cc to Rs. 2,323, while an increase is proposed for performance category bikes in the 150 cc -350 cc segment. The premium on two-wheelers with less than 75 cc engine will fall to Rs. 427 from the current Rs. 569, whereas no change has been proposed for entry level bikes in the 75 cc to 150 cc range.
